(Logo: http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
- Revenue was
$27.4 million in the first quarter of 2012, reflecting 66% growth in revenue from the first quarter 2011 - Cumulative reviews grew 59% to 27.6 million
- Average monthly unique visitors grew 53% to 71.4 million*
- Active local business accounts grew 117% to 27,300
Net loss in the first quarter of 2012 was
"We are very pleased to report our first quarter as a public company," said
"Our initial public offering added
Business Highlights
- New market expansion: Yelp launched 11 new markets in the first quarter, including
Antwerp ,Brussels ,Oklahoma City ,Perth and Hampton Beach, increasing the total active markets worldwide to 82. - Yelp Mobile: Our mobile apps were used on approximately 6.3 million unique mobile devices on a monthly average basis for the quarter. Our development team released a total of nine updates for Yelp's iPhone and Android apps in the first quarter. Enhancements to the user experience included new features such as the release of photo feedback, new search filters (filter by what's hot/new and by businesses with deals) and the ability to view business owner replies.
- Distribution partnerships: Mercedes and Lexus integrated Yelp into their in-vehicle infotainment systems. Combined with Yelp's
BMW partnership announced in December, these relationships underscore the value that Yelp content provides to consumers on the go. OEMs are now working quickly to ensure that Yelp reviews are within reach from the dashboard. - Yelp for Business Owners: Yelp introduced a new set of dashboard metrics to make Yelp's business owner accounts even more insightful. The most notable improvement is the integration of mobile metrics which enables a business owner to track how many people placed a call to a business, mapped directions, purchased a Yelp Deal and/or uploaded photos.
- Yelp Deals: Yelp Deals continues to grow. More than 25,000 businesses offered deals to their local community in the first quarter.
Business Outlook
As of today, Yelp is initiating guidance for its second quarter of 2012 and full year 2012 revenue and adjusted EBITDA guidance.
- For the second quarter of 2012, revenue is expected to be in the range of
$29 million to $31 million . Adjusted EBITDA is expected to be a loss in the range of$(500,000) to $(800,000) . - For the full year of 2012, revenue is expected to be in the range of
$128 to $132 million , representing growth of 54% to 58% compared to the full year of 2011. Adjusted EBITDA is expected to be breakeven to slightly positive.
Quarterly Conference Call
Yelp will discuss its quarterly results today via teleconference at
About Yelp
Yelp connects people with great local businesses. Yelp was founded in
*Source: Google Analytics
Non-GAAP Financial Measures
This press release includes the following financial measure defined as "non-GAAP financial measures" by the
Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- adjusted EBITDA does not reflect changes in, or cash requirements for, the Company's working capital needs;
- adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
- adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and
- other companies, including companies in the Company's industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and the Company's other GAAP results. Additionally, the Company has not reconciled adjusted EBITDA guidance to net income guidance because it does not provide guidance for other income (expense) and provision for income taxes, which are reconciling items between net income (loss) and adjusted EBITDA. As items that impact net income (loss) are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, reconciliation to net income (loss) is not available without unreasonable effort. For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see "Reconciliation of Net Loss to Adjusted EBITDA" included in this press release.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of Yelp and its consolidated subsidiaries that are based on the Company's current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the second quarter and full year 2012, the future growth in Company revenue and continued investing by the Company in its future growth. The Company's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: the Company's short operating history in an evolving industry; the Company's ability to generate sufficient revenue to achieve or maintain profitability, particularly in light of its significant ongoing sales and marketing expenses; the Company's reliance on traffic to its website from search engines like
More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's prospectus included in its Registration Statement on Form S-1, as amended, copies of which may be obtained by visiting the Company's Investor Relations website at http://www.yelp-ir.com/phoenix.zhtml?c=250809&p=irol-irhome or the
Media Contact Information
Yelp Press Office
(415) 908-3679
stephanie@yelp.com
Investor Relations Contact Information
(415) 217-7722
yelp@blueshirtgroup.com
Yelp Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(In thousands) | |||||
(Unaudited) | |||||
March 31, |
December 31, | ||||
2012 |
2011 | ||||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ 130,737 |
$ 21,736 | |||
Accounts receivable, net |
7,179 |
8,257 | |||
Prepaid expenses and other current assets |
2,508 |
1,733 | |||
Total current assets |
140,424 |
31,726 | |||
Property, equipment and software, net |
10,649 |
9,881 | |||
Restricted cash |
1,497 |
365 | |||
Other assets |
517 |
1,849 | |||
Total assets |
$ 153,087 |
$ 43,821 | |||
Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) |
|||||
Current liabilities: |
|||||
Accounts payable |
$ 3,441 |
$ 2,973 | |||
Accrued liabilities |
8,030 |
7,685 | |||
Deferred revenue |
999 |
2,072 | |||
Total current liabilities |
12,470 |
12,730 | |||
Long-term liabilities |
3 |
3 | |||
Total liabilities |
12,473 |
12,733 | |||
Commitments and contingencies |
|||||
Redeemable preferred stock |
- |
55,435 | |||
Stockholders' equity (deficit) |
|||||
Common stock |
- |
- | |||
Additional paid-in capital |
191,448 |
16,625 | |||
Accumulated other comprehensive income (loss) |
242 |
271 | |||
Accumulated deficit. |
(51,076) |
(41,243) | |||
Total stockholders' equity (deficit) |
140,614 |
(24,347) | |||
Total liabilities, redeemable convertible preferred stock and stockholders' equity |
$ 153,087 |
$ 43,821 | |||
Yelp Inc. |
|||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||
(In thousands, except per share amounts) |
|||||||||||||
(Unaudited) |
|||||||||||||
Three Months Ended |
|||||||||||||
March 31, |
|||||||||||||
2012 |
2011 |
||||||||||||
Net revenue |
$ 27,385 |
$ 16,500 |
|||||||||||
Cost and expenses |
|||||||||||||
Cost of revenue (1) |
2,126 |
1,276 |
|||||||||||
Sales and marketing (1) |
18,770 |
11,271 |
|||||||||||
Product development (1) |
4,140 |
2,319 |
|||||||||||
General and administrative (1) |
10,729 |
3,617 |
|||||||||||
Depreciation and amortization |
1,361 |
819 |
|||||||||||
Total cost and expenses |
37,126 |
19,302 |
|||||||||||
Loss from operations |
(9,741) |
(2,802) |
|||||||||||
Other expense, net |
(30) |
108 |
|||||||||||
Loss before provision for income taxes |
(9,771) |
(2,694) |
|||||||||||
Provision for income taxes |
(31) |
(12) |
|||||||||||
Net loss |
(9,802) |
(2,706) |
|||||||||||
Accretion of redeemable convertible preferred stock |
(31) |
(47) |
|||||||||||
Net loss attributable to common stockholders |
$ (9,833) |
$ (2,753) |
|||||||||||
Net loss per share attributable to common stockholders: |
|||||||||||||
Basic |
$ (0.31) |
$ (0.19) |
|||||||||||
Diluted |
(0.31) |
$ (0.19) |
|||||||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders: |
|||||||||||||
Basic |
31,263 |
14,553 |
|||||||||||
Diluted. |
31,263 |
14,553 |
|||||||||||
(1) Includes stock-based compensation expense as follows: |
|||||||||||||
Three Months Ended |
|||||||||||||
March 31, |
|||||||||||||
2011 |
2010 |
||||||||||||
Cost of revenue |
$ 23 |
$ 9 |
|||||||||||
Sales and marketing |
1,124 |
271 |
|||||||||||
Research and development |
243 |
147 |
|||||||||||
General and administrative |
6,039 |
676 |
|||||||||||
Total stock-based compensation |
$ 7,429 |
$ 1,103 |
|||||||||||
Yelp Inc. | ||||
Condensed Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, | ||||
2012 |
2011 | |||
Operating activities |
||||
Net loss |
$ (9,802) |
$ (2,706) | ||
Adjustments to reconcile net income (loss) to net |
||||
cash (used in) provided by operating activities: |
||||
Depreciation and amortization |
1,361 |
819 | ||
Provision for doubtful accounts |
(10) |
(65) | ||
Stock-based compensation |
7,429 |
1,103 | ||
Loss on disposal of assets and web-site development costs |
1 |
5 | ||
Changes in operating assets and liabilities: |
||||
Accounts receivable |
1,090 |
577 | ||
Prepaid expenses and other assets |
(552) |
129 | ||
Accounts payable and accrued expenses |
(1,217) |
750 | ||
Deferred revenue |
(1,073) |
384 | ||
Net cash (used in) provided by operating activities |
(2,773) |
996 | ||
Investing activities |
||||
Purchases of property, equipment and software |
(367) |
(813) | ||
Capitalized website and software development costs |
(612) |
(537) | ||
Change in restricted cash |
(1,112) |
- | ||
Cash used in investing activities |
(2,091) |
(1,350) | ||
Financing activities |
||||
Proceeds from initial public offering, net of offering costs |
113,407 |
- | ||
Proceeds from issuance of common stock |
511 |
161 | ||
Net cash provided in financing activities |
113,918 |
161 | ||
Effect of exchange rate changes on cash |
(53) |
(116) | ||
Net increase in cash and cash equivalents |
109,001 |
(309) | ||
Cash and cash equivalents at beginning of period |
21,736 |
27,074 | ||
Cash and cash equivalents at end of period |
$ 130,737 |
$ 26,765 | ||
Yelp Inc. | ||||
Reconciliation of Net Loss to EBITDA | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
March 31, | ||||
2011 |
2010 | |||
Net loss |
$ (9,802) |
$ (2,706) | ||
Provision for income taxes |
31 |
12 | ||
Other income (expense), net |
30 |
(108) | ||
Depreciation and amortization |
1,361 |
819 | ||
EBITDA |
(8,380) |
(1,983) | ||
Stock-based compensation |
7,429 |
1,103 | ||
Adjusted EBITDA |
$ (951) |
$ (880) | ||
SOURCE