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Yelp (YELP) Q4 Earnings and Revenues Beat Estimates, Up Y/Y
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Yelp (YELP - Free Report) reported fourth-quarter 2021 earnings of 30 cents per share beating the Zacks Consensus Estimate of 15 cents per share. The bottom line improved 11.1% from the year-ago quarter’s 27 cents per share.
Revenues jumped 17.2% year over year to $273.4 million and surpassed the Zacks Consensus Estimate of $273.1 million. The top line primarily reflected growth in advertising revenues.
Quarter in Detail
Advertising revenues (95.6% of total revenues) climbed 17% year over year to $261.4 million. This upside can primarily be attributed to higher customer spend, an increase in Paying Advertising Locations and an improved non-term customer (“NTC”) retention rate. Paying Advertising Locations reached 528,000, up 8,000 from the year-ago quarter, while the figure was down 7,000 from the previous quarter.
Within key categories, Paying Advertising Locations for Services business decreased 5,000 from the fourth quarter of 2020. Paying Advertising Locations for Restaurants, Retail & Other categories were up 13,000 from the fourth quarter, primarily driven by the relaxed pandemic-related restrictions.
Within Advertising, Services revenues grew 13.2% year over year to $157.2 million. Restaurants, Retail & Other revenues climbed 24.5% to $104.2 million.
Transaction revenues were $2.9 million in the fourth quarter of 2021, down 28% year over year on lower food take-out and delivery order volumes, as several restaurants resumed and increased their dine-in operations.
Other revenues jumped 38% to $9 million, as the company reduced relief incentives to the pandemic’s most affected customers in the form of waived fees. The surge in this segment’s revenues reflects benefits from the strong adoption of its Yelp Fusion program, which was introduced in May 2020.
Total costs and expenses flared up 16% year over year to $254 million, reflecting the company’s continued investments in its long-term growth initiatives.
Yelp’s fourth-quarter adjusted EBITDA increased 14.3% year over year to $68.1 million. However, the adjusted EBITDA margin contracted 100 bps from the year-ago quarter’s 26% to 25%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Yelp’s cash & cash equivalents were $479.8 million without any debt.
During fourth-quarter and full-year 2021, the company generated operating cash flow of $45 million and $212.7 million, respectively.
During fourth-quarter and full-year 2021, the company repurchased shares worth $85 million and $263 million, respectively.
Full-Year Highlights
For full-year 2021, Yelp reported revenues of $1.03 billion, up 18% year over year.
The company reported non-GAAP earnings of 50 cents per share against 2020’s loss of 27 cents per share.
Adjusted EBITDA surged 76% year over year to $246 million. Adjusted EBITDA margin expanded 800 basis points (bps) to 24% from year-ago quarter’s 16%.
Diners seated via Yelp surged 85% in 2021, supported by the relaxation of pandemic-related restrictions and increased vaccinations.
Guidance
For the first quarter of 2022, Yelp projects revenues between $260 million and $270 million.
Management plans to increase strategic investments in the first quarter, as a result of which, adjusted EBITDA is expected to be $35-$45 million.
The company estimates revenues between $1.16 billion and $1.18 billion. The adjusted EBITDA is anticipated in the range of $260 million to $280 million.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 27.4% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 1.9% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past seven days. For 2022, earnings estimates have moved north by 8.7% to $3.86 per share in the last seven days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 83.2% in the past year.
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Yelp (YELP) Q4 Earnings and Revenues Beat Estimates, Up Y/Y
Yelp (YELP - Free Report) reported fourth-quarter 2021 earnings of 30 cents per share beating the Zacks Consensus Estimate of 15 cents per share. The bottom line improved 11.1% from the year-ago quarter’s 27 cents per share.
Revenues jumped 17.2% year over year to $273.4 million and surpassed the Zacks Consensus Estimate of $273.1 million. The top line primarily reflected growth in advertising revenues.
Quarter in Detail
Advertising revenues (95.6% of total revenues) climbed 17% year over year to $261.4 million. This upside can primarily be attributed to higher customer spend, an increase in Paying Advertising Locations and an improved non-term customer (“NTC”) retention rate. Paying Advertising Locations reached 528,000, up 8,000 from the year-ago quarter, while the figure was down 7,000 from the previous quarter.
Yelp Inc. Price, Consensus and EPS Surprise
Yelp Inc. price-consensus-eps-surprise-chart | Yelp Inc. Quote
Within key categories, Paying Advertising Locations for Services business decreased 5,000 from the fourth quarter of 2020. Paying Advertising Locations for Restaurants, Retail & Other categories were up 13,000 from the fourth quarter, primarily driven by the relaxed pandemic-related restrictions.
Within Advertising, Services revenues grew 13.2% year over year to $157.2 million. Restaurants, Retail & Other revenues climbed 24.5% to $104.2 million.
Transaction revenues were $2.9 million in the fourth quarter of 2021, down 28% year over year on lower food take-out and delivery order volumes, as several restaurants resumed and increased their dine-in operations.
Other revenues jumped 38% to $9 million, as the company reduced relief incentives to the pandemic’s most affected customers in the form of waived fees. The surge in this segment’s revenues reflects benefits from the strong adoption of its Yelp Fusion program, which was introduced in May 2020.
Total costs and expenses flared up 16% year over year to $254 million, reflecting the company’s continued investments in its long-term growth initiatives.
Yelp’s fourth-quarter adjusted EBITDA increased 14.3% year over year to $68.1 million. However, the adjusted EBITDA margin contracted 100 bps from the year-ago quarter’s 26% to 25%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Yelp’s cash & cash equivalents were $479.8 million without any debt.
During fourth-quarter and full-year 2021, the company generated operating cash flow of $45 million and $212.7 million, respectively.
During fourth-quarter and full-year 2021, the company repurchased shares worth $85 million and $263 million, respectively.
Full-Year Highlights
For full-year 2021, Yelp reported revenues of $1.03 billion, up 18% year over year.
The company reported non-GAAP earnings of 50 cents per share against 2020’s loss of 27 cents per share.
Adjusted EBITDA surged 76% year over year to $246 million. Adjusted EBITDA margin expanded 800 basis points (bps) to 24% from year-ago quarter’s 16%.
Diners seated via Yelp surged 85% in 2021, supported by the relaxation of pandemic-related restrictions and increased vaccinations.
Guidance
For the first quarter of 2022, Yelp projects revenues between $260 million and $270 million.
Management plans to increase strategic investments in the first quarter, as a result of which, adjusted EBITDA is expected to be $35-$45 million.
The company estimates revenues between $1.16 billion and $1.18 billion. The adjusted EBITDA is anticipated in the range of $260 million to $280 million.
Zacks Rank & Key Picks
Yelp currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 27.4% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 1.9% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past seven days. For 2022, earnings estimates have moved north by 8.7% to $3.86 per share in the last seven days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 83.2% in the past year.