Yelp ( NYSE: YELP ) has jumped 8.3% postmarket after beating expectations with fourth-quarter revenues , leading to a record year in the measure for the consumer-recommendations company.
Revenues rose 13% to $309.1M and showed strong advertiser demand across categories, the company said.
Total costs and expenses rose just 8.6%, leading to a 70% jump in operating income (to $33.4M). Net income declined by 13% thanks to sharply higher provisions for income taxes ($16.7M, vs. a year-ago benefit of nearly $3M).
For the full year, net revenue rose 16% to a record $1.2B, while net income dipped by about $3M, to $36M. Total advertising revenue jumped 15% to a record $1.1B, and paying advertising locations rose 7% vs. 2021.
Ad revenue from the Services category came to $694M, and ad revenue from Restaurants, Retail and Other businesses rose 17% to $441M, mainly driven by growth in advertising locations.
On the consumer side, demand stayed below pre-pandemic levels, and app unique devices were flat with 2021.
“Record net revenue, driven by record advertising revenue from services businesses as well as in our most efficient sales channels, reflected strong advertiser demand across categories," CEO Jeremy Stoppelman said. "We also reached record levels in the number of business locations that advertise on Yelp and the average amount each location spends, signaling that our product investments are paying off."
It's guiding to 2023 net revenue of $1.29B-$1.31B, and adjusted EBITDA of $290M-$310M.
Conference call to come at 5 p.m. ET .
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Yelp leaps 8% as revenue beat caps off record 2022