Yelp Inc YELP reported a second-quarter net revenue increase of 16.2% year-over-year to $298.88 million, beating the consensus of $286.43 million.
Paying advertising locations surpassed pre-pandemic levels, increasing by 4% from Q1 and 8% Y/Y to a record 569,000. Advertising revenue from Services businesses increased by 9% from Q1 and 14% Y/Y.
EPS improved to $0.11 from $0.05 in 2Q21, beating the consensus of $0.01.
The company recorded income from operations of $16 million, compared to a loss of $(1.08) million a year ago.
Adjusted EBITDA rose 5.5% Y/Y to $67.23 million, and margin contracted by 228 bps to 22.5%.
Yelp’s net cash provided by operating activities year-to-date totaled $78.23 million versus $109.11 million a year ago. It held cash and cash equivalents of $422.21 million as of June 30, 2022.
3Q22 Outlook: Yelp expects revenue of $300 million -$310 million vs. a consensus of $297.98 million and Adjusted EBITDA of $65 million -$75 million.
FY22 Outlook, raised: Yelp raised net revenue guidance to $1.18 billion - $1.20 billion vs. a consensus of $1.17 billion from the prior expectation of $1.16 billion-$1.18 billion.
Adjusted EBITDA guidance raised to $265 million -$285 million from $260 million -$280 million.
Price action: YELP shares are trading higher by 14.51% at $37.01 during the post-market session on Thursday.
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