By 
Yelp Inc. generated record revenue for a fifthstraight quarter, and Chief Financial Officer David Schwarzbach told MarketWatch on Thursday that resilient ad-sales trends continue in the current quarter.
“Advertisers and consumers continue to navigate a complex macro environment, and are using our service to connect them to trusted local businesses,” Schwarzbach said in an interview.
Yelp
YELP,
-1.25%
reported third-quarter net income of $9.1 million, or 13 cents a share, compared with net income of $18.1 million, or 23 cents a share, in the same quarter a year ago. Net revenue improved 15% to $308.9 million from $269.2 million last year.
Analysts polled by FactSet expected net income of 21 cents a share on revenue of $308 million. Yelp’s stock initially rose over 4% in after-hours trading immediately following the release of the results, after declining 1.3% to $36.33 in regular trading.
Record advertising revenue from Yelp’s Services businesses ($181 million, up 15% year-over-year), and Restaurants, Retail & Other businesses ($113 million, up 13%) led sales.
Yelp narrowed its annual net revenue guidance to between $1.185 billion and $1.195 billion in 2022. Analysts are forecasting $1.197 billion, according to FactSet.
The results underscore continued ad demand at Yelp and offered much-needed relief to investors following some disappointing financial numbers from Alphabet Inc.’s
GOOGL,
-4.07%
GOOG,
-4.11%
Google, Facebook parent company Meta Platforms Inc.
META,
-1.80%,
and Snap Inc.
SNAP,
-3.98%.
Those companies, who rely heavily on advertising, have been battered by a confluence of inflation, foreign-exchange tailwinds, the war in Ukraine and a deepening recession.
Yelp shares are flat in 2022; the broader S&P 500 index
SPX,
-1.06%
is down 22%.
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