Yelp stock (NYSE:YELP) is plummeting late in the day as the company reported its latest quarterly earnings results, which included revenue figures that were below what analysts were calling for in their consensus estimate.
The local-search service provider said that for its third quarter of fiscal 2018, it brought in a net income of $15 million, or 17 cents per share. The figure was ahead of the Wall Street consensus estimate of 10 cents per share.
Yelp added that its revenue for the period tallied up to $241.1 million, better than the $223.3 million that the Wall Street consensus estimate called for. Analysts were calling for the online-reviews site to bring in revenue of approximately $245.4 million.
CEO Jeremy Stoppelman added that the company’s underwhelming revenue is slated to continue into what is slated to be a weak holiday season. “While the shift to non-term advertising has opened our sales funnel, it has also made our results more sensitive to short-term operational issues,” he said in the release. ”
We have begun to address a number of the issues that impacted our third quarter results; however, we expect them to affect our fourth quarter results as well, as reflected in our business outlook.”
YELP stock took a nosedive after the bell on Thursday, falling roughly 27.9% as the company’s third-quarter revenue was well below expectations. Shares had been falling roughly 3.1% during regular trading hours in anticipation of the company’s quarterly results.