Yelp Q2 Earnings: Revenue Grows 67% to $33 Million

Yelp announced its earnings for Q2 2012 on August 1. Its revenue grew to $32.7 million, up 67% year-over-year. It also posted a smaller net loss than expected ($2 million), and managed to post impressive growth metrics fueled by its international expansion. Its stock price jumped nearly 20% following the earnings release, and its now trading at nearly $22.

Yelp’s CEO, Jeremy Stoppelman said:

“Yelp’s second quarter performance highlights the underlying power of our model. By focusing almost singularly on cultivating rich, authentic local content, we have created a unique platform that is rapidly becoming the de facto local search engine for connecting consumers with great local businesses. We are now active in 90 Yelp markets around the world and are seeing an increase in our consumer engagement, especially on mobile, where their connection to local businesses is enhanced by the location-based capabilities of their mobile devices.”

Yelp’s cumulative reviews grew to more than 30 million, up more than 54% since Q2 2011. Its average monthly unique visitors also grew 52% to more than 78 million, while registered local business accounts more than doubled to 32,000.

It expanded into 8 new markets in Q2 2011, which brings its total global market presence to 90. Yelp’s mobile app continues to become an increasingly significant part of its business, as it logged nearly 7.2 million monthly unique mobile devices in Q2. It continues to add features to its mobile apps, and the integration with Apple in iOS 6 would only further boost its mobile usage. Yelp also tied up with Microsoft’s Bing to power local search on it.

Yelp ended the quarter with nearly $122.6 million in cash and cash equivalents. Its cash burn rate has decreased in the last couple of quarters, and it seems on track to turn a profit soon.

via Yelp – SEC

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