SAN FRANCISCO, July 31, 2013 /PRNewswire/ -- Yelp Inc.
(NYSE: YELP), the company that connects consumers with great local
businesses, today announced financial results for the second
quarter ended June 30, 2013.
- Net revenue was $55.0 million in
the second quarter of 2013, reflecting 69% growth in net revenue
from the second quarter of 2012
- Cumulative reviews grew 41% year over year to more than 42.5
million
- Average monthly unique visitors grew 38% year over year to
approximately 108 million*
- Active local business accounts grew 62% year over year to
approximately 51,400
(Logo:
http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
Net loss in the second quarter of 2013 was ($878,000) or $(0.01) per share, compared to a net loss of
$(2.0) million, or $(0.03) per share, in the second quarter of 2012.
Adjusted EBITDA for the second quarter of 2013 was approximately
$7.8 million, compared to
$1.6 million for the second quarter
of 2012.
"We had a great second quarter with strong execution in all
areas of our business as the Yelp brand becomes increasingly
prevalent around the world," said Jeremy
Stoppelman, Yelp's chief executive officer. "In the
second quarter, we launched new features on the mobile app and
created a Call to Action feature, yet another way for us to close
the loop between consumers and local businesses. As we look
to the rest of the year, we will continue to focus on driving
innovation in mobile, integrating Qype, and closing the loop with
local businesses."
"We are very pleased with our performance this quarter, with
revenue growth accelerating to 69% year over year," added
Rob Krolik, Yelp's chief financial
officer. "This was driven by record results across all our key
financial and operating metrics. We also saw considerable leverage
in our business model with nearly a 400% increase in adjusted
EBITDA as compared to last year."
Net revenue for the six months ended June
30, 2013 was $101.2 million,
an increase of 68% compared to $60.0
million in the same period last year. Net loss for the
six months ended June 30, 2013 was
$(5.7) million, or $(0.09) per share, compared to a net loss of
$(11.8) million, or $(0.26) per share, in the comparable period in
2012. Adjusted EBITDA for the first six months of this year
was approximately $11.0 million
compared to $630,000 for the first
six months last year.
Business Highlights
- Yelp mobile: Yelp mobile continues to grow
rapidly. In the second quarter, approximately 40% of local
ads were shown on mobile devices, and approximately 59% of searches
were on mobile, including mobile web and app. Additionally,
Yelp launched a number of mobile upgrades including the Nearby
feature which suggests businesses and activities based on location,
behavior, friends' activities, and other data.
- Closing the loop with businesses: A recent study
by Nielsen found when consumers find a local business on Yelp, 89%
make a purchase within a week of visiting Yelp. To help
businesses close the loop with these consumers, Yelp launched the
Call to Action feature that allows advertisers to promote a desired
transaction directly on their Yelp business listing. In July,
we launched Yelp Platform which enables consumers to transact with
businesses directly on Yelp.
- New markets: Yelp integrated Qype content and traffic
from Spain and Italy and launched six new Yelp Markets,
including two domestically and four internationally.
- SeatMe: In July, Yelp acquired SeatMe, a web
and iPad-app based reservation solution for the restaurant and
nightlife categories. With SeatMe's solution, more local
restaurants and bars can provide an easy way for customers to book
online reservations, enhancing the consumer experience for those
who discover a great local business on Yelp.
Business Outlook
As of today, Yelp is initiating guidance for its third quarter
of 2013 and raising its full year 2013 revenue and adjusted EBITDA
guidance.
- For the third quarter of 2013, net revenue is expected to be in
the range of $58 million to $59
million. Adjusted EBITDA is expected to be in the
range of $7.5 to $8.0 million.
- For the full year of 2013, net revenue is expected to be in the
range of $222 million to $224
million, representing growth of approximately 62% compared
to the full year of 2012. Adjusted EBITDA is expected to be
in the range of $27 million to $28
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) 447-0521, or outside the U.S.
1 (847) 413-3238, with Passcode 35182252, 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 July 31,
2013 and 11:59 p.m. PT
August 14, 2013 by calling 1 (888)
843-7419 or 1 (630) 652-3042, with Passcode 35182252#. 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, New
Zealand and the Czech
Republic. Yelp had a monthly average of approximately 108
million unique visitors in the second quarter 2013*. By the end of
the same quarter, Yelpers had written more than 42.5 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 10.4 million unique mobile devices on a monthly
average basis during the second 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 in the United States
("GAAP").
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;
- 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 for the third quarter and full year 2013
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 third 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 third
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 Yelp Platform, mobile and new
features, and continued integration of Qype into Yelp. 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 and SeatMe, and to integrate those
businesses, solutions or technologies; 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 June 30, 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
press@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)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2013
|
|
2012
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
96,795
|
|
$
95,124
|
Accounts receivable,
net
|
14,769
|
|
11,738
|
Prepaid expenses and
other current assets
|
6,441
|
|
4,912
|
Total current
assets
|
118,005
|
|
111,774
|
|
|
|
|
Property, equipment
and software, net
|
19,779
|
|
14,799
|
Goodwill
|
46,678
|
|
48,605
|
Intangibles,
net
|
4,716
|
|
5,936
|
Restricted
cash
|
8,102
|
|
6,400
|
Other
assets
|
262
|
|
182
|
Total
assets
|
$ 197,542
|
|
$
187,696
|
|
|
|
|
Liabilities,
redeemable convertible preferred stock, and stockholders' equity
(deficit)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
1,929
|
|
$
2,284
|
Accrued
liabilities
|
17,689
|
|
16,367
|
Deferred
revenue
|
2,739
|
|
2,856
|
Total current
liabilities
|
22,357
|
|
21,507
|
Long-term
liabilities
|
688
|
|
527
|
Total
liabilities
|
23,045
|
|
22,034
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit)
|
|
|
|
Common
stock
|
-
|
|
-
|
Additional paid-in
capital
|
240,752
|
|
225,245
|
Accumulated other
comprehensive income
|
(190)
|
|
805
|
Accumulated
deficit
|
(66,065)
|
|
(60,388)
|
Total stockholders'
equity (deficit)
|
174,497
|
|
165,662
|
Total liabilities,
redeemable convertible preferred stock, and stockholders' equity
(deficit)
|
$
197,542
|
|
$
187,696
|
Yelp
Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
(In thousands, except
per share amounts)
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net
revenue
|
$ 55,023
|
|
$ 32,653
|
|
$ 101,156
|
|
$
60,038
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of revenue
(1)
|
4,018
|
|
2,298
|
|
7,358
|
|
4,424
|
Sales and marketing
(1)
|
30,803
|
|
20,333
|
|
58,997
|
|
39,103
|
Product development
(1)
|
7,997
|
|
4,336
|
|
15,233
|
|
8,476
|
General and
administrative (1)
|
10,148
|
|
5,963
|
|
18,912
|
|
16,692
|
Depreciation and
amortization
|
2,637
|
|
1,661
|
|
5,115
|
|
3,022
|
Restructuring and
integration
|
-
|
|
-
|
|
675
|
|
-
|
|
|
|
|
|
|
|
|
Total cost and
expenses
|
55,603
|
|
34,591
|
|
106,290
|
|
71,717
|
Loss from
operations
|
(580)
|
|
(1,938)
|
|
(5,134)
|
|
(11,679)
|
Other income
(expense), net
|
(66)
|
|
22
|
|
(267)
|
|
(8)
|
Loss before provision
for income taxes
|
(646)
|
|
(1,916)
|
|
(5,401)
|
|
(11,687)
|
Provision for income
taxes
|
(232)
|
|
(66)
|
|
(276)
|
|
(97)
|
Net loss
|
(878)
|
|
(1,982)
|
|
(5,677)
|
|
(11,784)
|
Accretion of
redeemable convertible preferred stock
|
-
|
|
-
|
|
-
|
|
(31)
|
Net loss attributable
to common stockholders
|
$
(878)
|
|
$ (1,982)
|
|
$
(5,677)
|
|
$ (11,815)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.09)
|
|
$
(0.26)
|
Diluted
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.09)
|
|
$
(0.26)
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share attributable to common
stockholders:
|
Basic
|
64,576
|
|
60,887
|
|
64,163
|
|
46,075
|
Diluted
|
64,576
|
|
60,887
|
|
64,163
|
|
46,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Cost of
revenue
|
$
105
|
|
$
35
|
|
$
177
|
|
$
58
|
Sales and
marketing
|
2,282
|
|
895
|
|
4,270
|
|
2,019
|
Research and
development
|
1,040
|
|
300
|
|
1,856
|
|
543
|
General and
administrative
|
2,286
|
|
628
|
|
4,015
|
|
6,667
|
Restructuring and
integration
|
-
|
|
-
|
|
555
|
|
-
|
Total stock-based
compensation
|
$
5,713
|
|
$
1,858
|
|
$
10,873
|
|
$
9,287
|
Yelp
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
Six Months
Ended
|
|
June
30,
|
|
2013
|
|
2012
|
Operating
activities
|
|
|
|
Net loss
|
$ (5,677)
|
|
$ (11,784)
|
Adjustments to
reconcile net loss to net
|
|
|
|
cash provided
by (used in) operating activities:
|
|
|
|
Depreciation and
amortization
|
5,115
|
|
3,022
|
Provision for
doubtful accounts
|
1,301
|
|
108
|
Stock-based
compensation
|
10,873
|
|
9,287
|
Loss on disposal of
assets and web-site development costs
|
94
|
|
37
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(4,404)
|
|
(1,973)
|
Prepaid expenses and
other assets
|
(2,318)
|
|
(918)
|
Accounts payable and
accrued expenses
|
215
|
|
577
|
Deferred
revenue
|
(85)
|
|
(796)
|
Net cash provided by
(used in) operating activities
|
5,114
|
|
(2,440)
|
|
|
|
|
Investing
activities
|
|
|
|
Purchases of
property, equipment and software
|
(4,966)
|
|
(1,927)
|
Capitalized website
and software development costs
|
(2,139)
|
|
(1,590)
|
Change in restricted
cash
|
(1,768)
|
|
(6,008)
|
Goodwill measurement
period adjustment
|
1,153
|
|
-
|
Cash used in
investing activities
|
(7,720)
|
|
(9,525)
|
|
|
|
|
Financing
activities
|
|
|
|
Proceeds from initial
public offering, net of offering costs
|
-
|
|
112,257
|
Proceeds from
issuance of common stock
|
4,604
|
|
762
|
Repurchase of common
stock
|
(193)
|
|
-
|
|
|
|
|
Net cash provided by
financing activities
|
4,411
|
|
113,019
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(134)
|
|
(177)
|
|
|
|
|
Net increase in cash
and cash equivalents
|
1,671
|
|
100,877
|
Cash and cash
equivalents at beginning of period
|
95,124
|
|
21,736
|
Cash and cash
equivalents at end of period
|
$
96,795
|
|
$ 122,613
|
Yelp
Inc.
|
|
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
|
|
(In
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net loss
|
$
(878)
|
|
$ (1,982)
|
|
$ (5,677)
|
|
$ (11,784)
|
Provision for income
taxes
|
232
|
|
66
|
|
276
|
|
97
|
Other income
(expense), net
|
66
|
|
(22)
|
|
267
|
|
8
|
Depreciation and
amortization
|
2,637
|
|
1,661
|
|
5,115
|
|
3,022
|
Stock-based
compensation
|
5,713
|
|
1,858
|
|
10,318
|
|
9,287
|
Restructuring and
integration costs
|
-
|
|
-
|
|
675
|
|
-
|
Adjusted
EBITDA
|
$ 7,770
|
|
$
1,581
|
|
$ 10,974
|
|
$
630
|
SOURCE Yelp Inc.