SAN FRANCISCO, May 1, 2013 /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, 2013.
(Logo:
http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
- Net revenue was $46.1 million in
the first quarter of 2013, reflecting 68% growth in net revenue
from the first quarter of 2012
- Cumulative reviews grew 42% year over year to more than 39
million
- Average monthly unique visitors grew 43% year over year to
approximately 102 million*
- Active local business accounts grew 63% year over year to
approximately 45 thousand
Net loss in the first quarter of 2013 was $4.8 million, or $0.08 per share, compared to a net loss of
$9.8 million, or $0.31 per share, in the first quarter of 2012.
Adjusted EBITDA for the first quarter of 2013 was $3.2 million compared to an adjusted
EBITDA loss of approximately $1
million for the first quarter of 2012.
"We had a great start to the year and are excited about the
large opportunity in front of us," said Jeremy Stoppelman, Yelp's chief executive
officer. "This quarter we achieved many milestones including a
record 102 million unique visitors on a monthly average basis,
demonstrating the strength of our content and the trust we have
earned from consumers. We provide valuable leads to local
businesses because consumers turn to Yelp at the critical point
when they are making purchase decisions. Looking to the rest
of the year, we will continue to focus our product innovation
around the mobile experience and new features to better serve the
consumer and local business owners, and we will continue
integrating Qype into the Yelp platform."
"We achieved record results in our financial and operating
metrics, highlighted by revenue growth accelerating to 68% over
last year," added Rob Krolik, Yelp's
chief financial officer. "We saw record quarterly increases
in absolute numbers in both the number of businesses that claimed
their Yelp page and the increase in the number of paying local
advertisers. This demonstrates the strength in the Yelp playbook
and gives us confidence in our strategy going forward as we
continue to invest."
Business Highlights
- Yelp mobile: Yelp continues to execute on its
mobile strategy. In the first quarter, 36% of local ads were shown
on mobile devices. The mobile app was used on approximately 10
million unique mobile devices on a monthly average basis for the
quarter. Additionally, Yelp launched display ads on mobile in the
first quarter.
- Closing the loop with businesses: Yelp is driving
real revenue to local businesses. A study by the Boston
Consulting Group showed that a business saw an average annual
revenue lift of $8,000 just by
claiming their free business owner account on Yelp. Additionally,
the study found that businesses that advertise on Yelp see an
average annual revenue lift of $23,000. Yelp launched a revenue estimator tool
on the business dashboard to help businesses easily calculate the
value of the customer leads sent from Yelp.
- Increasing content: Yelp continues to
innovate around creating meaningful content and improving the user
experience. At the urging of the White House and in
conjunction with local governments, Yelp has developed an open data
standard (LIVES) to add health inspection scores to restaurant
business pages with the first roll out in San Francisco.
Business Outlook
As of today, Yelp is providing guidance for the second quarter
and full year of 2013.
- For the second quarter of 2013, net revenue is expected to be
in the range of $52.5 million –
$53.5 million representing growth of
approximately 62% compared to the second quarter of 2012. Adjusted
EBITDA is expected to be in the range of $4.5 million -$5.0 million.
- For the full year of 2013, net revenue is expected to be in the
range of $216 million - $218 million,
representing growth of approximately 58% compared to the full year
of 2012. Adjusted EBITDA is expected to be in the range of
$21 million - $23 million.
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 1 (800) 446-2782, or outside the U.S.
1 (847) 413-3235, with Passcode 34628941, 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 4:00 p.m. PT May 1,
2013 and 11:59 p.m. PT
May 15, 2013 by calling 1 (888)
843-7419 or 1 (630) 652-3042, with Passcode 34628941#. The replay
will also be available on the Company's website at
http://www.yelp-ir.com.
About Yelp
Yelp Inc. (http://www.yelp.com) 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
U.S., Canada, UK, Ireland, France, Germany, Austria, The
Netherlands, Spain,
Italy, Switzerland, Belgium, Australia, Sweden, Denmark, Norway, Finland, Singapore, Poland, Turkey, and New Zealand. Yelp had a monthly average of
approximately 102 million unique visitors in the first quarter
2013*. By the end of the same quarter, Yelpers had written more
than 39 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. Yelp's mobile applications
were used on approximately 10 million unique mobile devices on a
monthly average basis during the first quarter 2013.
*Source: Google Analytics
Non-GAAP Financial Measures
This press release includes information relating to Adjusted
EBITDA, which the Securities and Exchange Commission has defined as
a "non-GAAP financial measures." 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 generally accepted
accounting principles in the United
States ("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;
- adjusted EBITDA does not take into account restructuring and
integration costs associated with our acquisition of Qype; and
- other companies, including those 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 (loss) 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) outlook for the
second quarter and full year 2013 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 2013, the future growth in Company revenue
and continued investing by the Company in its future growth, the
Company's ability to build Yelp communities internationally and
expand its markets and presence in existing markets, plans
regarding product innovation around the mobile and new features,
and continued integration of Qype into the Yelp platform. 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 ability to
successfully manage acquisitions of new businesses, solutions or
technologies, including Qype; the Company's reliance on traffic to
its website from search engines like Google, Bing and Yahoo!; 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; 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; 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 most recent Quarterly
Report on Form 10-Q at http://www.yelp-ir.com 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, 2013 could differ
from the preliminary results we have announced in this press
release.
Media Contact Information
Yelp Press Office
Vince Sollitto
(415) 230-6506
vince@yelp.com
Investor Relations Contact Information
The Blueshirt
Group
Stacie Bosinoff, Nicole Gunderson
(415) 217-7722
yelp@blueshirtgroup.com
Yelp
Inc.
|
Condensed Consolidated Balance
Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
94,498
|
|
$
95,124
|
Accounts
receivable, net
|
|
12,327
|
|
11,738
|
Prepaid
expenses and other current assets
|
|
6,880
|
|
4,912
|
Total
current assets
|
|
113,705
|
|
111,774
|
|
|
|
|
|
Property,
equipment and software, net
|
|
15,772
|
|
14,799
|
Goodwill
|
|
45,993
|
|
48,605
|
Intangibles, net
|
|
5,183
|
|
5,936
|
Restricted
cash
|
|
6,332
|
|
6,400
|
Other
assets
|
|
309
|
|
182
|
Total
assets
|
|
$
187,294
|
|
$
187,696
|
|
|
|
|
|
Liabilities and stockholders' equity
(deficit)
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
3,020
|
|
$
2,284
|
Accrued
liabilities
|
|
15,153
|
|
16,367
|
Deferred
revenue
|
|
3,086
|
|
2,856
|
Total
current liabilities
|
|
21,259
|
|
21,507
|
Long-term
liabilities
|
|
601
|
|
527
|
Total
liabilities
|
|
21,860
|
|
22,034
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit)
|
|
|
|
|
Common
stock
|
|
-
|
|
-
|
Additional
paid-in capital
|
|
231,525
|
|
225,245
|
Accumulated other comprehensive income
(loss)
|
|
(904)
|
|
805
|
Accumulated deficit
|
|
(65,187)
|
|
(60,388)
|
Total
stockholders' equity (deficit)
|
|
165,434
|
|
165,662
|
Total
liabilities and stockholders' equity (deficit)
|
|
$
187,294
|
|
$
187,696
|
Condensed Consolidated Statements of
Operations
|
(In
thousands, except per share amounts)
|
(Unaudited)
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Net
revenue
|
|
$
46,133
|
|
$
27,385
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
Cost of
revenue (1)
|
|
3,340
|
|
2,126
|
Sales and
marketing (1)
|
|
28,194
|
|
18,770
|
Product
development (1)
|
|
7,236
|
|
4,140
|
General
and administrative (1)
|
|
8,764
|
|
10,729
|
Depreciation and amortization
|
|
2,478
|
|
1,361
|
Restructuring and integration costs (1)
|
|
675
|
|
-
|
|
|
|
|
|
Total cost
and expenses
|
|
50,687
|
|
37,126
|
Loss from
operations
|
|
(4,554)
|
|
(9,741)
|
Other
expense, net
|
|
(201)
|
|
(30)
|
Loss
before provision for income taxes
|
|
(4,755)
|
|
(9,771)
|
Provision
for income taxes
|
|
(44)
|
|
(31)
|
Net
loss
|
|
(4,799)
|
|
(9,802)
|
Accretion
of redeemable convertible preferred stock
|
|
-
|
|
(31)
|
Net loss
attributable to common stockholders
|
|
$
(4,799)
|
|
$
(9,833)
|
|
|
|
|
|
Net loss
per share attributable to common stockholders:
|
|
|
|
|
Basic
|
|
$
(0.08)
|
|
$
(0.31)
|
Diluted
|
|
(0.08)
|
|
(0.31)
|
|
|
|
|
|
Weighted-average shares used to compute net loss per
share attributable to common stockholders:
|
Basic
|
|
63,733
|
|
31,263
|
Diluted
|
|
63,733
|
|
31,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes stock-based compensation expense as follows:
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
Cost of
revenue
|
|
$
72
|
|
$
23
|
Sales and
marketing
|
|
1,988
|
|
1,124
|
Research
and development
|
|
816
|
|
243
|
General
and administrative
|
|
1,729
|
|
6,039
|
Restructuring and integration costs
|
|
555
|
|
-
|
Yelp
Inc.
|
Condensed Consolidated Statements of Cash
Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
Operating activities
|
|
|
|
|
Net
loss
|
|
$
(4,799)
|
|
$
(9,802)
|
Adjustments to reconcile net income
(loss) to net cash (used in) provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
2,478
|
|
1,361
|
Provision
for doubtful accounts and sales return reserve
|
|
551
|
|
(10)
|
Stock-based compensation
|
|
5,160
|
|
7,429
|
Loss on
disposal of assets and web-site development costs
|
|
50
|
|
1
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(1,471)
|
|
1,090
|
Prepaid
expenses and other assets
|
|
(2,422)
|
|
(552)
|
Accounts
payable and accrued expenses
|
|
509
|
|
(1,217)
|
Deferred
revenue
|
|
194
|
|
(1,073)
|
Net cash
(used in) provided by operating activities
|
|
250
|
|
(2,773)
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Purchases
of property, equipment and software
|
|
(947)
|
|
(367)
|
Capitalized website and software development
costs
|
|
(969)
|
|
(612)
|
Change in
restricted cash
|
|
|
|
(1,112)
|
Cash used
in investing activities
|
|
(1,916)
|
|
(2,091)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Proceeds
from initial public offering, net of offering costs
|
|
-
|
|
113,407
|
Proceeds
from issuance of common stock
|
|
1,657
|
|
511
|
Net cash
provided in financing activities
|
|
1,657
|
|
113,918
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
|
(617)
|
|
(53)
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
(626)
|
|
109,001
|
Cash and
cash equivalents at beginning of period
|
|
95,124
|
|
21,736
|
Cash and
cash equivalents at end of period
|
|
$
94,498
|
|
$
130,737
|
Yelp
Inc.
|
Reconciliation of Net Loss to Adjusted
EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Net
loss
|
|
$
(4,799)
|
|
$
(9,802)
|
Provision
for income taxes
|
|
44
|
|
31
|
Other
income (expense), net
|
|
201
|
|
30
|
Depreciation and amortization
|
|
2,478
|
|
1,361
|
EBITDA
|
|
(2,076)
|
|
(8,380)
|
Stock-based compensation*
|
|
4,605
|
|
7,429
|
Restructuring and integration costs
|
|
675
|
|
-
|
Adjusted
EBITDA
|
|
$
3,204
|
|
$
(951)
|
|
|
|
|
|
*
Stock-based compensation for the three months ended March 31, 2013
excludes approximately $0.6
million of stock-based compensation already included in
restructuring and integration costs.
|
SOURCE Yelp Inc.