SAN FRANCISCO, May 2, 2012 /PRNewswire/ -- Yelp Inc. (NYSE:
YELP), the company that connects consumers with great local
businesses, today announced financial results for the first quarter
ended March 31, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
- Revenue was $27.4 million in the
first quarter of 2012, reflecting 66% growth in revenue from the
first quarter 2011
- Cumulative reviews grew 59% to 27.6 million
- Average monthly unique visitors grew 53% to 71.4 million*
- Active local business accounts grew 117% to 27,300
Net loss in the first quarter of 2012 was $(9.8) million or $(0.31) per share, compared to a net loss of
$(2.8) million, or $(0.19) per share, in the first quarter of 2011.
Adjusted EBITDA for the first quarter of 2012 was a loss of
approximately $1 million, compared to
a loss of $880,000 for the first
quarter of 2011.
"We are very pleased to report our first quarter as a public
company," said Jeremy Stoppelman,
Yelp's chief executive officer. "We were particularly excited to
launch 11 new Yelp markets in the first quarter, including
Sydney and Stockholm. With more than 80 Yelp cities
around the world today, consumers are yelping about their favorite
local businesses in record numbers and we look forward to continue
expanding our platform around the globe."
"Our initial public offering added $114
million to our balance sheet, adding strength to our
financial foundation as we look to continue investing in our rapid
growth and increase the value we deliver to our communities and
local businesses," added Rob Krolik,
Yelp's chief financial officer. "The number of active
business accounts has more than doubled year over year, and we have
seen engagement from local business owners increase proportionally
as they realize the positive economic impact that results when
business owners have a constructive dialogue with their
customers."
Business Highlights
- New market expansion: Yelp launched 11 new markets in
the first quarter, including Antwerp, Brussels, Oklahoma
City, Perth and Hampton
Beach, increasing the total active markets worldwide to 82.
- Yelp Mobile: Our mobile apps were used on
approximately 6.3 million unique mobile devices on a monthly
average basis for the quarter. Our development team released a
total of nine updates for Yelp's iPhone and Android apps in the
first quarter. Enhancements to the user experience included new
features such as the release of photo feedback, new search filters
(filter by what's hot/new and by businesses with deals) and the
ability to view business owner replies.
- Distribution partnerships: Mercedes and Lexus integrated
Yelp into their in-vehicle infotainment systems. Combined with
Yelp's BMW partnership announced in December, these relationships
underscore the value that Yelp content provides to consumers on the
go. OEMs are now working quickly to ensure that Yelp reviews are
within reach from the dashboard.
- Yelp for Business Owners: Yelp introduced a new set of
dashboard metrics to make Yelp's business owner accounts even more
insightful. The most notable improvement is the integration of
mobile metrics which enables a business owner to track how many
people placed a call to a business, mapped directions, purchased a
Yelp Deal and/or uploaded photos.
- Yelp Deals: Yelp Deals continues to grow. More than
25,000 businesses offered deals to their local community in the
first quarter.
Business Outlook
As of today, Yelp is initiating guidance for its second quarter
of 2012 and full year 2012 revenue and adjusted EBITDA
guidance.
- For the second quarter of 2012, revenue is expected to be in
the range of $29 million to $31
million. Adjusted EBITDA is expected to be a loss in the
range of $(500,000) to
$(800,000).
- For the full year of 2012, revenue is expected to be in the
range of $128 to $132 million,
representing growth of 54% to 58% compared to the full year of
2011. Adjusted EBITDA is expected to be breakeven to slightly
positive.
Quarterly Conference Call
Yelp will discuss its quarterly results today via teleconference
at 1:30 p.m. Pacific Time
(4:30 p.m. Eastern Time). To
access the call, please dial (866) 202-4367, or outside the U.S.
(617) 213-8845, with Passcode 20131940, at least five minutes prior
to the 1:30 p.m. PT start time. A
live webcast of the call will also be available at
http://www.yelp-ir.com under the Events & Presentations menu.
An audio replay will be available between 3:30 p.m. PT May 2,
2012 and 11:59 p.m. PT
May 9, 2012 by calling (888) 286-8010
or (617) 801-6888, with Passcode 75247748. The replay will also be
available on the Company's website at http://www.yelp-ir.com.
About Yelp
Yelp connects people with great local businesses. Yelp was
founded in San Francisco in
July 2004. Since then, Yelp
communities have taken root in major metros across the US,
Canada, UK, Ireland, France, Germany, Austria, The
Netherlands, Spain,
Italy, Switzerland, Belgium, Australia, Sweden and Denmark. Yelp had a monthly average of 71.4
million unique visitors in Q1 2012*. By the end of March 2012, Yelpers had written more than 27
million rich, local reviews, making Yelp the leading local guide
for real word-of-mouth on everything from boutiques and mechanics
to restaurants and dentists. On average, Yelp's mobile
applications were used on 6.3 million unique mobile devices per
month in the in first quarter of 2012, helping users make spending
decisions on-the-go. For more information, please visit
http://www.yelp.com/ or send an email to press@yelp.com.
*Source: Google Analytics
Non-GAAP Financial Measures
This press release includes the following financial measure
defined as "non-GAAP financial measures" by the Securities and
Exchange Commission, or SEC: adjusted EBITDA. Adjusted EBITDA has
been included in this press release because it is a key measure
used by the Company's management and board of directors to
understand and evaluate core operating performance and trends, to
prepare and approve its annual budget and to develop short- and
long-term operational plans. The presentation of this financial
information, which is not prepared under any comprehensive set of
accounting rules or principles, is not intended to be considered in
isolation or as a substitute for the financial information prepared
and presented in accordance with generally accepted accounting
principles.
Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of the Company's results as reported under GAAP. 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 cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements;
- adjusted EBITDA does not reflect changes in, or cash
requirements for, the Company's working capital needs;
- adjusted EBITDA does not consider the potentially dilutive
impact of equity-based compensation;
- adjusted EBITDA does not reflect tax payments that may
represent a reduction in cash available to us; and
- other companies, including companies in the Company's industry,
may calculate adjusted EBITDA differently, which reduces its
usefulness as a comparative measure.
Because of these limitations, you should consider adjusted
EBITDA alongside other financial performance measures, including
various cash flow metrics, net income (loss) and the Company's
other GAAP results. Additionally, the Company has not reconciled
adjusted EBITDA guidance to net income guidance because it does not
provide guidance for other income (expense) and provision for
income taxes, which are reconciling items between net income (loss)
and adjusted EBITDA. As items that impact net income (loss) are out
of the Company's control and/or cannot be reasonably predicted, the
Company is unable to provide such guidance. Accordingly,
reconciliation to net income (loss) is not available without
unreasonable effort. For a reconciliation of historical
non-GAAP financial measures to the nearest comparable GAAP
measures, see "Reconciliation of Net Loss to Adjusted EBITDA"
included in this press release.
Forward-Looking Statements
This press release contains forward-looking statements relating
to, among other things, the future performance of Yelp and its
consolidated subsidiaries that are based on the Company's current
expectations, forecasts and assumptions and involve risks and
uncertainties. These statements include, but are not limited to,
statements regarding expected financial results for the second
quarter and full year 2012, the future growth in Company revenue
and continued investing by the Company in its future growth. The
Company'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: the
Company's short operating history in an evolving industry; the
Company's ability to generate sufficient revenue to achieve or
maintain profitability, particularly in light of its significant
ongoing sales and marketing expenses; the Company's reliance on
traffic to its website from search engines like Google, Yahoo! and
Bing; the Company's ability to generate and maintain sufficient
high quality content from its users; maintaining a strong brand and
managing negative publicity that may arise; maintaining and
expanding the Company's base of advertisers; the price volatility
of the Company's Class A common stock, including in connection
with the expiration of any restrictions on trading in the Company's
stock; changes in political, business and economic conditions,
including any European or general economic downturn or crisis and
any conditions that affect ecommerce growth; fluctuations in
foreign currency exchange rates; the Company's ability to
deal with the increasingly competitive local search environment;
the Company's need and ability to manage other regulatory, tax and
litigation risks as its services are offered in more jurisdictions
and applicable laws become more restrictive; the competitive and
regulatory environment while the Company continues to expand
geographically and introduce new products and as new laws and
regulations related to Internet companies come into effect; and the
Company's ability to timely upgrade and develop its systems,
infrastructure and customer service capabilities. The
forward-looking statements in this release do not include the
potential impact of any acquisitions or divestitures that may be
announced and/or completed after the date hereof.
More information about factors that could affect the company's
operating results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's prospectus included in its
Registration Statement on Form S-1, as amended, copies of
which may be obtained by visiting the Company's Investor Relations
website at
http://www.yelp-ir.com/phoenix.zhtml?c=250809&p=irol-irhome or
the SEC's website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which are
based on information available to the Company on the date hereof.
Yelp assumes no obligation to update such statements. The results
we report in our Quarterly Report on Form 10-Q for the three months
ended March 31, 2012 could differ
from the preliminary results we have announced in this press
release.
Media Contact Information
Yelp Press Office
Stephanie Ichinose
(415) 908-3679
stephanie@yelp.com
Investor Relations Contact Information
The Blueshirt Group
Todd Friedman, Stacie Bosinoff, Nicole
Gunderson
(415) 217-7722
yelp@blueshirtgroup.com
Yelp
Inc.
|
Condensed Consolidated Balance
Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December 31,
|
|
|
2012
|
|
|
2011
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
130,737
|
|
|
$
21,736
|
Accounts
receivable, net
|
|
7,179
|
|
|
8,257
|
Prepaid
expenses and other current assets
|
|
2,508
|
|
|
1,733
|
Total
current assets
|
|
140,424
|
|
|
31,726
|
Property,
equipment and software, net
|
|
10,649
|
|
|
9,881
|
Restricted
cash
|
|
1,497
|
|
|
365
|
Other
assets
|
|
517
|
|
|
1,849
|
Total
assets
|
|
$
153,087
|
|
|
$
43,821
|
|
|
|
|
|
|
Liabilities, redeemable convertible preferred
stock and stockholders' equity (deficit)
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
3,441
|
|
|
$
2,973
|
Accrued
liabilities
|
|
8,030
|
|
|
7,685
|
Deferred
revenue
|
|
999
|
|
|
2,072
|
Total
current liabilities
|
|
12,470
|
|
|
12,730
|
Long-term
liabilities
|
|
3
|
|
|
3
|
Total
liabilities
|
|
12,473
|
|
|
12,733
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
preferred stock
|
|
-
|
|
|
55,435
|
|
|
|
|
|
|
Stockholders' equity (deficit)
|
|
|
|
|
|
Common
stock
|
|
-
|
|
|
-
|
Additional
paid-in capital
|
|
191,448
|
|
|
16,625
|
Accumulated other comprehensive income
(loss)
|
|
242
|
|
|
271
|
Accumulated deficit.
|
|
(51,076)
|
|
|
(41,243)
|
Total
stockholders' equity (deficit)
|
|
140,614
|
|
|
(24,347)
|
Total
liabilities, redeemable convertible preferred stock and
stockholders' equity
|
|
$
153,087
|
|
|
$
43,821
|
|
|
|
|
|
|
Yelp
Inc.
|
|
Condensed Consolidated Statements of
Operations
|
|
(In
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Net
revenue
|
|
$
27,385
|
|
$
16,500
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
Cost of
revenue (1)
|
|
2,126
|
|
1,276
|
|
Sales and
marketing (1)
|
|
18,770
|
|
11,271
|
|
Product
development (1)
|
|
4,140
|
|
2,319
|
|
General
and administrative (1)
|
|
10,729
|
|
3,617
|
|
Depreciation and amortization
|
|
1,361
|
|
819
|
|
|
|
|
|
|
|
Total cost
and expenses
|
|
37,126
|
|
19,302
|
|
Loss from
operations
|
|
(9,741)
|
|
(2,802)
|
|
Other
expense, net
|
|
(30)
|
|
108
|
|
Loss
before provision for income taxes
|
|
(9,771)
|
|
(2,694)
|
|
Provision
for income taxes
|
|
(31)
|
|
(12)
|
|
Net
loss
|
|
(9,802)
|
|
(2,706)
|
|
Accretion
of redeemable convertible preferred stock
|
|
(31)
|
|
(47)
|
|
Net loss
attributable to common stockholders
|
|
$
(9,833)
|
|
$
(2,753)
|
|
|
|
|
|
|
|
Net loss
per share attributable to common stockholders:
|
|
|
|
|
|
Basic
|
|
$
(0.31)
|
|
$
(0.19)
|
|
Diluted
|
|
(0.31)
|
|
$
(0.19)
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net loss per
share attributable to common stockholders:
|
|
|
|
Basic
|
|
31,263
|
|
14,553
|
|
Diluted.
|
|
31,263
|
|
14,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Cost of
revenue
|
|
$
23
|
|
$
9
|
|
Sales and
marketing
|
|
1,124
|
|
271
|
|
Research
and development
|
|
243
|
|
147
|
|
General
and administrative
|
|
6,039
|
|
676
|
|
Total
stock-based compensation
|
|
$
7,429
|
|
$
1,103
|
|
|
|
|
|
|
|
Yelp
Inc.
|
Condensed Consolidated Statements of Cash
Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2012
|
|
2011
|
Operating activities
|
|
|
|
|
Net
loss
|
|
$
(9,802)
|
|
$
(2,706)
|
Adjustments to reconcile net income
(loss) to net
|
|
|
|
|
cash
(used in) provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
1,361
|
|
819
|
Provision
for doubtful accounts
|
|
(10)
|
|
(65)
|
Stock-based compensation
|
|
7,429
|
|
1,103
|
Loss on
disposal of assets and web-site development costs
|
|
1
|
|
5
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
1,090
|
|
577
|
Prepaid
expenses and other assets
|
|
(552)
|
|
129
|
Accounts
payable and accrued expenses
|
|
(1,217)
|
|
750
|
Deferred
revenue
|
|
(1,073)
|
|
384
|
Net cash
(used in) provided by operating activities
|
|
(2,773)
|
|
996
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Purchases
of property, equipment and software
|
|
(367)
|
|
(813)
|
Capitalized website and software development
costs
|
|
(612)
|
|
(537)
|
Change in
restricted cash
|
|
(1,112)
|
|
-
|
Cash used
in investing activities
|
|
(2,091)
|
|
(1,350)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Proceeds
from initial public offering, net of offering costs
|
|
113,407
|
|
-
|
Proceeds
from issuance of common stock
|
|
511
|
|
161
|
Net cash
provided in financing activities
|
|
113,918
|
|
161
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
(53)
|
|
(116)
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
109,001
|
|
(309)
|
Cash and
cash equivalents at beginning of period
|
|
21,736
|
|
27,074
|
Cash and
cash equivalents at end of period
|
|
$
130,737
|
|
$
26,765
|
|
|
|
|
|
Yelp
Inc.
|
Reconciliation of Net Loss to
EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
Net
loss
|
|
$
(9,802)
|
|
$
(2,706)
|
Provision
for income taxes
|
|
31
|
|
12
|
Other
income (expense), net
|
|
30
|
|
(108)
|
Depreciation and amortization
|
|
1,361
|
|
819
|
EBITDA
|
|
(8,380)
|
|
(1,983)
|
Stock-based compensation
|
|
7,429
|
|
1,103
|
Adjusted
EBITDA
|
|
$
(951)
|
|
$
(880)
|
|
|
|
|
|
SOURCE Yelp! Inc.