July 31 Consumer reviews website Yelp Inc
posted a smaller-than-expected quarterly loss, helped
by a stronger mobile advertising business, and it forecast
third-quarter revenue above analysts' expectations.
Yelp shares jumped as much as 5 percent at $44 per share in
trading after the bell. They have almost doubled since Yelp went
public in March last year, as the company has gained from
surging demand for information on mobile phones and tablets.
Yelp's mobile app makes it easier for people to discover
local businesses, read user reviews or rate them. It combines
Yelp's reviews and other relevant information with knowledge of
a user's location.
Yelp said it got about 40 percent of its local ads from
mobile devices, and 59 percent of search from mobile, which
includes the mobile app and web.
The company said it expects third-quarter revenue of $58
million to $59 million, above the $57.4 million analysts had
estimated, according to Thomson Reuters I/B/E/S.
The company has been expanding into restaurant bookings,
event management and payments.
It bought San Francisco-based online restaurant reservation
company SeatMe Inc for $12.7 million this month to compete more
closely with OpenTable Inc.
More than half its traffic comes from Google Inc. A
good number of referrals also come from Apple Inc.
Its net loss narrowed to $0.9 million, or 1 cent per share,
in the second quarter, from $2.0 million, or 3 cents per share,
a year earlier.
Revenue rose 68 percent to $55.0 million.
Analysts were expecting a loss of 4 cents per share, on
revenue of $53.3 million.
About three quarters of the company's revenue comes from
The company was founded by former PayPal engineers Jeremy
Stoppelman and Russel Simmons as a start-up idea in a business
incubator in 2004.