Yelp Reports Fourth Quarter and Full Year 2020 Financial Results

Fourth quarter Internet Income of $233 million

Internet Earnings grew 23% from the fourth quarter of 2019 to $21 million

Fourth quarter Adjusted EBITDA margin was 26%

Expects return to sustainable income progress in 2021

Yelp Inc. (NYSE: YELP), the corporate that connects folks with nice native companies, as we speak posted its monetary outcomes for the fourth quarter and full 12 months ended December 31, 2020 within the This fall and Full Yr 2020 Shareholder Letter accessible on its Investor Relations web site at www.yelp-ir.com.

“2020 was a transformational 12 months for Yelp,” stated Jeremy Stoppelman, Yelp’s co-founder and chief govt officer. “We preserved our monetary power all through the pandemic as we elevated the tempo of product innovation to assist customers and native companies keep linked, whereas persevering with to make vital progress on our long-term technique. We elevated monetization in Residence & Native Providers and accomplished the realignment of our go-to-market channels, driving extra income progress via our Self-serve channel. As we glance forward, we’re assured in our potential to return to sustainable income progress in 2021.”

Quarterly Convention Name

Yelp will host a stay Q&A session as we speak at 2:00 p.m. Pacific Time to debate the fourth quarter and full 12 months 2020 monetary outcomes and outlook for the primary quarter and full 12 months of 2021. The webcast of the Q&A might be accessed on the Yelp Investor Relations web site at www.yelp-ir.com. A replay of the webcast will likely be accessible on the identical web site.

About Yelp

Yelp Inc. (www.yelp.com) connects folks with nice native companies. With unmatched native enterprise data, images, and assessment content material, Yelp supplies a one-stop native platform for customers to find, join, and transact with native companies of all sizes by making it simple to request a quote, be a part of a waitlist, and make a reservation, appointment, or buy. Yelp was based in San Francisco in July 2004.

Story continues

Yelp intends to make future bulletins of fabric monetary and different data via its Investor Relations web site. Yelp will even, infrequently, disclose this data via press releases, filings with the Securities and Change Fee, convention calls, or webcasts, as required by relevant legislation.

Ahead-Wanting Statements

This press launch incorporates forward-looking statements referring to, amongst different issues, Yelp’s future efficiency, together with Yelp’s potential to return to sustainable progress in 2021, which can be primarily based on its present expectations, forecasts, and assumptions that contain dangers and uncertainties.

Yelp’s precise outcomes may differ materially from these predicted or implied and reported outcomes shouldn’t be thought of as a sign of future efficiency. Components that would trigger or contribute to such variations embody, however will not be restricted to:

• fluctuations within the variety of COVID-19 instances, the tempo at which vaccinations are administered in the US, and the timeframe for the lifting of COVID-19-related shelter-in-place orders and enterprise restrictions;

• the tempo of reopening and restoration by native economies and financial restoration in the US usually;

• Yelp’s potential to keep up and broaden its base of advertisers, notably as many companies scale back spending on promoting in reference to COVID-19;

• Yelp’s potential to proceed to function successfully with a primarily distant work power and entice and retain key expertise;

• Yelp’s restricted working historical past in an evolving trade;

• Yelp’s potential to generate adequate income to regain profitability, notably in mild of the continuing impression of COVID-19 and Yelp’s reduction initiatives; and

• Yelp’s potential to generate and preserve adequate high-quality content material from its customers.

Non-GAAP Monetary Measures

This press launch and statements made throughout the above referenced webcast could embody data referring to EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, every of which the Securities and Change Fee has outlined as a “non-GAAP monetary measure.”

We outline EBITDA as web earnings (loss), adjusted to exclude: provision for (profit from) earnings taxes; different earnings, web; and depreciation and amortization.

We outline Adjusted EBITDA as web earnings (loss), adjusted to exclude: provision for (profit from) earnings taxes; different earnings, web; depreciation and amortization; stock-based compensation expense; and, in sure intervals, sure different earnings and expense gadgets, equivalent to restructuring prices and charges associated to shareholder activism. We outline Adjusted EBITDA margin as Adjusted EBITDA divided by web income.

Adjusted EBITDA and Adjusted EBITDA margin are key measures utilized by Yelp administration and the board of administrators to know and consider working efficiency and tendencies, to arrange and approve Yelp’s annual funds and to develop short- and long-term operational plans. Specifically, the exclusion of sure bills in calculating Adjusted EBITDA can present a helpful measure for period-to-period comparisons of Yelp’s major enterprise operations. Accordingly, Yelp believes that Adjusted EBITDA and Adjusted EBITDA margin present helpful data to traders and others in understanding and evaluating its working ends in the identical method as its administration and board of administrators. Starting in 2021, Yelp now not considers EBITDA a key measure utilized by its administration and the board of administrators and can stop offering this quantity going ahead.

EBITDA and Adjusted EBITDA, which aren’t ready underneath any complete set of accounting guidelines or ideas, have limitations as analytical instruments and you shouldn’t think about them in isolation or as substitutes for evaluation of Yelp’s monetary outcomes as reported in accordance with usually accepted accounting ideas in the US (“GAAP”). Specifically, EBITDA and Adjusted EBITDA shouldn’t be considered as substitutes for, or superior to, web earnings (loss) ready in accordance with GAAP as a measure of profitability or liquidity. A few of these limitations are:

• though depreciation and amortization are non-cash fees, the property being depreciated and amortized could have to get replaced sooner or later, and EBITDA and Adjusted EBITDA don’t replicate all money capital expenditure necessities for such replacements or for brand spanking new capital expenditure necessities;

• EBITDA and Adjusted EBITDA don’t replicate adjustments in, or money necessities for, Yelp’s working capital wants;

• EBITDA and Adjusted EBITDA don’t replicate the impression of the recording or launch of valuation allowances or tax funds that will characterize a discount in money accessible to Yelp;

• Adjusted EBITDA doesn’t think about the possibly dilutive impression of equity-based compensation;

• Adjusted EBITDA doesn’t take into consideration any earnings or prices that administration determines will not be indicative of ongoing working efficiency, equivalent to restructuring prices and charges associated to shareholder activism; and

• different corporations, together with these in Yelp’s trade, could calculate EBITDA and Adjusted EBITDA in another way, which reduces their usefulness as comparative measures.

Due to these limitations, you need to think about EBITDA, Adjusted EBITDA and Adjusted EBITDA margin alongside different monetary efficiency measures, web earnings (loss) and Yelp’s different GAAP outcomes.

The next is a reconciliation of web earnings (loss) to EBITDA and Adjusted EBITDA (in hundreds, besides percentages; unaudited):

View supply model on businesswire.com: https://www.businesswire.com/news/home/20210209006054/en/

Contacts

Investor Relations Contact
Kate Krieger
ir@yelp.com