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Yelp Inc. (YELP - Free Report) recently withdrew its first quarter and 2020 financial guidance citing the uncertainty regarding the coronavirus pandemic, which is impacting global business and consumer activities.
Yelp provides information through online communities on restaurants, shopping, nightlife, financial, health and other services. However, lockdowns and restrictions on public life are affecting these businesses. This, in turn, is affecting Yelp.
During its fourth-quarter earnings conference call on Feb 13, Yelp had mentioned that it expects 2020 revenues to grow between 10% and 12% year over year and adjusted EBITDA by 1 to 2 percentage points. It had also expected margins to expand again in 2020.
The Zacks Consensus Estimate for Yelp’s 2020 revenues is currently pegged at $1.1 billion, indicating growth of 8.31% from the prior-year quarter.
Jeremy Stoppelman, co-founder and CEO of Yelp, noted, "Even as Yelp remains well positioned with a broad customer base and strong balance sheet, we believe it is appropriate to withdraw our first quarter and full-year 2020 guidance. While we cannot determine the full extent of COVID-19’s impact on our business at this time, we are monitoring this rapidly evolving situation closely and look forward to discussing our business in greater detail as part of our first quarter 2020 earnings results."
The rapid spread of the coronavirus globally has created a bubble of uncertainty, which is affecting several small and large companies.
For instance, Sabre Corp. (SABR - Free Report) was recently reported to be temporarily cutting salaries and stopping 401(k) contributions for its employees as a result of the challenges faced by the travel industry due to the coronavirus.
Further, in February, Apple (AAPL - Free Report) issued an investor update stating that it does not anticipate meeting the revenue guidance provided on Jan 28, 2020, for second-quarter fiscal 2020. The company also stated that “worldwide iPhone supply will be temporarily constrained” due to the impact of the outbreak of coronavirus.
Apple’s discouraging view is also expected to weigh on Cirrus Logic’s (CRUS - Free Report) fourth-quarter fiscal 2020 revenues. The company generates major part of revenues by selling audio amplifier chips utilized in iPhone devices. Notably, Apple, its largest client, accounted for 83% of Cirrus Logic’s sales in the fiscal third quarter.
It remains to be seen what further implications the coronavirus crisis adds to the global economy.
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Yelp (YELP) Withdraws 2020 Guidance Amid Coronavirus Scare
Yelp Inc. (YELP - Free Report) recently withdrew its first quarter and 2020 financial guidance citing the uncertainty regarding the coronavirus pandemic, which is impacting global business and consumer activities.
Yelp provides information through online communities on restaurants, shopping, nightlife, financial, health and other services. However, lockdowns and restrictions on public life are affecting these businesses. This, in turn, is affecting Yelp.
During its fourth-quarter earnings conference call on Feb 13, Yelp had mentioned that it expects 2020 revenues to grow between 10% and 12% year over year and adjusted EBITDA by 1 to 2 percentage points. It had also expected margins to expand again in 2020.
The Zacks Consensus Estimate for Yelp’s 2020 revenues is currently pegged at $1.1 billion, indicating growth of 8.31% from the prior-year quarter.
Jeremy Stoppelman, co-founder and CEO of Yelp, noted, "Even as Yelp remains well positioned with a broad customer base and strong balance sheet, we believe it is appropriate to withdraw our first quarter and full-year 2020 guidance. While we cannot determine the full extent of COVID-19’s impact on our business at this time, we are monitoring this rapidly evolving situation closely and look forward to discussing our business in greater detail as part of our first quarter 2020 earnings results."
Yelp Inc. Revenue (TTM)
Yelp Inc. revenue-ttm | Yelp Inc. Quote
Uncertainty Looms Large
The rapid spread of the coronavirus globally has created a bubble of uncertainty, which is affecting several small and large companies.
For instance, Sabre Corp. (SABR - Free Report) was recently reported to be temporarily cutting salaries and stopping 401(k) contributions for its employees as a result of the challenges faced by the travel industry due to the coronavirus.
Further, in February, Apple (AAPL - Free Report) issued an investor update stating that it does not anticipate meeting the revenue guidance provided on Jan 28, 2020, for second-quarter fiscal 2020. The company also stated that “worldwide iPhone supply will be temporarily constrained” due to the impact of the outbreak of coronavirus.
Apple’s discouraging view is also expected to weigh on Cirrus Logic’s (CRUS - Free Report) fourth-quarter fiscal 2020 revenues. The company generates major part of revenues by selling audio amplifier chips utilized in iPhone devices. Notably, Apple, its largest client, accounted for 83% of Cirrus Logic’s sales in the fiscal third quarter.
It remains to be seen what further implications the coronavirus crisis adds to the global economy.
Yelp currently sports a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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