Yelp released its second quarter earnings report after closing bell tonight, posting adjusted earnings of 12 cents per share on revenue of $133.9 million a 51% increase year over year. Analysts were expecting earnings of 1 cent per share and revenue of $133.4 million. In last year’s second quarter, Yelp posted earnings of 4 cents per share and $88.8 million in revenue.
Yelp posts net losses
Net losses were 2 cents per share or $1.3 million, compared to last year’s net income of 4 cents per share or $2.7 million. Adjusted EBITDA increased 32% to $22.7 million.
Yelp’s local ad revenue increased 43% to $107.9 million, while its transactions revenue increased to $11.3 million, mostly as a result of the Eat24 acquisition in the first quarter. Brand ad revenue declined 8% year over year to $8.3 million. Yelp said today it will begin to phase out its brand ad product by the end of this year to focus more on local ad products and the consumer experience. Other revenue increased 128% to $6.4 million.
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Yelp reported that mobile unique visitors surpassed desktop visitors for the first time in company history in the second quarter, reaching about 83 million. Desktop unique visitors were 79 million. Unique device growth sped up to 51%, and the company reported that most of consumer engagement is now coming through the app. About 70% of new reviews and photos and about 70% of calls, clicks, and map views came through the Yelp app.
Yelp’s guidance disappoints
For the third quarter, Yelp management expects net revenue of between $139 million and $142 million, compared to the consensus estimate of $152.4 million. They expect adjusted EBITDA to be between $12 million and $15 million.
For the full year, they now expect net revenue of between $544 million and $550 million, which is a reduction from the previous guidance of between $575 million and $579 million. They’re projecting adjusted EBITDA of between $72 million and $78 million for the full year.
As of this writing, shares of Yelp were down 15.29% at $28.36 per share in after-hours trading.