Overview
Local business platform's Q4 revenue slightly beat analyst expectations
2025 net income increased 10% yr/yr, driven by growth in Services and product innovation
Company announced agreement with OpenAI to enhance AI transformation
Outlook
Yelp expects 2026 net revenue between $1.455 bln and $1.475 bln
Company anticipates 2026 adjusted EBITDA between $310 mln and $330 mln
Yelp focuses on AI transformation to drive growth in 2026
Result Drivers
SERVICES ADVERTISING - Services advertising revenue increased 8% yr/yr to a record $948 mln, driving overall growth despite challenges in local business sectors
PRODUCT INNOVATION - Introduction of over 55 new features and updates contributed to record net revenue, per CEO Jeremy Stoppelman
AI TRANSFORMATION - Focus on AI tools and agreement with OpenAI to enhance consumer engagement and business efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $359.99 mln | $358.70 mln (9 Analysts) |
Q4 Net Income | $37.80 mln | ||
Q4 Operating Income | $48.89 mln | ||
Q4 Pretax Profit | $51.58 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Yelp Inc is $33.00, about 42.2% above its February 11 closing price of $23.21
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw49xBCza
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)