Local business platform Yelp (NYSE: YELP) will be announcing earnings results this Thursday after market close. Here’s what you need to know.
Yelp met analysts’ revenue expectations last quarter, reporting revenues of $360 million, flat year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Yelp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Yelp’s revenue to decline 1.3% year on year, a reversal from the 7.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yelp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Yelp’s peers in the social networking segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 69.1%, beating analysts’ expectations by 8.8%, and Pinterest reported revenues up 17.8%, topping estimates by 4.4%. Reddit traded up 13.6% following the results while Pinterest was also up 9.2%.
Read our full analysis of Reddit’s results here and Pinterest’s results here.
There has been positive sentiment among investors in the social networking segment, with share prices up 11.8% on average over the last month. Yelp is up 14.3% during the same time and is heading into earnings with an average analyst price target of $25.63 (compared to the current share price of $29.14).
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