SAN FRANCISCO, April 29, 2015 /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, 2015.
- Net revenue was $118.5 million in
the first quarter of 2015 reflecting 55% growth over the first
quarter of 2014.
- Adjusted EBITDA for the first quarter of 2015 was $16.3 million, reflecting a 92% increase over the
first quarter of 2014.
- Cumulative reviews grew 36% year over year to approximately 77
million, including a record 6 million reviews contributed in the
quarter.
- Average monthly mobile unique visitors grew 29% year over year
to approximately 79 million1 and average monthly desktop
unique visitors declined 3% year over year to approximately 80
million2. Average monthly unique visitors (desktop and
mobile web) grew 8% year over year to approximately 142
million3.
- Local advertising accounts grew 43% year over year to
approximately 90,2004.
Net loss in the first quarter of 2015 was $(1.3) million, or $(0.02) per share, compared to a net loss of
$(2.6) million, or $(0.04) per share, in the first quarter of
2014.
Non-GAAP net income, which consists of net income excluding
stock-based compensation and amortization was $7.9 million, or $0.10 per share, for the first quarter of
2015.
"We are excited about our start to the year as we've made
significant progress on our key initiatives for 2015," said
Jeremy Stoppelman, Yelp's chief
executive officer. "In the first quarter, we acquired Eat24 to
drive daily usage and improved utility of Yelp and added partners
in five additional verticals of Yelp Platform. Looking to the rest
of the year, we will continue to seek ways to increase engagement
and drive awareness, while striving to demonstrate the value we can
deliver to local businesses in order to capture the large local
advertising market opportunity."
"We delivered topline growth of 55% year over year," added
Rob Krolik, Yelp's chief financial
officer. "Local businesses are increasingly adopting
performance-based advertising, and in the first quarter,
cost-per-click advertisers represented approximately 40% of local
advertising revenue, an increase from 32% in the fourth quarter of
2014. With 92% growth in adjusted EBITDA year over year, we
continue to show operating leverage in the business and look
forward to growing the business through the rest of the year."
First Quarter Operating Summary
- Local advertising revenue totaled $98.6
million, representing 51% growth over the first quarter of
2014.
- Brand advertising revenue totaled $6.6
million, representing an 11% decrease compared to the first
quarter of 2014.
- Other revenue totaled $13.3
million, representing 254% growth over the first quarter of
2014. Eat24 contributed revenue of approximately $5 million in the quarter.
Business Highlights
- Eat24: Yelp acquired Eat24 to improve the consumer
experience in the online food ordering vertical and to increase
daily consumer engagement on Yelp. Eat24 enables consumers to order
food online at over 20,000 restaurants nationwide.
- Yelp Platform: Yelp increased the number of ways
consumers can interact with Yelp by adding six new partners to Yelp
Platform, bringing the total number of Platform partners to
fifteen. Since its inception in July
2013, consumers had completed about 1.5 million transactions
on Yelp Platform as of the end of the first quarter of 2015.
- SeatMe and Yelp Reservations: Yelp expanded the number
of restaurants accepting reservations through SeatMe and Yelp
Reservations to more than 12,000, a 50% increase over the fourth
quarter of 2014.
Business Outlook
As of today, Yelp is providing its outlook for the second
quarter and confirming its outlook for the full year of 2015.
- For the second quarter of 2015, net revenue is expected to be
in the range of $131 million to $134
million, representing growth of approximately 49% compared
to the second quarter of 2014. Adjusted EBITDA is expected to be in
the range of $22 million to $24
million. Stock-based compensation is expected to be in the
range of $14 million to $15 million,
and depreciation and amortization is expected to be approximately
5% of revenue.
- For the full year of 2015, net revenue is expected to be in the
range of $574 million to $579
million, representing growth of approximately 53% compared
to full year 2014. Adjusted EBITDA is expected to be in the range
of $102 million to $105 million.
Stock-based compensation is expected to be in the range of
$58 million to $60 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 39359352, 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 29, 2015 and 11:59
p.m. PT May 6, 2015 by calling 1
(888) 843-7419 or 1 (630) 652-3042, with Passcode 39359352.
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 29
countries. Approximately 80 million unique visitors visited Yelp
via a desktop computer2 and approximately 79 million
unique visitors visited Yelp via their mobile device in the first
quarter of 20151. By the end of the same quarter,
Yelpers had written approximately 77 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.
1 Calculated as the number of "users," as measured by
Google Analytics, accessing Yelp via mobile web plus unique devices
accessing the app, each on a monthly average basis over a given
three-month period.
2 "Users," as measured by Google Analytics, accessing
Yelp via desktop computer on an average monthly basis over a given
three-month period.
3 "Users," as measured by Google Analytics, on a
monthly average basis over a given three-month period.
4 Local advertising accounts comprise all local
business accounts from which we recognize local advertising revenue
in a given three-month period.
Non-GAAP Financial Measures
This press release includes information relating to adjusted
EBITDA and non-GAAP net income, each of which the Securities and
Exchange Commission has defined as a "non-GAAP financial measure."
Adjusted EBITDA and non-GAAP net income have been included in this
press release because they are key measures 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 and non-GAAP net income have limitations as
analytical tools, and you should not consider them in isolation or
as substitutes 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 and non-GAAP net income do 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 and non-GAAP net income do 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 those in the Company's industry, may
calculate adjusted EBITDA and non-GAAP net income differently,
which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider adjusted
EBITDA and non-GAAP net income 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 2015 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 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 2015 is not available without
unreasonable effort. For a reconciliation of historical
non-GAAP financial measures to the nearest comparable GAAP
measures, see the non-GAAP reconciliations included below 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 2015, the future growth in Company
revenue and continued investing by the Company in its future
growth, the Company's ability to drive daily usage and
engagement, increase awareness of Yelp among consumers,
deliver value to local businesses, capture the large local
opportunity and more advertising spend and develop new ways to
close 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 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, such as Eat24, 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 Annual Report
on Form 10-K 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.
Investor Relations Contact Information
Wendy Lim, Allie Dalglish
(415) 635-2412
ir@yelp.com
Yelp
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
2015
|
|
|
2014
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 172,629
|
|
|
$
247,312
|
Short-term marketable
securities
|
|
158,603
|
|
|
118,498
|
Accounts receivable,
net
|
|
38,969
|
|
|
35,593
|
Prepaid expenses and
other current assets
|
|
22,706
|
|
|
19,355
|
Total current
assets
|
|
392,907
|
|
|
420,758
|
|
|
|
|
|
|
Long-term marketable
securities
|
|
16,495
|
|
|
38,612
|
Property, equipment
and software, net
|
|
68,594
|
|
|
62,761
|
Goodwill
|
|
172,160
|
|
|
67,307
|
Intangibles,
net
|
|
44,187
|
|
|
5,786
|
Restricted
cash
|
|
17,899
|
|
|
17,943
|
Other
assets
|
|
3,644
|
|
|
16,483
|
Total
assets
|
|
$ 715,886
|
|
|
$
629,650
|
|
|
|
|
|
|
Liabilities
and stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$ 1,836
|
|
|
$
1,398
|
Accrued
liabilities
|
|
41,888
|
|
|
29,581
|
Deferred
revenue
|
|
3,657
|
|
|
2,994
|
Total current
liabilities
|
|
47,381
|
|
|
33,973
|
Long-term
liabilities
|
|
11,849
|
|
|
7,527
|
Total
liabilities
|
|
59,230
|
|
|
41,500
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common
stock
|
|
-
|
|
|
-
|
Additional paid-in
capital
|
|
705,397
|
|
|
627,742
|
Accumulated other
comprehensive loss
|
|
(13,474)
|
|
|
(5,609)
|
Accumulated
deficit
|
|
(35,267)
|
|
|
(33,983)
|
Total stockholders'
equity
|
|
656,656
|
|
|
588,150
|
Total liabilities and
stockholders' equity
|
|
$ 715,886
|
|
|
$
629,650
|
Yelp
Inc.
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Net
revenue
|
|
$ 118,508
|
|
$ 76,407
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
Cost of revenue
(1)
|
|
8,699
|
|
5,077
|
Sales and marketing
(1)
|
|
63,266
|
|
45,121
|
Product development
(1)
|
|
23,960
|
|
13,982
|
General and
administrative (1)
|
|
19,937
|
|
13,170
|
Depreciation and
amortization
|
|
6,895
|
|
3,661
|
|
|
|
|
|
Total cost and
expenses
|
|
122,757
|
|
81,011
|
Loss from
operations
|
|
(4,249)
|
|
(4,604)
|
Other income
(expense), net
|
|
562
|
|
(2)
|
Loss before income
taxes
|
|
(3,687)
|
|
(4,606)
|
Benefit for income
taxes
|
|
2,403
|
|
1,971
|
Net loss attributable
to common stockholders
|
|
$ (1,284)
|
|
$ (2,635)
|
|
|
|
|
|
Net loss per share
attributable to common stockholders:
|
|
|
|
|
Basic
|
|
$ (0.02)
|
|
$ (0.04)
|
Diluted
|
|
$ (0.02)
|
|
$ (0.04)
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share attributable to common
stockholders:
|
Basic
|
|
73,684
|
|
71,171
|
Diluted
|
|
73,684
|
|
71,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Cost of
revenue
|
|
$ 124
|
|
$ 150
|
Sales and
marketing
|
|
4,937
|
|
3,397
|
Product
development
|
|
5,105
|
|
3,042
|
General and
administrative
|
|
3,505
|
|
2,867
|
Total stock-based
compensation
|
|
$ 13,671
|
|
$ 9,456
|
Yelp
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Year
Ended
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
$ (1,284)
|
|
$ (2,635)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
6,895
|
|
3,661
|
Provision for doubtful accounts and sales returns
|
|
3,434
|
|
1,186
|
Stock-based compensation
|
|
13,671
|
|
9,456
|
(Gain)
loss on disposal of assets and website development costs
|
|
52
|
|
-
|
Premium
amortization, net, on securities held-to-maturity
|
|
(117)
|
|
-
|
Excess
tax benefit from share-based award activity
|
|
(815)
|
|
(39)
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(2,850)
|
|
(1,249)
|
Prepaid
expenses and other assets
|
|
(6,045)
|
|
(5,928)
|
Accounts
payable, accrued expenses and other liabilities
|
|
12,011
|
|
5,309
|
Deferred
revenue
|
|
683
|
|
(438)
|
Net cash provided by
(used in) operating activities
|
|
25,635
|
|
9,323
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Acquisitions, net of
cash received
|
|
(71,546)
|
|
-
|
Purchases of
property, equipment and software
|
|
(10,881)
|
|
(4,246)
|
Capitalized website
and software development costs
|
|
(3,196)
|
|
(1,592)
|
Change in restricted
cash
|
|
(5)
|
|
(397)
|
Purchase of
intangibles
|
|
(314)
|
|
-
|
Proceeds from sale of
property and equipment
|
|
97
|
|
-
|
Purchases of
investment securities held-to- maturity
|
|
(36,120)
|
|
-
|
Maturities of
investment securities held-to-maturity
|
|
18,250
|
|
-
|
Cash used in
investing activities
|
|
(103,715)
|
|
(6,235)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
exercise of employee stock options
|
|
3,398
|
|
6,735
|
Excess tax benefit
from share-based award activity
|
|
815
|
|
39
|
Repurchase of common
stock
|
|
(168)
|
|
(361)
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
4,045
|
|
6,413
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(648)
|
|
55
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
(74,683)
|
|
9,556
|
Cash and cash
equivalents at beginning of period
|
|
247,312
|
|
389,764
|
Cash and cash
equivalents at end of period
|
|
$172,629
|
|
$ 399,320
|
|
Yelp
Inc.
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
(In thousands, except
per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
Net loss
|
|
$ (1,284)
|
|
$ (2,635)
|
|
(Benefit) Provision
for income taxes
|
|
(2,403)
|
|
(1,971)
|
|
Other (income)
expense, net
|
|
(562)
|
|
2
|
|
Depreciation and
amortization
|
|
6,895
|
|
3,661
|
|
Stock-based
compensation
|
|
13,671
|
|
9,456
|
|
Adjusted
EBITDA
|
|
$ 16,317
|
|
$ 8,513
|
|
|
|
|
|
|
Non-GAAP Net Income
(Loss) and Income (Loss) per share:
|
|
|
|
|
GAAP net loss
attributable to common
|
|
|
|
|
|
shareholders
|
|
$ (1,284)
|
|
$ (2,635)
|
|
Add
back: stock-based compensation
|
|
13,671
|
|
9,456
|
|
Add
back: amortization of intangible assets
|
|
1,231
|
|
626
|
|
Less:
tax effect of stock-based compensation & amortization of intangible assets
|
|
(5,716)
|
|
(3,860)
|
|
Add
back: valuation allowance release (net of tax)
|
|
-
|
|
1,958
|
|
Non-GAAP Net
Income
|
|
$ 7,902
|
|
$ 5,545
|
|
|
|
|
|
|
|
Non-GAAP diluted
shares
|
|
77,899
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
(Loss) per share
|
|
$ 0.10
|
|
|
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SOURCE Yelp Inc.