Yelp (YELP) Second Quarter of Local Ad Acceleration - RBC
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
RBC Capital analyst, Mark Mahaney reiterated his Outperform rating on shares of Yelp (NYSE: YELP) and raised his price target to $48.00 from $36.00 after YELP posted another beat and raise quarter. The most important Local Ad segment accelerated to 41% Y/Y growth. The company continues to execute following a rocky 2015.
Revenue of $173.4MM came in above the Street @ $170MM. More importantly, Yelp’s $152MM Local Ad Revenue came in above the Street at $148MM and accelerated to 41% Y/Y growth from improving internal execution. EBITDA of $28MM came in above the Street @ $23MM. YELP raised 2016 Revenue & EBITDA guidance while the Q3 Revenue guide of $180-184MM beat the Street at $180MM. Q3 EBITDA guidance of $24-28MM was just below the Street’s $28.1MM expectation.
Six keys to the quarter:
1) Local Ad Revenue Growth – Second. Consecutive. Acceleration. Growth to 41% Y/Y from 40% Y/Y in Q2.
2) Very Robust Organic Rev Growth – of 38% Y/Y, which excludes the loss of the brand advertising biz.
3) Local Advertising Account Adds – Up Y/ Y with 7.4K adds vs. 6.9K in Q215, tho down from Q1’s record high adds of 10K.
4) Nowait Partnership – Yelp partnered with and invested $8MM in Nowait, a mobile platform for restaurants to manage their waitlists.
5) Visitor Growth – Stable and robust App Unique Devices growth of 27% Y/ Y and Mobile App growth is the Moatiest growth Yelp can have.
6) COO Transition – Jed Nachman has been promoted to COO, with Geoff Donaker retiring but continuing to serve as a strategic advisor to the company with a board seat.
Shares of Yelp closed at $32.64 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- Mizuho Securities Downgrades Community Health (CYH) to Underperform
- Jefferies Cuts Price Target on VCA Antech (WOOF) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital, Mark Mahaney
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!