Yelp (YELP) Surpasses Q4 Revenue Expectations

Financial Highlights:

* Revenue: $362 million, exceeding analyst estimates by 5.7%.
* EPS (GAAP): $0.62, surpassing expectations by 17.9%.
* Adjusted EBITDA: $101.1 million, beating estimates by 15.4%.

Guidance for 2025:

* Revenue: $1.48 billion, meeting analyst expectations.
* EBITDA: $352.5 million, slightly below analyst estimates.

Key Metrics:

* Operating Margin: 14.8%, a substantial increase from 7.3% in Q4 2023.
* Free Cash Flow Margin: 16.6%, reflecting a stable long-term profile.

Company Overview:

Yelp is an online platform for discovering local businesses through user-generated reviews. Founded in 2004, it aims to connect consumers with local merchants.

Sales Growth:

Yelp has achieved a consistent 11% compounded annual growth rate over the past three years, indicating its offerings align with customer preferences.

Financial Health:

Yelp has maintained robust cash profitability, with an average free cash flow margin of 19.2% over the last two years.

Q4 Performance:

Yelp exceeded analysts' expectations for revenue, EPS, and EBITDA in Q4. However, EBITDA guidance for 2025 fell short of consensus estimates.

Investment Considerations:

While Q4 results were positive, investors should consider long-term fundamentals and valuation before making investment decisions.