Yelp narrows loss in 3Q, revenue beats Street
SAN FRANCISCO (AP) — Online review site Yelp Inc. narrowed its loss in the recent quarter, helped by a steady increase in traffic and expansion into more cities.
The company lost $2 million, or 3 cents per share, in the July-to-September period. That compares with a loss of $3.8 million, or 24 cents per share, in the same period a year earlier. Yelp was still privately held last year and it had far fewer outstanding shares, which made its loss larger on a per-share basis.
Revenue jumped 63 percent to $36.4 million.
Analysts, on average, expected a loss of 3 cents per share on revenue of $35.9 million, according to FactSet.
Yelp forecast revenue of $40 million to $40.5 million in the current quarter, straddling the average analyst forecast of $40.3 million.
The San Francisco-based company makes money from advertising on its site, which lets ordinary people review local restaurants, bars, stores and other businesses. It said the number of people visiting at least once a month grew 37 percent from last year to about 84 million, and the number of reviews grew 49 percent.
The company expanded into Asia during the quarter, launching Yelp in Singapore. It also scored a win with Apple, getting its reviews integrated into the "Siri" personal assistant software on the iPhone.
Yelp's shares fell 7 cents to close at $24.03. The company went public in early March, with an initial public offering priced at $15 per share.