Updated from 4:16 p.m. to include updated share price and news of secondary offering.
NEW YORK (TheStreet) -- Yelp (YELP) shares fell 5.4% to $65.10 despite third-quarter revenue that beat Wall Street estimates, and the company raising 2013 revenue guidance. The company also announced it would be doing a secondary offering, as it seeks to bolster its balance sheet.
The San Francisco-based online urban city guide reported a loss of 4 cents a share on $61.2 million in revenue, as revenue grew 68% year over year. Analysts surveyed by Thomson Reuters were expecting a gain of 3 cents per share on $59.41 million in revenue.
During the quarter, Yelp noted average monthly unique visitors grew 41% year over year to approximately 117 million, and active local business accounts grew 61% to approximately 57,200.
"We saw another quarter of strong momentum thanks to the high-quality, authentic content contributed by Yelpers around the world," said Jeremy Stoppelman, Yelp's CEO, in the company's press release. "Our focus on connecting consumers with great local businesses continues to drive our success. In the third quarter, we improved the user experience by adding the ability to write and post reviews from mobile and launched new features such as the customer activity feed for business owners. Looking to the rest of the year and beyond, we are well positioned to capture the large local opportunity ahead of us through our innovation around mobile, geographic expansion and closing the loop with local businesses."
During the quarter, the company noted that approximately 46% of ads were shown on mobile devices, with approximately 62% of the searches coming from mobile devices.