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.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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