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Yelp Stock: Company Posts Surprise Profit, Raises Forecast

Company raises full-year revenue and EBITDA guidance.
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Yelp Inc.  (YELP) - Get Yelp Inc Report reported an unexpected second-quarter profit Thursday, helped by re-openings in the U.S., that have the company feeling optimistic enough to raise revenue guidance for the rest of the year.

Yelp said it earned 6 cents a share in the quarter on revenue of $257.2 million.

In the same period a year ago the company posted a loss of 33 cents a share on revenue of $169 million.

Wall Street analysts had been forecasting a loss of 9 cents a share on revenue of $246 million, according to Factset.

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Yelp raised its full-year net-revenue outlook to $1.01 billion to $1.03 billion and its adjusted EBITDA forecast to $200 million to $220 million.

"Our strong second quarter results give us the confidence to raise our full-year outlook," said David Schwarzbach, Yelp’s CFO, in a statement. "We achieved 52% year-over-year revenue growth and record Adjusted EBITDA, even as we invested behind our initiatives.”

Shares of Yelp rose $5.20, or 14%, to $42.40 in after-hours trading. 

Groupon Gains

Elsewhere after hours, shares of Groupon  (GRPN) - Get Groupon, Inc. Report rose $5.37, or 15%, to $41  following its latest financial report. The company posted adjusted warnings of 33 cents a share, vs. a loss of 93 cents a share in the same period a year ago.  A FactSet survey of Wall Street analysts had the company earnings 22 cents a share. 

Cloudfare Slides

Among decliners, Cloudfare  (NET) - Get Cloudflare Inc Class A Report lost $6.75, or 6%, to $114.70 after reporting a narrower second-quarter loss. The cloud security company reported an adjusted loss of 2 cents a share vs. 3 cents a share in the year earlier period. Revenue rose 53% in the period to $152.4 million.