First quarter Net Revenue of $232 million, Net
Loss of $6 million
Adjusted EBITDA increased by 159% year over
year to $44 million
Raises full year 2021 Business Outlook and now
expects $1 billion to $1.02 billion of Net Revenue and $175 million
to $195 million of Adjusted EBITDA*
Yelp Inc. (NYSE: YELP), the company that connects people with
great local businesses, today posted its financial results for the
first quarter ended March 31, 2021 in the Q1 2021 Shareholder
Letter available on its Investor Relations website at www.yelp-ir.com.
“Yelp’s mission of connecting people with great local businesses
has never been more important, as local economies begin to recover
and people return to businesses in their community,” said Jeremy
Stoppelman, Yelp co-founder and CEO. “At the same time, our
strategic initiatives continued to gain momentum in the first
quarter, achieving record retention and revenue from our Services
categories and Self-serve channel. This progress reflects the
success of our increased focus on product innovation and more
efficient go-to-market approach, which together lay the foundation
for our next stage of growth, and positions us well in 2021 and
beyond.”
*Yelp has not reconciled its Adjusted EBITDA outlook to GAAP Net
income (loss) because it does not provide an outlook for GAAP Net
income (loss) due to the uncertainty and potential variability of
Other income, net and Provision for (benefit from) income taxes,
which are reconciling items between Adjusted EBITDA and GAAP Net
income (loss). Because Yelp cannot reasonably predict such items, a
reconciliation of the non-GAAP financial measure outlook to the
corresponding GAAP measure is not available without unreasonable
effort. We caution, however, that such items could have a
significant impact on the calculation of GAAP Net income (loss).
For more information regarding the non-GAAP financial measures
discussed in this release, please see “Non-GAAP Financial Measures”
below.
Quarterly Conference Call
Yelp will host a live Q&A session today at 2:00 p.m. Pacific
Time to discuss the first quarter financial results and outlook for
the second quarter and full year of 2021. The webcast of the
Q&A can be accessed on the Yelp Investor Relations website at
www.yelp-ir.com. A replay of the
webcast will be available at the same website.
About Yelp
Yelp Inc. (www.yelp.com) connects
people with great local businesses. With unmatched local business
information, photos, and review content, Yelp provides a one-stop
local platform for consumers to discover, connect, and transact
with local businesses of all sizes by making it easy to request a
quote, join a waitlist, and make a reservation, appointment, or
purchase. Yelp was founded in San Francisco in July 2004.
Yelp intends to make future announcements of material financial
and other information through its Investor Relations website. Yelp
will also, from time to time, disclose this information through
press releases, filings with the Securities and Exchange
Commission, conference calls, or webcasts, as required by
applicable law.
Forward-Looking Statements
This press release contains forward-looking statements relating
to, among other things, Yelp’s future performance, including Yelp’s
ability to deliver sustainable growth in 2021 and beyond, that are
based on its current expectations, forecasts, and assumptions that
involve risks and uncertainties.
Yelp’s actual results could differ materially from those
predicted or implied and reported results should not be considered
as an indication of future performance. Factors that could cause or
contribute to such differences include, but are not limited to:
- fluctuations in the number of COVID-19 cases, the pace at which
vaccinations are administered in the United States, and the
timeframe for the lifting of COVID-19-related shelter-in-place
orders and business restrictions;
- the pace of reopening and recovery by local economies and
economic recovery in the United States generally;
- Yelp’s ability to maintain and expand its base of advertisers,
particularly as many businesses reduce spending on advertising in
connection with COVID-19;
- Yelp’s ability to continue to operate effectively with a
primarily remote work force and attract and retain key talent;
- Yelp’s limited operating history in an evolving industry;
- Yelp’s ability to generate sufficient revenue to regain
profitability, particularly in light of the ongoing impact of
COVID-19 and Yelp’s relief initiatives; and
- Yelp’s ability to generate and maintain sufficient high-quality
content from its users.
YELP INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
March 31, 2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$
588,592
$
595,875
Accounts receivable, net
88,750
88,400
Prepaid expenses and other current
assets
26,004
28,450
Total current assets
703,346
712,725
Property, equipment and software, net
98,004
101,718
Operating lease right-of-use assets
161,967
168,209
Goodwill
106,914
109,261
Intangibles, net
12,806
13,521
Restricted cash
689
665
Other non-current assets
51,652
48,848
Total assets
$
1,135,378
$
1,154,947
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities
$
97,292
$
87,760
Operating lease liabilities — current
53,564
51,161
Deferred revenue
5,195
4,109
Total current liabilities
156,051
143,030
Operating lease liabilities —
long-term
144,238
148,935
Other long-term liabilities
7,989
8,448
Total liabilities
308,278
300,413
Stockholders' equity:
Common stock
—
—
Additional paid-in capital
1,428,890
1,398,248
Treasury stock
(3,313
)
(2,964
)
Accumulated other comprehensive loss
(9,559
)
(6,807
)
Accumulated deficit
(588,918
)
(533,943
)
Total stockholders' equity
827,100
854,534
Total liabilities and stockholders'
equity
$
1,135,378
$
1,154,947
YELP INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended March
31,
2021
2020
Net revenue
$
232,096
$
249,901
Costs and expenses:
Cost of revenue (1)
14,874
16,847
Sales and marketing (1)
112,909
137,297
Product development (1)
67,992
67,113
General and administrative (1)
31,861
43,536
Depreciation and amortization
13,083
12,358
Restructuring
20
—
Total costs and expenses
240,739
277,151
Loss from operations
(8,643
)
(27,250
)
Other income, net
705
2,383
Loss before income taxes
(7,938
)
(24,867
)
Benefit from income taxes
(2,142
)
(9,364
)
Net loss attributable to common
stockholders
$
(5,796
)
$
(15,503
)
Net loss per share attributable to common
stockholders
Basic
$
(0.08
)
$
(0.22
)
Diluted
$
(0.08
)
$
(0.22
)
Weighted-average shares used to compute
net loss per share attributable to common stockholders
Basic
75,245
71,548
Diluted
75,245
71,548
(1) Includes stock-based compensation
expense as follows:
Three Months Ended March
31,
2021
2020
Cost of revenue
$
1,108
$
1,043
Sales and marketing
8,397
7,696
Product development
20,753
17,755
General and administrative
8,987
5,256
Total stock-based compensation
$
39,245
$
31,750
YELP INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March
31,
2021
2020
Operating Activities
Net loss
$
(5,796
)
$
(15,503
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
13,083
12,358
Provision for doubtful accounts
3,289
15,933
Stock-based compensation
39,245
31,750
Noncash lease cost
10,779
10,378
Deferred income taxes
(2,406
)
(7,450
)
Other adjustments, net
14
(287
)
Changes in operating assets and
liabilities:
Accounts receivable
(3,639
)
5,024
Prepaid expenses and other assets
3,892
(4,118
)
Operating lease liabilities
(6,871
)
(6,663
)
Accounts payable, accrued liabilities and
other liabilities
7,341
(636
)
Net cash provided by operating
activities
58,931
40,786
Investing Activities
Sales and maturities of marketable
securities — available-for-sale
—
164,215
Purchases of marketable securities —
held-to-maturity
—
(87,438
)
Maturities of marketable securities —
held-to-maturity
—
93,200
Purchases of property, equipment and
software
(6,005
)
(7,053
)
Other investing activities
29
295
Net cash (used in) provided by investing
activities
(5,976
)
163,219
Financing Activities
Proceeds from issuance of common stock for
employee stock-based plans
6,049
2,585
Taxes paid related to the net share
settlement of equity awards
(16,803
)
(11,514
)
Repurchases of common stock
(49,528
)
—
Net cash used in financing activities
(60,282
)
(8,929
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
68
(486
)
Change in cash, cash equivalents and
restricted cash
(7,259
)
194,590
Cash, cash equivalents and restricted cash
— Beginning of period
596,540
192,318
Cash, cash equivalents and restricted cash
— End of period
$
589,281
$
386,908
Non-GAAP Financial Measures
This press release and statements made during the above
referenced webcast may include information relating to Adjusted
EBITDA and Adjusted EBITDA margin, each of which the Securities and
Exchange Commission has defined as a "non-GAAP financial
measure."
We define Adjusted EBITDA as net income (loss), adjusted to
exclude: provision for (benefit from) income taxes; other income,
net; depreciation and amortization; stock-based compensation
expense; and, in certain periods, certain other income and expense
items, such as restructuring costs. We define Adjusted EBITDA
margin as Adjusted EBITDA divided by net revenue.
Adjusted EBITDA, which is not prepared under any comprehensive
set of accounting rules or principles, has limitations as an
analytical tool and you should not consider it in isolation or as a
substitute for analysis of Yelp’s financial results as reported in
accordance with generally accepted accounting principles in the
United States (“GAAP”). In particular, Adjusted EBITDA should not
be viewed as a substitute for, or superior to, net income (loss)
prepared in accordance with GAAP as a measure of profitability or
liquidity. Some of these limitations are:
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future, and Adjusted EBITDA does not reflect all cash
capital expenditure requirements for such replacements or for new
capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, Yelp's working capital needs;
- Adjusted EBITDA does not reflect the impact of the recording or
release of valuation allowances or tax payments that may represent
a reduction in cash available to Yelp;
- Adjusted EBITDA does not consider the potentially dilutive
impact of equity-based compensation;
- Adjusted EBITDA does not take into account any income or costs
that management determines are not indicative of ongoing operating
performance, such as restructuring costs; and
- other companies, including those in Yelp’s industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness
as a comparative measure.
Because of these limitations, you should consider Adjusted
EBITDA and Adjusted EBITDA margin alongside other financial
performance measures, net income (loss) and Yelp’s other GAAP
results.
The following is a reconciliation of net loss to Adjusted
EBITDA, as well as the calculation of net loss margin and Adjusted
EBITDA margin, for each of the periods indicated (in thousands,
except percentages; unaudited):
Three Months Ended March
31,
2021
2020
Reconciliation of Net Loss to Adjusted
EBITDA:
Net loss
$
(5,796
)
$
(15,503
)
Benefit from income taxes
(2,142
)
(9,364
)
Other income, net
(705
)
(2,383
)
Depreciation and amortization
13,083
12,358
Stock-based compensation
39,245
31,750
Restructuring
20
—
Adjusted EBITDA
$
43,705
$
16,858
Net revenue
$
232,096
$
249,901
Net loss margin
(2
)%
(6
)%
Adjusted EBITDA margin
19
%
7
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006014/en/
Investor Relations Contact Kate Krieger ir@yelp.com
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