By Dhirendra Tripathi
Investing.com – Yelp stock (NYSE:) jumped 9% Friday as the company’s second-quarter results beat estimates and that helped it raise its annual guidance one more time.
More restaurants advertising and users returning to dining drove the online user review platform’s revenue in the second quarter.
As many multi-location advertisers returned to spend, paying advertising locations reached 528,000, an increase of 150,000 from the second quarter of 2020. Average revenue per location reached a record high. As a result, advertising revenue from services businesses even topped 2019 second quarter levels.
Consumers’ rapid return to restaurants in the second quarter drove a record number of diners seated via Yelp, which was up 70% from the first quarter.
The company grew the percentage of monetized leads of all kinds in its services categories — phone calls, URL clicks and requests — to approximately 25%.
Yelp’s second-quarter net revenue grew 52% year-over-year to $257 million, resulting in a net income of $4 million when analysts expected it to book a loss. Revenue was also higher than estimates.
The company now anticipates full-year net revenue to come between $1.01 billion and $1.03 billion. Adjusted earnings before interest, taxes, depreciation and amortization for the full year is seen in the range of $200 million to $220 million. It had first raised its guidance in May.
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