Yelp Inc. ‘s stock was initially up 2.7% in extended trading Thursday after the company reported record-tying quarterly revenue and earnings that blew past Street estimates.
The online reviews site
reported third-quarter net income of $18.1 million, or 23 cents a share, compared with a net loss of $1 million, or a penny a share, in the year-ago quarter. Revenue leaped 22% to $269.2 million from $220.8 million a year ago.
“We delivered a 26% Adjusted EBITDA margin, reflecting our structurally more efficient business,” Yelp Chief Financial Officer David Schwarzbach told MarketWatch before the earnings were released. He noted advertising revenue from restaurants, retail and other businesses increased 28% year over year and 8% from the second quarter of 2021.
Analysts surveyed by FactSet had expected a net loss of a penny a share on revenue of $262 million.
Shares of Yelp are up 22% so far in 2021, while the broader S&P 500 index
has gained 24% this year.