YELP - Yelp reports beat-and-raise quarter on advertising strength shares gain ~14% after hours

Shares of Yelp ( NYSE: YELP ) rose 14.5% to $37 in Thursday postmarket trading, after the online platform reported record Q2 revenue on the back of growth in advertiser demand and raised its FY 2022 guidance.

YELP posted Q2 GAAP EPS of $0.11 which beat estimates by $0.12 . Its Q2 revenue of $298.88M, which the company said was an all time high for it, also beat expectations by $14.58M .

"Our product-led strategy continued to generate robust advertiser demand for our offerings across a broad set of categories, leading our business to new highs in the second quarter," YELP CEO Jeremy Stoppelman and CFO David Schwarzbach said in a letter to shareholders .

Yelp ( YELP ) runs an online website and a mobile application that allows users to connect to local businesses and then leave reviews for others to see.

The company said its Q2 advertising revenue gained 16% Y/Y to $284M, with both the services and restaurants categories showing growth. Higher aggregate customer spend was another driver.

YELP's paying advertising locations surpassed pre-pandemic levels, reaching a record 569K.

The strong quarter led Yelp ( YELP ) to raise its FY 2022 revenue guidance to a range of $1.18B to $1.20B. It had previously forecasted revenue of $1.16B to $1.18B. The consensus revenue estimate is $1.15B.

The company also guided Q3 revenue of $300M to $310M vs. consensus of $293.45M.

YELP stock has lost 10.8% YTD.

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