Shares of Yelp Rise After Earnings Guidance is Announced

Shares of Yelp

are up about nine percent in after hours trading Wednesday as the company reported its quarterly results. The local connections company reported fourth-quarter revenue of $70.7 million, reflecting 72% growth from the fourth quarter of 2012 Cumulative reviews grew 47% year over year to approximately 53 million. Average monthly unique visitors grew 39% year over year to approximately 120 million. Active local business accounts grew 69% year over year to approximately 67 thousand. Net loss in the fourth quarter of 2013 was $(2.1) million, or $(0.03) per share, compared to a net loss of $(5.3) million, or $(0.08) per share, in the fourth quarter of 2012. Adjusted EBITDA for the fourth quarter of 2013 was approximately $10.4 million, compared to $1.8 million for the fourth quarter of 2012. For the first quarter of 2014, net revenue is expected to be between $73.5 million to $74.5 million, which represents growth of approximately 60% compared to the first quarter of 2013. Adjusted EBITDA is expected to be in the range of $8 million to $9 million. Stock-based compensation is expected to be in the range of $10 million to $11 million, and depreciation and amortization is expected to be approximately 5% of revenue. For the full year of 2014, net revenue is expected to be in the range of $353 million to $358 million, representing growth of approximately 53% compared to the full year of 2013. Adjusted EBITDA is expected to be in the range of $54 million to $58 million. Stock-based compensation is expected to be in the range of $43 million to $45 million, and depreciation and amortization is expected to be approximately 5% of revenue. Many have pointed out that Yelp has purely moved on its future guidance expectations.