Online reviews site Yelp (NYSE:YELP) announced a blowout third quarter last night, but it was not enough for investors, who were sending shares down 11% in Friday trading.
Yelp’s revenues climbed by 63% to $36.4 million, though the company suffered a net loss of $2 million, or 3 cents a share — both essentially in line with Wall Street estimates. As for full-year guidance, Yelp forecast revenues of $136.4 million to $136.9 million, slightly ahead of a consensus for $136.3 million.
It’s important to remember that Yelp provided preliminary results for Q3 last week, so there was little chance of a surprise, possibly helping explain today’s selloff.
On the conference call, Yelp CEO Jeremy Stoppelman provided some interesting details on the mobile strategy. It looks like the partnership with Apple (NASDAQ:AAPL) is getting off to a promising start, with integration with Siri and Maps. Yelp is getting accessed by more than 8 million mobile devices per month, up 64% over the past year. In all, about 45% of all searches are done via mobile.
In the current quarter, Yelp is putting ads into its apps. According to Stoppelman, the click-through rates have been “significantly higher than on the desktop.”
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.