Yelp Beats Street Estimates In Q2 With Revenue Of $55M, EPS Loss Of $0.01

Today Yelp beat expectations, reporting second-quarter revenue of $55 million, and a per-share loss of $0.01. Analysts had expected the company to lose $0.04 per share on revenue of $53.3 million.

That’s a beat, but not a massive victory. However, the company’s net revenue increase of 69 percent compared to the second quarter of 2012 has sent its stock up nearly 7 percent in after-hours trading. Investors like what they see.

The company’s vanity, if perhaps useful metrics, point up and to the right: Average monthly traffic for the company is up to 108 million unique visitors, representing growth of 38 percent year over year. Yelp now has 51,400 “active local businesses,” up 62 percent in the last year.

After adjustments, Yelp’s EBTIDA came in at $7.8 million.

The Great Mobile Shift continues apace, with Yelp showing 40 percent of its advertisements on mobile devices. However, while companies such as Facebook are seeing their mobile incomes rapidly increase, Yelp’s 40 percent number is only a 4 percent improvement on its first-quarter figure. Also, the company doesn’t break out its mobile revenue as some other companies do, merely its mobile advertising share, which could easily not correlate directly to income portion.

Yelp’s cash position is essentially unchanged in the past six months, growing by under $2 million to rest at the end of the quarter at $96 million in cash and equivalents.

All told, it was a solid quarter for Yelp, slightly beating expectations, keeping its cash in place, and growing its traffic. Still, if it wants to fundamentally change how the market values it, an acceleration will be required.

Top Image Credit: Jakrapong Kongmalai