SAN FRANCISCO - Yelp Inc. (NYSE:YELP) reported better-than-expected fourth-quarter results and provided a robust outlook for 2025, sending its shares up 3.5% in after-hours trading.
The local business review platform posted adjusted earnings per share of $0.62 for the fourth quarter, surpassing the analyst estimate of $0.53. Revenue for the quarter came in at $361.95 million, exceeding the consensus estimate of $351.61 million.
For the full year 2024, Yelp achieved record net revenue of $1.41 billion, up 6% YoY. The company’s focus on its services roadmap drove strong performance, with advertising revenue from services categories increasing 11% YoY to $879 million. This growth offset challenges in restaurant, retail, and other categories, where advertising revenue decreased 3% YoY to $470 million.
Yelp’s net income for 2024 rose 34% YoY to $133 million, representing a 9% net income margin. Adjusted EBITDA grew 8% YoY to $358 million, with a 25% adjusted EBITDA margin.
Looking ahead, Yelp provided an optimistic outlook for 2025, projecting net revenue between $1.47 billion and $1.485 billion. This guidance aligns with the analyst consensus of $1.48 billion.
"Yelp’s 2024 results reflect the strong execution on our services roadmap," said Jeremy Stoppelman, Yelp’s co-founder and CEO. "Our product-led strategy continued to drive the growth of our business. We introduced more than 80 new features and updates as we leveraged AI to drive more connections between consumers and service pros."
The company’s user base remained active, contributing 21 million new reviews in 2024, bringing the cumulative total to 308 million reviews, up 7% from the previous year.
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