NEW YORK (TheStreet) -- Shares of Yelp (YELP) - Get Report were gaining 6.4% to $23.49 with heavy trading volume on Thursday after the crowd-sourced review service provider beat analysts' estimates for earnings in the third quarter.
On Wednesday, Yelp reported earnings of 2 cents a share for the quarter, above analysts' estimates of a loss of 9 cents a share for the quarter. Revenue grew 40.2% year over year to $143.6 million for the quarter, beating analysts' estimates of $141.42 million.
"We executed well this quarter," CEO Jeremy Stoppelman said in a statement. "Consumers are increasingly discovering our app, which represents approximately 70% of engagement across our entire ecosystem. We believe that our highly engaging app, combined with our native local advertising products that generate high ROI for our customers, strongly positions us to capture the large market opportunity."
Looking to the fourth quarter, Yelp said it expects revenue of $149.5 million to $154.5 million. Analysts expect the company to report earnings of about $152.1 million for the quarter.
About 5.7 million shares of Yelp were traded by 12:38 p.m. Thursday, above the company's average trading volume of about 3.5 million shares a day.
TheStreet Ratings team rates YELP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate YELP INC (YELP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: YELP