EX-99.1 2 yelpq1-24ex991pressrelease.htm EX-99.1 Document

EXHIBIT 99.1

Investments in Services Drove
Yelp's First Quarter 2024 Results

Net Revenue increased by 7% year over year to $333 million

Net Income increased from the prior year to $14 million, reflecting a 4% margin

Adjusted EBITDA grew 19% year over year to $64 million

SAN FRANCISCO--(BUSINESS WIRE)-- May 9, 2024-- Yelp Inc. (NYSE: YELP), the trusted platform that connects people with great local businesses, today announced its financial results for the first quarter ended March 31, 2024 in the Q1 2024 Shareholder Letter available on its Investor Relations website at yelp-ir.com.

“In the first quarter, the strength and momentum in our services categories, particularly home services, offset a challenging environment for our restaurant, retail and other categories,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Request-a-Quote projects increased approximately 20% year over year, reflecting early positive results from our efforts to acquire services projects through paid search. We continued to execute against our robust product roadmap with the launch of Yelp Assistant, a conversational AI feature that intelligently guides consumers through the process of finding the right service pro for their project. I’m excited about the opportunities ahead to drive profitable growth and shareholder value over the long term.”

“Solid performance in our services categories coupled with our disciplined approach to growth set a strong foundation for the year,” said David Schwarzbach, Yelp’s chief financial officer. “In the first quarter, we recorded a 7% year-over-year increase in net revenue, with net income rising from the prior year to $14 million. Adjusted EBITDA grew by 19% year over year to $64 million, surpassing the high end of our outlook range and representing a 19% margin. Our strategic investments continue to show positive results, which gives us confidence in our outlook for the year.”

Quarterly Conference Call
Yelp will host a live Q&A session today at 2:00 p.m. Pacific Time to discuss the first quarter financial results and outlook for the second quarter and full year 2024. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.
Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including its expected financial results for 2024 and its ability to drive profitable growth and shareholder value over the long term, that are based on its current expectations, forecasts, and assumptions that involve risks and uncertainties.


Yelp’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:

•macroeconomic uncertainty — including related to inflation, interest rates and supply chain issues, as well as severe weather events — and its effect on consumer behavior, user activity and advertiser spending;
•the prevalence of seasonal respiratory illnesses, impact of fears or actual outbreaks of disease and any resulting changes in consumer behavior, economic conditions or governmental actions;
•Yelp’s ability to maintain and expand its base of advertisers, particularly if advertiser turnover substantially worsens and/or consumer demand significantly degrades;
•Yelp’s ability to drive continued growth through its strategic initiatives;
•Yelp’s ability to continue to operate effectively with a primarily remote work force and attract and retain key talent;
•Yelp’s limited operating history in an evolving industry; and
•Yelp’s ability to generate and maintain sufficient high-quality content from its users.

Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.

Investor Relations Contact:
Josh Willis
ir@yelp.com

Press Contact:
Amber Albrecht
press@yelp.com



YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,
2024		December 31,
2023
Assets
Current assets:
Cash and cash equivalents$296,045 $313,911 
Short-term marketable securities124,749 127,485 
Accounts receivable, net
147,685 146,147 
Prepaid expenses and other current assets38,421 36,673 
Total current assets606,900 624,216 
Property, equipment and software, net68,166 68,684 
Operating lease right-of-use assets44,524 48,573 
Goodwill102,833 103,886 
Intangibles, net7,309 7,638 
Other non-current assets163,745 161,726 
Total assets$993,477 $1,014,723 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$144,943 $132,809 
Operating lease liabilities — current39,365 39,234 
Deferred revenue6,988 3,821 
Total current liabilities191,296 175,864 
Operating lease liabilities — long-term38,008 48,065 
Other long-term liabilities42,200 41,260 
Total liabilities271,504 265,189 
Stockholders' equity:
Common stock
— — 
Additional paid-in capital1,809,530 1,786,667 
Treasury stock(8,329)(282)
Accumulated other comprehensive loss(13,950)(12,202)
Accumulated deficit(1,065,278)(1,024,649)
Total stockholders' equity721,973 749,534 
Total liabilities and stockholders' equity$993,477 $1,014,723 





YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
20242023
Net revenue$332,752 $312,438 
Costs and expenses:
Cost of revenue (1)
27,355 26,059 
Sales and marketing (1)
147,791 147,455 
Product development (1)
91,227 88,197 
General and administrative (1)
45,232 46,509 
Depreciation and amortization9,930 10,805 
Total costs and expenses321,535 319,025 
Income (loss) from operations11,217 (6,587)
Other income, net7,724 5,212 
Income (loss) before income taxes18,941 (1,375)
Provision for (benefit from) income taxes4,787 (197)
Net income (loss) attributable to common stockholders$14,154 $(1,178)
Net income (loss) per share attributable to common stockholders
Basic$0.21 $(0.02)
Diluted$0.20 $(0.02)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders
Basic68,559 69,821 
Diluted72,247 69,821 
(1) Includes stock-based compensation expense as follows:
Three Months Ended
March 31,
20242023
Cost of revenue$1,401 $1,382 
Sales and marketing8,699 9,114 
Product development23,653 25,867 
General and administrative8,957 9,894 
Total stock-based compensation$42,710 $46,257 



YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20242023
Operating Activities
Net income (loss)$14,154 $(1,178)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization9,930 10,805 
Provision for doubtful accounts11,645 6,784 
Stock-based compensation42,710 46,257 
Amortization of right-of-use assets3,861 7,899 
Deferred income taxes(1,976)(19,862)
Amortization of deferred contract cost6,151 5,738 
Asset impairment— 3,555 
Other adjustments, net161 576 
Changes in operating assets and liabilities:
Accounts receivable(13,183)(15,283)
Prepaid expenses and other assets(5,056)20,709 
Operating lease liabilities(9,713)(10,397)
Accounts payable, accrued liabilities and other liabilities14,171 18,641 
Net cash provided by operating activities72,855 74,244 
Investing Activities
Purchases of marketable securities — available-for-sale(22,419)(53,157)
Sales and maturities of marketable securities — available-for-sale25,395 23,355 
Purchases of other investments(2,500)— 
Purchases of property, equipment and software(6,987)(7,518)
Other investing activities109 40 
Net cash used in investing activities(6,402)(37,280)
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans548 14,647 
Taxes paid related to the net share settlement of equity awards(21,882)(19,354)
Repurchases of common stock(62,500)(49,999)
Net cash used in financing activities(83,834)(54,706)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(485)439 
Change in cash, cash equivalents and restricted cash(17,866)(17,303)
Cash, cash equivalents and restricted cash — Beginning of period314,002 307,138 
Cash, cash equivalents and restricted cash — End of period$296,136 $289,835 



Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a "non-GAAP financial measure."

We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as impairment charges and fees related to shareholder activism that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.

Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported in accordance with generally accepted accounting principles in the United States (“GAAP”). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. 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 all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
•Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp's working capital needs;
•Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
•Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
•Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as impairment charges and fees related to shareholder activism;
•Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and
•other companies, including those in Yelp’s industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp’s other GAAP results.



The following is a reconciliation of net income (loss) to Adjusted EBITDA, as well as the calculation of net income (loss) margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):
Three Months Ended
March 31,
20242023
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss)$14,154 $(1,178)
Provision for (benefit from) income taxes4,787 (197)
Other income, net(7,724)(5,212)
Depreciation and amortization9,930 10,805 
Stock-based compensation42,710 46,257 
Asset impairment(1)
— 3,555 
Fees related to shareholder activism(1)
599 — 
Adjusted EBITDA$64,456 $54,030 
Net revenue$332,752 $312,438 
Net income (loss) margin4 %— %
Adjusted EBITDA margin19 %17 %
(1) Recorded within general and administrative expenses on our condensed consolidated statements of operations.
The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):
Three Months Ended
March 31,
20242023
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities$72,855 $74,244 
Purchases of property, equipment and software(6,987)(7,518)
Free cash flow$65,868 $66,726 
Net cash used in investing activities$(6,402)$(37,280)
Net cash used in financing activities$(83,834)$(54,706)