Yelp Inc. passed $1 billion in annual sales for the second time Thursday, topping analysts forecasts and issuing revenue guidance for fiscal 2022. The news initially propelled the company's stock up 6% in extended trading.
The online reviews site YELP reported fourth-quarter net income of $23 million, or 30 cents a share, compared with net income of $21 million, or a 27 cents a share, in the year-ago quarter. Net revenue leaped 17% to $273 million from $233 million a year ago.
For the fiscal year, Yelp topped $1 billion (actually, a record $1.03 billion) for the second time. It hauled in $1.014 billion in fiscal 2019 before dipping to $873 million in a pandemic-marred fiscal 2020 as small businesses retrenched.
"It was a banner year with record revenue and adjusted EBITDA margin (24%) as we increased our strategic investments throughout the year," Yelp Chief Financial Officer David Schwarzbach told MarketWatch.
Advertising growth led the way. Sales from Restaurants, Retail & Other (RR&O) businesses increased 18% year-over-year to $377 million. Yelp achieved the results following the realignment of its go-to-market channels in 2020, including the reduction of its local sales force to approximately 50% of pre-pandemic2019 levels.
Yelp also issued 2022 net revenue guidance of between $1.16 billion and $1.18 billion, as well as adjusted EBITDA in the range of $260 million to $280 million.
Analysts surveyed by FactSet had expected earnings of 14 cents a share on revenue of $272 million for Yelp's fourth quarter and $1.03 billion for the year. Those same analysts forecast $1.158 billion in 2022 revenue.
Shares of Yelp are down 5% so far in 2022, while the broader S&P 500 index SPX has retreated 5.5% this year.
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