NYSE$YELP

Yelp Inc. · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Yelp reported strong financial results for Q4 and the full year 2024, with net revenue and profitability exceeding outlook ranges, driven by growth in advertising revenue from Services businesses.

Yelp delivered record net revenue and strong profitability in 2024, with net revenue reaching $362 million in Q4, up 6% year-over-year, and adjusted EBITDA of $101 million, up 5%. The company's strategic focus on Services drove double-digit revenue growth, while challenges in Restaurants, Retail & Other categories persisted. Yelp also continued to invest in product innovation, including AI-powered features, and repurchased $62.5 million in shares during Q4.

  • Net revenue for Q4 2024 was $362 million, a 6% increase year-over-year, exceeding the high end of the outlook range.
  • Adjusted EBITDA for Q4 2024 was $101 million, a 5% increase year-over-year, also above the high end of the outlook range.
  • Net income for Q4 2024 increased by 54% to $42 million, with net income margin rising four percentage points to 12%.
  • The company repurchased approximately 1.7 million shares for $62.5 million in Q4 2024, demonstrating a commitment to returning capital to shareholders.

Headline financials

Total Revenue

$362M

Previous: $342M+5.7%
EPS (adj)

$0.62

Previous: $0.37+67.6%
Adjusted EBITDA

$101M

Previous: $96.1M+5.2%
Adjusted EBITDA Margin

28.0%

Previous: 28.0%+0.0%
Net Income Margin

12.0%

Previous: 8.0%+50.0%
Stock-based Compensation as % of Revenue

9.6%

No prior period
Capital Expenditures

-$11M

Previous: -$6M-83.6%
Net Income

$42.2M

Previous: $27.4M+54.1%
Operating Income

$53.4M

Previous: $25M+113.6%
Gross Profit

$317M

Previous: $302M+4.8%
R&D Expense

$74.9M

Previous: $78.3M-4.3%

Revenue & EPS history

Yelp · Revenue · Quarterly

$362M

Q4 2024+5.7%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Yelp · $345M total across 1 segment · Q3 2023

  • Services Advertising
    $345M

Forward guidance

For Q1 2025, Yelp expects net revenue between $350 million and $355 million and adjusted EBITDA between $65 million and $70 million. For the full year 2025, net revenue is expected to be in the range of $1.470 billion to $1.485 billion, and adjusted EBITDA between $345 million and $360 million.

Tailwinds

  • Continued focus on high-return areas to drive increased profitability.
  • Services category expected to continue driving business performance.
  • Plans to hold headcount approximately flat in 2025, leveraging AI for operational efficiencies.
  • Commitment to reducing stock-based compensation expense to less than 8% of revenue by end of 2025 and less than 6% by end of 2027.
  • Continued share repurchases planned for 2025, subject to market and economic conditions.

Headwinds

  • Category trends from 2024, with pressure on Restaurants, Retail & Other (RR&O), are expected to persist.
  • Expenses are anticipated to increase seasonally from Q4 2024 to Q1 2025, primarily due to payroll taxes and benefits.
  • Higher cost of revenue, partly due to the RepairPal acquisition, is expected to modestly increase full-year expenses.
  • Efforts to reduce stock-based compensation expense will act as a headwind to adjusted EBITDA.
  • GAAP tax rate is subject to quarterly variability and factors outside direct control, limiting visibility into the applicable rate for future fiscal periods.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-1.4%

Avg return

30 days after

50%

30 / 60 earnings

Positive

+25.0%

Q2 2018

Best reaction

-28.8%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.1%-19.7%-18.4%
Q4 2025-8.1%-5.0%+4.4%
Q3 2025-10.0%-7.5%-7.6%
Q1 2025+9.2%+14.5%+3.5%
Q4 2024-7.9%-6.4%-13.6%
Q3 2024-1.9%+4.3%+5.9%
Q2 2024+0.4%+1.3%+1.6%
Q1 2024-6.2%-3.8%-6.4%
Q4 2023-13.1%-15.4%-14.3%
Q3 2023+7.1%+6.1%+6.1%
Q2 2023+3.2%+0.4%+0.1%
Q1 2023+1.0%+0.5%+23.7%
Q4 2022+0.1%-1.2%-10.2%
Q3 2022-17.6%-18.7%-17.9%
Q2 2022+16.7%+15.6%+3.4%
Q1 2022-9.2%-13.3%-11.9%
Q4 2021+1.0%+3.5%-10.3%
Q3 2021-3.2%-1.4%-12.9%
Q2 2021+9.0%+9.8%+4.8%
Q1 2021+1.9%+1.0%+0.7%
Q4 2020-2.4%-1.9%+10.1%
Q3 2020+14.2%+36.9%+53.5%
Q2 2020-17.7%-12.3%-17.6%
Q1 2020+6.0%+1.2%+22.3%
Q4 2019-0.4%-2.2%-33.4%
Q3 2019+6.3%+9.4%+2.0%
Q2 2019+7.0%+0.8%-4.8%
Q1 2019-16.1%-20.4%-22.4%
Q4 2018-1.8%+2.7%-9.7%
Q3 2018-28.8%-24.9%-22.9%
Q2 2018+25.0%+21.4%+17.1%
Q1 2018-8.1%-9.6%-12.3%
Q4 2017-12.8%-12.0%+5.3%
Q3 2017-1.6%-2.3%-6.1%
Q2 2017+24.2%+29.3%+33.3%
Q1 2017-20.6%-19.6%-14.8%
Q4 2016-13.5%-13.4%-16.6%
Q3 2016+9.5%+14.6%+11.3%
Q2 2016+16.3%+21.5%+20.7%
Q1 2016+22.5%
Q4 2015-13.3%
Q3 2015+0.2%
Q2 2015-25.7%
Q1 2015-23.1%
Q4 2014-20.5%
Q3 2014-19.8%
Q2 2014-3.3%
Q1 2014+8.7%
Q4 2013+15.0%
Q3 2013-0.8%
Q2 2013+23.2%
Q1 2013+23.8%
Q4 2010+4.2%
Q4 2012+0.8%
Q3 2011-20.5%
Q3 2012-14.9%
Q2 2011+15.6%
Q2 2012+10.2%
Q1 2011+3.7%
Q1 2012+3.7%

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