Yelp Q2 2017 earnings were released after closing bell tonight, and the company reported non-GAAP earnings of 25 cents per share on $208.9 million in net revenue. In last year’s second quarter, Yelp Inc (NYSE:YELP) reported earnings of 16 cents per share on $173.4 million in net revenues. On a GAAP basis, Yelp Q2 2017 earnings amounted to 9 cents per share, compared to earnings of 1 cent per share last year. The consensus estimates stood at losses of 3 cents per share on $204.9 million in revenue.

Yelp Q2 2017 earnings
By User:ZyMOS [Public domain], via Wikimedia Commons

Yelp Q2 2017 earnings

Adjusted EBITDA rose to $42.9 million from $28.1 million a year ago. EBITDA increased to $17.5 million from $7.4 million a year ago. Ad revenue grew 19% year over year to $186.6 million; transactions revenue also increased 19%, climbing to $18.4 million. Other services revenue grew to $3.8 million from $1.2 million in the year-ago quarter.

The number of cumulative reviews increased 24% to about 135 million, while app unique devices increased 22% to a monthly average of about 28 million. Yelp grew the number of paying ad accounts 18% to about 148,000.

Also tonight, Yelp announced that it has agreed to sell Eat24 to Grubhub for $287.5 million in cash. After the sale closes, the two companies will enter a strategic partnership which will have Yelp add online ordering from all restaurants that are on Grubhub into the Yelp platform.

Yelp updates guidance

For the third quarter, Yelp expects net revenue to be between $217 million and $222 million and adjusted EBITDA to be between $32 million and $35 million. For the full year, the company now expects revenue to be between $855 million and $865 million, a slight increase at the bottom end of the range. Yelp also expects full-year adjusted EBITDA to be between $102 million and $104 million.

Things have certainly changed for Yelp with this earnings release. In the company’s first-quarter earnings report, management slashed their guidance for full-year revenues to a range of $850 million to $865 million, which was quite a bit short of the consensus at that time, which was $888.7 million. And what’s even worse than that is that they had already cut their guidance once just a couple months before when they lowered it to between $880 million and $900 million. Yelp’s original full-year outlook was about $1 billion.

Yelp also announced that its board has approved a $200 million share repurchase program.

After Yelp Q2 2017 earnings were released, the company’s stock skyrocketed, climbing by as much as 18.01% to $37.02. The stock ended the regular trading day down 2.73%.