Yelp Inc (NYSE:YELP) released the earnings results from its most recently completed quarter after closing bell, posting earnings per share of 5 cents on $102.5 million in sales, a 67% growth rate year over year.
Analysts had been looking for earnings per share of 3 cents on $99 million in revenue. In the same quarter last year, Yelp reported losses of 4 cents per share on $61.2 million in revenue.
Key metrics from Yelp’s earnings report
The company reported $19 million in cash flow from operations and $418 million in cash, cash equivalents and marketable securities. Adjusted EBITDA was $20.1 million, compared to $8.1 million last year.
Yelp saw a 41% growth rate in cumulative reviews, which climbed to about 67 million. The number of average monthly unique visitors increased 19% to about 139 million. The number of average monthly mobile unique visitors rose 46% year over year to about 73 million. During the quarter, Yelp users contributed about 5.3 million reviews, which the company said is the biggest quarterly increase so far. About 45% of the new reviews came from mobile devices.
Yelp saw the number of active local business accounts climb 51% to about 86,200.
Yelp’s business updates
The company said it now operates in 29 countries and is available in 16 different languages. During the third quarter, it launched in Hong Kong and Chile and began offering mobile review translations. Yelp Platform transactions and reservations were also added during the quarter.
Yelp provides weak guidance
Yelp expects to see sales for the current quarter be between $107 million and $108 million. That’s significantly weaker than the consensus estimate of $111 million, although it represents about a 52% growth rate year over year. Yelp projects adjusted EBITDA of between $24 million and $25 million.
For the full year, the company expects net revenue of between $375 million and $376 million, which is about a 61% growth rate over last year. Yelp projects adjusted EBITDA for the full year of between $69.5 million and $70.5 million.