Yelp Inc. (NYSE: YELP) reported second-quarter 2017 results after markets closed Thursday. The local business guide company posted adjusted diluted earnings per share (EPS) of $0.25 on revenues of $208.9 million. In the second quarter of 2016, Yelp reported EPS of $0.01 per share on revenues of $173.43 million. The consensus estimates for the quarter called for a net loss of $0.03 and $204.93 million in revenue.
On a GAAP basis, Yelp posted EPS of $0.09 per share compared with the year ago EPS of $0.01.
Yelp blew past consensus estimates and its own revenue guidance given at the end of the first quarter. For the third quarter the company expects revenues in a range of $217 to $222 million and adjusted EBITDA of $32 to $35 million. For the full year the company expects revenues of $855 to $865 million and adjusted EBITDA of $143 to $153 million. That’s an increase of $5 million on the low-end estimate.
Yelp revised its number of unique desktop visitors for each of the past 3 quarters, but said it does not believe the adjustments are material to its total traffic for the affected periods.
In the second quarter, approximately 28 million unique devices accessed Yelp via the mobile app on a monthly average basis, an increase of 24% compared to the same period in 2016 and up from 26 million in the first quarter of 2017. Paying advertising accounts rose by 18% year over year to about 148,000.
CFO Lanny Baker said:
Our second quarter financial performance reflects the overall health of our business. We are pleased to sell Eat24 at a price that we believe demonstrates the value we’ve created over the past two years. We are also announcing a share repurchase that reflects confidence in the business and commitment to efficient management of shareholder capital.
The repurchase plan calls for the buyback of $200 million in the company’s common stock with no time limit.
Shares closed at $31.37 Thursday and rocketed nearly 18% to $36.87 after hours in a 52-week range of $26.93 to $43.41. The consensus price target on the stock was $31.63 before this afternoon’s report.
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