Yelp Announces Third Quarter 2016 Financial Results

Yelp Inc. (NYSE:YELP), the company that connects people with great local businesses, today announced financial results for the third quarter ended September 30, 2016.
  • Net revenue was $186.2 million in the third quarter of 2016, reflecting 30% growth over the third quarter of 2015.
  • Cumulative reviews grew 29% year over year to approximately 115 million.
  • App Unique Devices grew 24% year over year to approximately 25 million on a monthly average basis 1.
  • Local advertising accounts grew 30% year over year to approximately 135 thousand.

GAAP net income in the third quarter of 2016 was $2.1 million, or $0.02 per diluted share, compared to a GAAP net loss of ($8.1) million, or ($0.11) per share, in the third quarter of 2015. Adjusted EBITDA for the third quarter of 2016 was $33.7 million compared to $12.5 million in the third quarter of 2015. Non-GAAP net income, which consists of net income excluding stock-based compensation and amortization, was $18.4 million for the third quarter, or $0.22 per diluted share, compared to $2.7 million, or $0.03 per diluted share, in the third quarter of 2015.

"We had an outstanding quarter in which Local revenue grew 41% year over year and we recorded the highest adjusted EBITDA in company history," said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. "We continue to pursue our mission of connecting consumers with great local businesses everywhere, and our local business in the U.S. has accelerated this year. We have not yet achieved the same level of traction internationally and we have decided to redirect our resources towards the domestic opportunity for now. This was not an easy decision as it affects our valued colleagues abroad, however it allows us to sharpen our focus on the large, profitable and rapidly growing domestic business."

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