Yelp Inc.’s stock dropped more than 15% in extended trading Thursday after the company reported quarterly results that topped analysts’ revenue and earnings estimates but offered weak guidance.
Yelp
YELP,
reported fiscal fourth-quarter net income of $27.4 million, or 40 cents a share, compared with net income of $20.15 million, or 29 cents a share, in the year-ago quarter.
Net revenue was $342.4 million, compared with $309.1 million a year ago. Annual net revenue increased 12% year over year to a record $1.34 billion.
Analysts surveyed by FactSet had expected on average net income of 38 cents a share on revenue of $341 million.
“Investments in our long-term strategic initiatives have led to multiple records as local advertisers continued to see the value of Yelp’s high-intent audience in 2023,” Yelp Chief Financial Officer David Schwarzbach said in a phone interview. “It was the best year in our history.”
Yelp offered fiscal first-quarter revenue guidance of between $330 million and $335 million, while analysts tracked by FactSet are modeling for $345 million.
Shares of Yelp have soared 43% over the past 12 months, while the broader S&P 500 index
SPX
has improved 23%.
