Yelp Inc (NYSE:YELP) shares plummeted after hours despite the company’s earnings beat.
For its fourth quarter, the review site and app reported non-GAAP earnings of 19 cents per share, topping the Zacks Investment Research consensus estimate of 5 cents per share. On a GAAP basis, net income was $142.21 million, or $1.60 per diluted share, due in part to a $164.8 million pre-tax gain from the sale of Eat24.
On the revenue front, Yelp raked in $218.25 million for the period, marking a 12% increase compared to the year-ago quarter. Analysts polled by Zacks were calling for revenue of $215.12 million. Excluding revenues from new acquisitions and Eat24 — which the company sold — net revenue surged 20% year-over-year.
“We finished 2017 strong with rising growth in new advertiser acquisition and continued improvements in revenue retention from the prior year,” said Yekp CEO Jeremy Stoppelman.
“In 2018, we are focused on increasing consumer usage through deepening our product experience in the Restaurants category and attracting advertisers through expanding sales channels and increased ad product flexibility.”
For its first quarter of fiscal 2018, Yelp projects revenue in the range of $218 million to $221 million, while full-year revenue is slated to be between $935 million and $965 million. Analysts polled by Zacks are calling for first-quarter revenue of $219.63 million and full-year revenue of $953.55 million, in line with estimates.
YELP stock plummeted 9.3% after the bell on Wednesday despite the earnings beat and in-line guidance.
