Yelp Shares Rise As Q2 Loss Narrows, Lifts Full-year Revenue Outlook

(RTTNews) - Shares of Yelp, Inc. (YELP) gained more than 7 percent in extended trades Wednesday after the consumer review website's second-quarter loss narrowed from last year and results beat analysts' estimates. The company also forecast revenue for the third quarter above analysts' expectations and raised its full-year revenue outlook.

Cumulative reviews for the quarter grew 41 percent year-over-year to more than 42.5 million. Average monthly unique visitors grew 38 percent to about 108 million, while active local business accounts surged 62 percent from the year-ago period to about 51,400.

Yelp noted that in the latest quarter, about 40 percent of local ads were shown on mobile devices and approximately 59 percent of searches were on mobile, including mobile web and app. Additionally, Yelp launched a number of mobile upgrades including the Nearby feature which suggests businesses and activities based on location, behavior, friends' activities, and other data.

San Francisco-based Yelp's second-quarter net loss was $0.88 million or $0.01 per share, narrower than loss of $1.98 million or $0.03 per share in the year-ago period. On average, fourteen analysts polled by Thomson Reuters expected the company to report loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew 69 percent to $55.02 million from $32.65 million in the prior-year quarter. Analysts had a consensus revenue estimate of $53.29 million.

Looking ahead to the third quarter, Yelp forecast revenues in a range of $58 million to $59 million. Analysts have a consensus revenue estimate of $57.43 million.

For fiscal 2013, Yelp now forecasts revenue in a range of $222 million to $224 million, up from the prior range of $216 million to $218 million. The revised outlook represents growth of about 62 percent compared to the previous year. Analysts currently expect revenues of $219.88 million for the year.

YELP closed Wednesday's regular trading session at $41.80, up $0.01 or 0.02 percent on a volume of 4.25 million shares. In after-hours, the stock further gained $3.01 or 7.20 percent to $44.81.