And with that, I’ll turn the call over to Rob.Rob Krolik Thanks, Todd and welcome to today’s conference call. It was a strong second quarter and we are happy to share our results with you. For today’s call, I will cover the financial pieces and then Jeremy will give a brief review of recent highlights before we take your questions. Please note that we have posted a few slides on our Investor Relations webpage that accompany this webcast. Let me start with the results from the second quarter of 2012, we achieved record results in all of our key metrics including revenue, which grew 67% year-over-year to $32.7 million. We were particularly pleased to report adjusted EBITDA of $1.6 million, which was well ahead of guidance. Adjusted EBITDA benefited from the strong revenue performance. There are four key operating metrics that we had previously provided as they underpin our strategic and financial success. They are one, the number of reviews contributed to our site; two, the number of unique visitors; three, the number of plain local businesses and four, the number of active local business account. Each of these grew significantly in the quarter. Reviews grew 54% year-over-year to 30.3 million as we added almost 2.7 million reviews in the quarter. Our average monthly unique visitors grew 52% year-over-year to roughly 78 million, which is 7 million from the first quarter. Approximately 24% of these uniques are accessing our mobile site. Claim local businesses hit 791,000 up 75% year-over-year, and up 91,000 from the first quarter. And active local business accounts grew 113% year-over-year to almost 32,000. These financial results and operating metrics demonstrate that playbook continues to deliver growth across all of our markets. And we are especially encouraged by the large numbers of cities with growing communities where we have not yet started selling advertising.
To provide some additional color, let me walk down the P&L starting with the revenue mix. As a quick reminder we break revenue into three categories. One local, which includes enhanced profile pages and performance and impression based advertising. Two, brand, which includes display advertising. And three, other, which includes Yelp Deals and other commerce related revenue.For the second quarter, local revenue was $25.3 million up 89% year-over-year. Brand revenue was $5.7 million up 27% year-over-year. Other revenues flat year-over-year at $1.7 million, given our transition from email deals to deals on the site. That said, we now have around 35,000 deals on the site, most of which are self-serve where merchants are signing up on their own. Our customer repeat rate defined in the percentage of current customers who advertise with us in the past 12 months was 70% this past quarter consistent with the first quarter 2012 and second quarter of last year. Gross margin was consistent at 92% as same as last year’s 2Q. Sales and marketing was 62% of revenue compared with 63% last year. Sales and marketing is both a primary point of investment for growth as well as the greatest point of operating leverage as we move towards our target model. We’ve grown sales and marketing head count above 50% over the last year reflecting our continued investment in opening new markets with our Community Manager program and adding new sales associates. We invested approximately $2 million in the quarter in overseas market compared with $1.2 million in the same quarter last year, and $2.4 million in the first quarter. As a reminder, virtually no revenue has come from overseas market. In fact, we are only generating revenue in 3 out of our 17 countries that we operate in, which we see as an opportunity. Read the rest of this transcript for free on seekingalpha.com