Yelp (bellow) shares rose 14.5% during yesterday’s extended trading session after the company posted strong second-quarter numbers.
Impressively, our website traffic tool showed this Q2 outperformance in total website traffic to Yelp and across devices from Q4 2021 onwards. By comparison, the platform had 307.6 million total visits in the same period last year.
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Q2 Beat & Updated Guidance
The top line hit a record high of $298.9 million, beating estimates by about $14.6 million. Earnings per share (EPS) was $0.11, beating expectations by $0.12. Impressively, this is his ninth consecutive earnings record for Yelp.
David Schwarzbach, CFO of Online Local Business Review Platform, said: With self-service and multi-location channels now accounting for 49% of his total ad revenue, it’s clear our strategy is working. ”
Fueled by this advertising strength, the company also raised its full-year guidance and now expects net revenues to be in the $1.18 billion to $1.2 billion range. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be $265 million to $285 million.
Wall Street, meanwhile, holds the stock’s consensus rating, along with a price target of $35.11, suggesting a potential upside of 8.63%.
Yelp’s promising business model remains profitable despite a challenging macro environment. Nonetheless, a beta of 1.46, a price/earnings ratio of 56.6, and a TipRanks Smart score of 4 suggest that the stock isn’t really cheap at current levels, and could help the broader market in the near term. It may not perform better.
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