On August 8, 2024, Yelp Inc (YELP, Financial) released its 8-K filing for the second quarter of 2024, showcasing record net revenue and significant profitability growth. Yelp Inc operates in the online content market based in the United States, providing a web-based platform and mobile application that connects businesses with consumers through reviews, tips, photos, and videos. The company generates revenue primarily from advertising on its website and mobile app.
Performance Highlights
Yelp Inc (YELP, Financial) reported a net revenue of $357 million for Q2 2024, marking a 6% year-over-year increase and surpassing the analyst estimate of $353 million. Net income surged by 158% year-over-year to $38 million, reflecting an 11% margin. Adjusted EBITDA also saw a 9% year-over-year growth, reaching $91 million with a 26% margin.
“Yelp delivered strong profitability and record net revenue in the second quarter,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “The execution of our product-led strategy continued to drive results, particularly in home services, which grew approximately 15% year over year in the second quarter, as well as in our self-serve channel, which saw revenue increase about 20% year over year to a record level.”
Financial Achievements
Yelp Inc (YELP, Financial) adjusted its full-year outlook to $1.410 billion to $1.425 billion of net revenue and $325 million to $335 million of Adjusted EBITDA. This adjustment reflects the company's confidence in its strategic initiatives and robust product roadmap.
Income Statement Overview
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Revenue | $357 million | $337 million |
| Net Income | $38 million | $14.7 million |
| Adjusted EBITDA | $91 million | $83.9 million |
Balance Sheet and Cash Flow
Yelp Inc (YELP, Financial) reported total assets of $964.98 million as of June 30, 2024, compared to $1.014 billion at the end of 2023. The company's cash and cash equivalents stood at $252.4 million, down from $313.9 million at the end of 2023. Net cash provided by operating activities was $112.5 million for the first six months of 2024, compared to $122.3 million for the same period in 2023.
Analysis
Yelp Inc (YELP, Financial)'s performance in Q2 2024 demonstrates its ability to navigate a challenging operating environment, particularly for restaurants, retail, and other businesses. The company's focus on home services and self-serve channels has yielded positive results, contributing to record revenue and profitability. However, the decline in cash and cash equivalents and the increase in accounts receivable highlight potential areas of concern that investors should monitor closely.
“Net income margin increased six percentage points and adjusted EBITDA margin increased one percentage point from the previous year, reflecting our disciplined approach,” said David Schwarzbach, Yelp’s chief financial officer. “We’re particularly focused on the opportunity ahead in services to deliver shareholder value over the long term.”
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Yelp Inc for further details.
