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Yelp Reports Second Quarter 2020 Financial Results

Published : Thursday, August 6, 2020, 1:05 pm
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Second Quarter 2020 Net Revenue of $169 Million

Net Loss of $24 Million

Adjusted EBITDA of $11 Million

As of June 30, 2020, the Company had $526 Million of Cash and Cash Equivalents

SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the second quarter ended June 30, 2020 in the Q2 2020 Shareholder Letter available on its Investor Relations website at www.yelp-ir.com.


“Our second quarter results demonstrate the resilience of our business, in spite of the significant headwinds faced by local economies following the emergence of COVID-19,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Due to our disciplined actions on expenses, coupled with solid revenue performance, we added $35 million of Cash and cash equivalents to our Balance sheet. Though the pace of economic recovery remains uncertain and will not be uniform, we have confidence in our ability to execute in this environment and in the strength of our diversified business.”

Quarterly Conference Call

Yelp will host a live Q&A session today at 2:00 p.m. Pacific Time to discuss the second quarter 2020 financial results. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at www.yelp-ir.com. A replay of the webcast will be available at the same website.

About Yelp

Yelp Inc. (www.yelp.com) connects people with great local businesses. With unmatched local business information, photos, and review content, Yelp provides a one-stop local platform for consumers to discover, connect, and transact with local businesses of all sizes by making it easy to request a quote, join a waitlist, and make a reservation, appointment, or purchase. Yelp was founded in San Francisco in July 2004.

Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including Yelp’s ability to execute in the current environment as well as the strength and resilience of its business, that are based on its current expectations, forecasts, and assumptions that involve risks and uncertainties.

Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:

  • the duration and magnitude of the COVID-19 pandemic and measures implemented to help control its spread;
  • the pace of reopening and recovery by local economies;
  • Yelp’s ability to maintain and expand its base of advertisers, particularly as many businesses reduce spending on advertising in connection with COVID-19;
  • Yelp’s limited operating history in an evolving industry;
  • Yelp’s ability to generate sufficient revenue to regain profitability, particularly in light of the ongoing impact of COVID-19 and Yelp’s relief initiatives; and
  • Yelp’s ability to generate and maintain sufficient high-quality content from its users.

YELP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

June 30,
2020

 

December 31,
2019

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

525,693

 

 

 

$

170,281

 

 

Short-term marketable securities

 

 

 

242,000

 

 

Accounts receivable, net

72,025

 

 

 

106,832

 

 

Prepaid expenses and other current assets

19,675

 

 

 

14,196

 

 

Total current assets

617,393

 

 

 

533,309

 

 

Long-term marketable securities

 

 

 

53,499

 

 

Property, equipment and software, net

106,732

 

 

 

110,949

 

 

Operating lease right-of-use assets

188,266

 

 

 

197,866

 

 

Goodwill

104,796

 

 

 

104,589

 

 

Intangibles, net

8,733

 

 

 

10,082

 

 

Restricted cash

910

 

 

 

22,037

 

 

Other non-current assets

46,655

 

 

 

38,369

 

 

Total assets

$

1,073,485

 

 

 

$

1,070,700

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

60,206

 

 

 

$

72,333

 

 

Operating lease liabilities — current

56,406

 

 

 

57,507

 

 

Deferred revenue

3,918

 

 

 

4,315

 

 

Total current liabilities

120,530

 

 

 

134,155

 

 

Operating lease liabilities — long-term

164,537

 

 

 

174,756

 

 

Other long-term liabilities

7,098

 

 

 

6,798

 

 

Total liabilities

292,165

 

 

 

315,709

 

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock

 

 

 

 

 

Additional paid-in capital

1,325,745

 

 

 

1,259,803

 

 

Accumulated other comprehensive loss

(11,845

)

 

 

(11,759

)

 

Accumulated deficit

(532,580

)

 

 

(493,053

)

 

Total stockholders' equity

781,320

 

 

 

754,991

 

 

Total liabilities and stockholders' equity

$

1,073,485

 

 

 

$

1,070,700

 

 

 

YELP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2020

 

2019

 

2020

 

2019

Net revenue

$

169,030

 

 

 

$

246,955

 

 

$

418,931

 

 

 

$

482,897

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue (1)

11,825

 

 

 

14,975

 

 

28,672

 

 

 

29,240

 

Sales and marketing (1)

96,289

 

 

 

122,045

 

 

233,586

 

 

 

246,361

 

Product development (1)

53,969

 

 

 

54,566

 

 

121,082

 

 

 

112,641

 

General and administrative (1)

26,402

 

 

 

30,932

 

 

69,938

 

 

 

62,224

 

Depreciation and amortization

12,582

 

 

 

12,240

 

 

24,940

 

 

 

24,116

 

Restructuring

3,312

 

 

 

 

 

3,312

 

 

 

 

Total costs and expenses

204,379

 

 

 

234,758

 

 

481,530

 

 

 

474,582

 

(Loss) income from operations

(35,349

)

 

 

12,197

 

 

(62,599

)

 

 

8,315

 

Other income, net

495

 

 

 

3,891

 

 

2,878

 

 

 

8,582

 

(Loss) income before income taxes

(34,854

)

 

 

16,088

 

 

(59,721

)

 

 

16,897

 

(Benefit from) provision for income taxes

(10,864

)

 

 

3,785

 

 

(20,228

)

 

 

3,229

 

Net (loss) income attributable to common stockholders

$

(23,990

)

 

 

$

12,303

 

 

$

(39,493

)

 

 

$

13,668

 

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to common stockholders

 

 

 

 

 

 

 

Basic

$

(0.33

)

 

 

$

0.16

 


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