SAN FRANCISCO, Feb. 5, 2014 /PRNewswire/ -- Yelp Inc.
(NYSE: YELP), the company that connects consumers with great local
businesses, today announced financial results for the fourth
quarter ended December 31, 2013.
(Logo:
http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
- Net revenue was $70.7 million in
the fourth quarter of 2013, reflecting 72% growth from the fourth
quarter of 2012
- Cumulative reviews grew 47% year over year to approximately 53
million
- Average monthly unique visitors grew 39% year over year to
approximately 120 million*
- Active local business accounts grew 69% year over year to
approximately 67 thousand
Net loss in the fourth quarter of 2013 was $(2.1) million, or $(0.03) per share, compared to a net loss of
$(5.3) million, or $(0.08) per share, in the fourth quarter of
2012. Adjusted EBITDA for the fourth quarter of 2013 was
approximately $10.4 million, compared
to $1.8 million for the fourth
quarter of 2012.
Net revenue for the full year ended December 31, 2013 was $233.0 million, an increase of 69% compared to
$137.6 million in 2012. Net
loss for the full year ended December 31,
2013 was $(10.1) million, or
$(0.15) per share, compared to a net
loss of $(19.1) million, or
$(0.35) per share, for 2012.
Adjusted EBITDA for the full year 2013 was approximately
$29.4 million compared to Adjusted
EBITDA of $4.6 million for the prior
year.
"2013 was an outstanding year for Yelp," said Jeremy Stoppelman, Yelp's chief executive
officer. "We enhanced the mobile experience, brought on
thousands of new local business customers and completed the
integration of Qype, which accelerated our European expansion.
Looking to 2014, we will continue our geographic expansion,
add new products and programs for our community of writers and find
even more ways to drive value to business owners. "
"We are very pleased with our performance in 2013," added
Rob Krolik, Yelp's chief financial
officer. "Full year revenue growth accelerated to 69% over
2012 while we demonstrated leverage in the model with more than a
six-fold increase in adjusted EBITDA. In 2014, we will
continue to invest in the business to capture the large local
opportunity in front of us."
2013 Business Highlights
- Yelp mobile: Yelp enhanced the mobile consumer
experience by launching new features such as a revamped Nearby
function and the ability to write and post reviews from
mobile. In the fourth quarter, Yelp had approximately 53
million mobile unique visitors (which includes both mobile web and
mobile app users), and 30% of new reviews were contributed through
mobile devices.
- Closing the loop with businesses: Yelp launched a
number of new products in 2013 to help close the loop with local
businesses, including the Revenue Estimator, Call to Action,
Customer Activity Feed and Yelp Platform. Yelp Platform
enables consumers to go from discovery to transaction directly on
Yelp and is now generating over 10,000 food orders each week.
Yelp also acquired SeatMe, a web and iPad app-based
reservation solution for the restaurant and nightlife categories,
and integrated the reservation functionality into its mobile
application and website in the fourth quarter.
- Geographic expansion: In Q4, Yelp completed the
integration of Qype, migrating 1.8 million reviews and 1.4 million
photos to Yelp from Qype Germany. Yelp expanded its European
sales efforts and is now selling Yelp products in France, Spain
and Germany. With the
launches of New Zealand, the
Czech Republic, Brazil and Portugal in 2013, Yelp is now available in 24
countries on five continents.
Business Outlook
As of today, Yelp is providing its outlook for the first quarter
of 2014 and full year 2014.
- For the first quarter of 2014, net revenue is expected to be in
the range of $73.5 million to $74.5
million, representing growth of approximately 60% compared
to the first quarter of 2013. Adjusted EBITDA is expected to
be in the range of $8 million to $9
million. Stock-based compensation is expected to be in
the range of $10 million to $11
million, and depreciation and amortization is expected to be
approximately 5% of revenue.
- For the full year of 2014, net revenue is expected to be in the
range of $353 million to $358
million, representing growth of approximately 53% compared
to the full year of 2013. Adjusted EBITDA is expected to be
in the range of $54 million to $58
million. Stock-based compensation is expected to be in
the range of $43 million to $45
million, and depreciation and amortization is expected to be
approximately 5% of revenue.
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) 446-1671, or outside the U.S.
1 (847) 413-3362, with Passcode 36415214, 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 February 5,
2014 and 11:59 p.m. PT
February 18, 2014 by calling 1 (888)
843-7419 or 1 (630) 652-3042, with Passcode 36415214. 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, the Czech
Republic, Brazil and
Portugal. Yelp had a monthly
average of approximately 120 million unique visitors in the fourth
quarter 2013*. By the end of the same quarter, Yelpers had written
approximately 53 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.
* 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
its adjusted EBITDA outlook for the first quarter and full year
2014 to its net income (loss) outlook because it does not provide
an outlook 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 an outlook. Accordingly,
reconciliation to net income (loss) outlook for the first quarter
and full year 2014 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 first
quarter and full year 2014, the future growth in Company revenue
and continued investing by the Company in its future growth, the
Company's ability to expand geographically and build Yelp
communities internationally and expand its markets and presence in
existing markets, the Company's ability to capture the large local
opportunity and its plans regarding product innovation around
mobile and new features, geographic expansion, and closing the loop
with local businesses. 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 Annual Report on Form 10-K for the three months and
year ended December 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
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)
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
2013
|
|
|
2012
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
389,764
|
|
|
$
95,124
|
Accounts receivable,
net
|
21,318
|
|
|
11,738
|
Prepaid expenses and
other current assets
|
5,752
|
|
|
4,912
|
Total current
assets
|
416,834
|
|
|
111,774
|
|
|
|
|
|
Property, equipment
and software, net
|
30,666
|
|
|
14,799
|
Goodwill
|
59,690
|
|
|
48,605
|
Intangibles,
net
|
5,235
|
|
|
5,936
|
Restricted
cash
|
3,247
|
|
|
6,400
|
Other
assets
|
306
|
|
|
182
|
Total
assets
|
$
515,978
|
|
|
$
187,696
|
|
|
|
|
|
Liabilities, and stockholders'
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
3,364
|
|
|
$
2,284
|
Accrued
liabilities
|
22,728
|
|
|
16,367
|
Deferred
revenue
|
2,621
|
|
|
2,856
|
Total current
liabilities
|
28,713
|
|
|
21,507
|
Long-term
liabilities
|
782
|
|
|
527
|
Total
liabilities
|
29,495
|
|
|
22,034
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common
stock
|
-
|
|
|
-
|
Additional paid-in
capital
|
553,753
|
|
|
225,245
|
Accumulated other
comprehensive income
|
3,188
|
|
|
805
|
Accumulated
deficit
|
(70,458)
|
|
|
(60,388)
|
Total stockholders'
equity
|
486,483
|
|
|
165,662
|
Total
liabilities, and stockholders' equity
|
$
515,978
|
|
|
$
187,696
|
Yelp
Inc.
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
70,651
|
|
$
41,157
|
|
$
232,988
|
|
$
137,567
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of revenue
(1)
|
4,926
|
|
3,003
|
|
16,561
|
|
9,928
|
Sales and marketing
(1)
|
38,847
|
|
25,511
|
|
131,970
|
|
85,915
|
Product development
(1)
|
11,802
|
|
6,244
|
|
38,243
|
|
20,473
|
General and
administrative (1)
|
13,460
|
|
7,852
|
|
42,907
|
|
31,531
|
Depreciation and
amortization
|
3,524
|
|
2,421
|
|
11,455
|
|
7,223
|
Restructuring and
integration (1)
|
-
|
|
1,262
|
|
675
|
|
1,262
|
|
|
|
|
|
|
|
|
Total cost and
expenses
|
72,559
|
|
46,293
|
|
241,811
|
|
156,332
|
Loss from
operations
|
(1,908)
|
|
(5,136)
|
|
(8,823)
|
|
(18,765)
|
Other income
(expense), net
|
(109)
|
|
(203)
|
|
(407)
|
|
(226)
|
Loss before provision
for income taxes
|
(2,017)
|
|
(5,339)
|
|
(9,230)
|
|
(18,991)
|
Provision for income
taxes
|
(52)
|
|
20
|
|
(838)
|
|
(122)
|
Net loss
|
(2,069)
|
|
(5,319)
|
|
(10,068)
|
|
(19,113)
|
Accretion of
redeemable convertible preferred stock
|
-
|
|
-
|
|
-
|
|
(32)
|
Net loss attributable
to common stockholders
|
$
(2,069)
|
|
$
(5,319)
|
|
$
(10,068)
|
|
$
(19,145)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
(0.03)
|
|
$
(0.08)
|
|
$
(0.15)
|
|
$
(0.35)
|
Diluted
|
$
(0.03)
|
|
$
(0.08)
|
|
$
(0.15)
|
|
$
(0.35)
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share attributable to common
stockholders:
|
Basic
|
68,859
|
|
63,003
|
|
65,695
|
|
54,149
|
Diluted
|
68,859
|
|
63,003
|
|
65,695
|
|
54,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Cost of
revenue
|
$
140
|
|
$
38
|
|
$
421
|
|
$
122
|
Sales and
marketing
|
3,201
|
|
1,746
|
|
10,131
|
|
4,917
|
Product
development
|
2,705
|
|
696
|
|
6,270
|
|
1,705
|
General and
administrative
|
2,743
|
|
778
|
|
9,300
|
|
8,134
|
Restructuring and
integration
|
-
|
|
-
|
|
555
|
|
-
|
Total stock-based
compensation
|
$
8,789
|
|
$
3,258
|
|
$
26,677
|
|
$
14,878
|
Yelp
Inc.
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net loss
|
$ (2,069)
|
|
$ (5,319)
|
|
$ (10,068)
|
|
$ (19,113)
|
Provision for income
taxes
|
52
|
|
(20)
|
|
838
|
|
122
|
Other income
(expense), net
|
109
|
|
203
|
|
407
|
|
226
|
Depreciation and
amortization
|
3,524
|
|
2,421
|
|
11,455
|
|
7,223
|
Stock-based
compensation*
|
8,789
|
|
3,258
|
|
26,122
|
|
14,878
|
Restructuring and
integration
|
-
|
|
1,262
|
|
675
|
|
1,262
|
Adjusted
EBITDA
|
$ 10,405
|
|
$
1,805
|
|
$
29,429
|
|
$
4,598
|
|
|
|
|
|
|
|
|
* Stock-based
compensation for the twelve months ended December 31, 2013 excludes
approximately $0.6 million of stock-based compensation already
included in restructuring and integration costs.
|
SOURCE Yelp Inc.