SAN FRANCISCO, April 30, 2014 /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, 2014.
- Net revenue was $76.4 million in
the first quarter of 2014, reflecting 66% growth from the first
quarter of 2013
- Cumulative reviews grew 46% year over year to approximately 57
million
- Average monthly unique visitors grew 30% year over year to
approximately 132 million* and average monthly mobile unique
visitors grew 52% year over year to approximately 61 million**
- Active local business accounts grew 65% year over year to
approximately 74 thousand
Net loss in the first quarter of 2014 was $(2.6) million, or $(0.04) per share, compared to a net loss of
$(4.8) million, or $(0.08) per share, in the first quarter of
2013. Adjusted EBITDA for the first quarter of 2014 was
approximately $8.5 million, compared
to $3.2 million for the first quarter
of 2013.
"We had a great start to the year and are excited about the
large opportunity ahead of us," said Jeremy
Stoppelman, Yelp's chief executive officer. "Yelp is
becoming the gold standard in local search. In the first
quarter, we announced our integration into Yahoo local search,
building on our existing partnerships with Apple Maps and
Bing. We also entered into an advertising partnership with
YP.com which will enable us to introduce Yelp to an even broader
pool of business owners. Looking to the rest of the year, we
will continue to support and engage our community of Yelpers,
expand geographically and create innovative products that close the
loop with business owners."
"We continue to deliver outstanding results with year over year
revenue growth of 66%," added Rob
Krolik, Yelp's chief financial officer. "We are
pleased to announce that we are raising guidance for the full year
due to the momentum we're seeing in the business. We will
also continue to invest in hiring, geographic expansion and product
innovation to capture the large local opportunity in front of
us."
Business Highlights
- Community engagement: Yelp continues to support
and engage its community. In the first quarter, Yelp upgraded
the business listing page with larger photos and more relevant
review highlights to emphasize what consumers find most useful and
also rolled out the ability to add photos through the mobile
web. In the first quarter, Yelp had approximately 61 million
mobile unique visitors on a monthly average basis and approximately
35% of new reviews were contributed through mobile
devices.
- Geographic expansion: Yelp continues to expand
globally. In the first quarter, international reviews grew
210% and international traffic grew 95% year over year. Yelp
expanded its presence in Latin
America and Asia with the
launch of Mexico and Japan, its 25th and 26th
countries. Yelp also launched new markets in Quebec City, Canada and Lisbon, Portugal and is now in a total of 120
Yelp markets worldwide.
- Brand ubiquity: Yelp is becoming the de facto
standard in local search and consumers and other companies
recognize its leadership in the local space. In the first
quarter, Yelp announced its integration into Yahoo local search as
well as an advertising partnership with YP.com.
Business Outlook
As of today, Yelp is providing its outlook for the second
quarter of 2014 and full year 2014.
- For the second quarter of 2014, net revenue is expected to be
in the range of $85 million to $86
million, representing growth of approximately 55% compared
to the second quarter of 2013. Adjusted EBITDA is expected to
be in the range of $11.5 million to $12.5
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 $363 million to $367
million, representing growth of approximately 57% compared
to the full year of 2013. Adjusted EBITDA is expected to be
in the range of $56 million to $60
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
To access the call, please dial 1 (800) 708-4539, or outside the
U.S. 1 (847) 619-6396, with Passcode 37094125, 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 April 30,
2014 and 11:59 p.m. PT
May 14, 2014 by calling 1 (888)
843-7419 or 1 (630) 652-3042, with Passcode 37094125. 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 26
countries. Yelp had a monthly average of approximately 132 million
unique visitors in the first quarter 2014*. By the end of the same
quarter, Yelpers had written approximately 57 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. Approximately 61 million** unique visitors visited Yelp
via their mobile device on a monthly average basis during Q1
2014.
* Source: Google Analytics
** Average monthly mobile unique visitors based on the number of
unique visitors accessing Yelp via mobile web and unique devices
accessing the app on a monthly average basis over a given
three-month period.
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 second 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 second 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 second
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 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;
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, 2014 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
Yelp Investor
Relations
Wendy Lim
(415) 568-3240
ir@yelp.com
Yelp
Inc
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
2014
|
|
|
2013
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
399,320
|
|
|
$
389,764
|
Accounts receivable,
net
|
|
21,376
|
|
|
21,317
|
Prepaid expenses and
other current assets
|
|
9,087
|
|
|
5,752
|
Total current
assets
|
|
429,783
|
|
|
416,833
|
|
|
|
|
|
|
Property, equipment
and software, net
|
|
33,298
|
|
|
30,666
|
Goodwill
|
|
59,635
|
|
|
59,690
|
Intangibles,
net
|
|
4,615
|
|
|
5,235
|
Restricted
cash
|
|
3,655
|
|
|
3,247
|
Other
assets
|
|
2,488
|
|
|
306
|
Total
assets
|
|
$
533,474
|
|
|
$
515,977
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
1,578
|
|
|
$
3,364
|
Accrued
liabilities
|
|
23,992
|
|
|
19,004
|
Deferred
revenue
|
|
2,184
|
|
|
2,621
|
Total current
liabilities
|
|
27,754
|
|
|
24,989
|
Long-term
liabilities
|
|
5,784
|
|
|
4,505
|
Total
liabilities
|
|
33,538
|
|
|
29,494
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common
stock
|
|
-
|
|
|
-
|
Additional paid-in
capital
|
|
569,925
|
|
|
553,753
|
Accumulated other
comprehensive income
|
|
3,102
|
|
|
3,186
|
Accumulated
deficit
|
|
(73,091)
|
|
|
(70,456)
|
Total stockholders'
equity
|
|
499,936
|
|
|
486,483
|
Total liabilities and
stockholders' equity
|
|
$
533,474
|
|
|
$
515,977
|
Yelp
Inc
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Net
revenue
|
|
$ 76,407
|
|
$ 46,133
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
Cost of revenue
(1)
|
|
5,077
|
|
3,340
|
Sales and marketing
(1)
|
|
45,121
|
|
28,194
|
Product development
(1)
|
|
13,982
|
|
7,236
|
General and
administrative (1)
|
|
13,170
|
|
8,764
|
Depreciation and
amortization
|
|
3,661
|
|
2,478
|
Restructuring and
integration (1)
|
|
-
|
|
675
|
|
|
|
|
|
Total cost and
expenses
|
|
81,011
|
|
50,687
|
Loss from
operations
|
|
(4,604)
|
|
(4,554)
|
Other income
(expense), net
|
|
(2)
|
|
(201)
|
Loss before provision
for income taxes
|
|
(4,606)
|
|
(4,755)
|
Benefit/(Provision)
for income taxes
|
|
1,971
|
|
(44)
|
Net loss attributable
to common stockholders
|
|
$ (2,635)
|
|
$ (4,799)
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
Basic
|
|
$
(0.04)
|
|
$
(0.08)
|
Diluted
|
|
$
(0.04)
|
|
$
(0.08)
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share attributable to common
stockholders:
|
Basic
|
|
71,171
|
|
63,733
|
Diluted
|
|
71,171
|
|
63,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
Cost of
revenue
|
|
$
150
|
|
$
72
|
Sales and
marketing
|
|
3,397
|
|
1,988
|
Product
development
|
|
3,042
|
|
816
|
General and
administrative
|
|
2,867
|
|
1,729
|
Restructuring and
integration
|
|
-
|
|
555
|
Total stock-based
compensation
|
|
$
9,456
|
|
$
5,160
|
Yelp
Inc
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Net loss
|
|
$
(2,635)
|
|
$
(4,799)
|
Provision for income
taxes
|
|
(1,971)
|
|
44
|
Other income
(expense), net
|
|
2
|
|
201
|
Depreciation and
amortization
|
|
3,661
|
|
2,478
|
Stock-based
compensation*
|
|
9,456
|
|
4,605
|
Restructuring and
integration
|
|
-
|
|
675
|
Adjusted
EBITDA
|
|
$
8,513
|
|
$
3,204
|
* 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.
|
Yelp
Inc
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
Operating
activities
|
|
|
|
|
Net loss
|
|
$ (2,635)
|
|
$ (4,799)
|
Adjustments to
reconcile net loss to net
|
|
|
|
|
cash provided
by (used in) operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
3,661
|
|
2,478
|
Provision for
doubtful accounts
|
|
1,186
|
|
551
|
Stock-based
compensation
|
|
9,456
|
|
5,160
|
Excess tax benefit
from share-based award activity
|
|
(39)
|
|
-
|
Loss on disposal of
assets and web-site development costs
|
|
-
|
|
50
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(1,249)
|
|
(1,204)
|
Prepaid expenses and
other assets
|
|
(5,928)
|
|
(1,515)
|
Accounts payable and
accrued expenses
|
|
5,309
|
|
(1,176)
|
Deferred
revenue
|
|
(438)
|
|
281
|
Net cash provided by
(used in) operating activities
|
|
9,323
|
|
(174)
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchases of
property, equipment and software
|
|
(4,246)
|
|
(943)
|
Capitalized website
and software development costs
|
|
(1,592)
|
|
(969)
|
Change in restricted
cash
|
|
(397)
|
|
-
|
Cash used in
investing activities
|
|
(6,235)
|
|
(1,912)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
exercise of employee stock options
|
|
6,735
|
|
1,657
|
Excess tax benefit
from share-based award activity
|
|
39
|
|
-
|
Repurchase of common
stock
|
|
(361)
|
|
(81)
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
6,413
|
|
1,576
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
55
|
|
(116)
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
9,556
|
|
(626)
|
Cash and cash
equivalents at beginning of period
|
|
389,764
|
|
95,124
|
Cash and cash
equivalents at end of period
|
|
$399,320
|
|
$94,498
|
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SOURCE Yelp Inc.