This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Yelp Earnings Preview: What Wall Street's Thinking

NEW YORK (TheStreet) -- Yelp (YELP) has had a tremendous run, with shares rising 121% year-to-date, as investors flock to the San Francisco-based company.

Last quarter, Yelp shares spiked on back of news that it posted exceptional revenue growth and better-than-expected guidance.

For the second quarter, Yelp gave a revenue guidance between $52.5 million and $53.5 million, as mobile ads continue to ramp up, and the company is executing especially well with them. Mobile ads were launched late last year.

Going into the print, analysts are bullish on the report. Wall Street analysts polled by Thomson Reuters expect Yelp to report a loss of 4 cents per share on $53.29 million in revenue for the quarter, near the top end of Yelp's previous guidance.

YELP ChartYELP data by YCharts

Here's what several analysts on Wall Street are expecting from the report.

Morgan Stanley analyst Scott Devitt (Equalweight, $24 PT):

"We expect Q2:13 results will be in-line with to above the company's guidance, which calls for revenue of $53MM (+62% Y/Y) and EBITDA of $4.8MM (9.0% margin). Consensus estimates appear slightly above company guidance. We look for revenue of $54MM (+64% Y/Y), gross margin of 93.1%, and EBITDA of $5.9MM (10.9% margin). Our forecasts call for local advertising revenue of $45MM (+80% Y/Y), representing 85% of total; brand advertising revenue of $5MM (-5% Y/Y/+13% Q/Q), representing 10% of total; and other services revenue of $3MM (+71% Y/Y), representing 5% of total. We anticipate 106 active Yelp markets (+18% Y/Y; 55 US, +8% Y/Y; 51 non-US, +31% Y/Y), 42MM cumulative reviews (+40% Y/Y), 1.2MM claimed local business locations (+52% Y/Y), and 50k active local business accounts (+57% Y/Y)."

UBS analyst Eric Sheridan (Neutral, $40 PT):

"Our estimates are ahead on revenues ($54.2 mm vs. Street est. $53.3mm) and Adjusted EBITDA ($5.7mm vs. Street est. $5.1mm). Our estimates for both revenue and Adjusted EBITDA are slightly above Yelp's guided ranges of $52.5-53.5mm in revenue and $4.5-5.0mm in Adjusted EBITDA."

JMP Securities analyst Ronald Josey (Market Perform):

"We expect Yelp to deliver results that are above our projections on both revenue and EBITDA given progress in the company's efforts to 'close the loop' with local businesses with the launch of Call to Action, updates to its Nearby products, and improvements to its sales force training materials given recent positive studies from BCG and Nielsen. Specifically, we'll be looking for growth in total users and reviews, whether Active Business Accounts benefited from new revenue estimator tools, and whether Yelp was able to improve overall mobile monetization."

Cantor Fitzgerald analyst Youssef Squali (Buy, $30 Pt):

"We expect strong 2Q:13 results from YELP, with local ad revenue powering ahead at an anticipated rate of 78% Y/Y, relatively consistent with prior quarters. The local online advertising opportunity remains massive, and the number of players with scale, brand, network effect and solid execution is very limited, positioning Yelp as a prime beneficiary over time, in our view."

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,940.59 -143.21 -0.84%
S&P 500 1,981.67 -6.31 -0.32%
NASDAQ 4,452.2090 -19.8990 -0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs