Economy

Yelp stock slides after the company cuts full year guidance

The company fell over 5% in initial after-hours trading.

Revenues rose 19.4% from past year to $222.4 million, also topping analysts' view for $220.75 million.

Among key "metrics" for the quarter, Yelp said its number of "cumulative reviews" rose by 23%, year over year, to 142 million, while the total number of paying advertising accounts rose by 18% to "approximately 155,0002". This compares to analyst estimates of $220.8 million, according to Yahoo Finance.

For the current quarter, the company sees revenue in a race of $211 million to $216 million, which is below the consensus for $233 million.

Yelp Inc (NYSE:YELP) late Wednesday posted market-beating third quarter earnings results but offered a weak revenue outlook for the fourth quarter, sending its shares plunging in aftermarket trading.

Yelp's Chief Financial Officer Lanny Baker told analysts in a conference call after the earnings report that the outlook reflects "third-quarter business trends" and the company's sale of its online food ordering unit Eat24 to Grubhub, a deal that closed October 10.

Still, the local business listing website saw double-digit growth in the third quarter for advertising revenue, transactions revenue, the number of reviews and the number of devices accessing its app, compared to previous year. Year-to-date, YELP has gained 20.72%, versus a 16.84% rise in the benchmark S&P 500 index during the same period.



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