Yelp Reports Third-Quarter Revenue That Tops Analysts’ Estimates
(Bloomberg) -- Yelp Inc. reported quarterly sales that beat analysts’ estimates, suggesting small businesses are slowly recovering as Covid-19 lockdown restrictions relax in some places.
The local search and review provider said sales came in at $220.8 million. Analysts expected $203 million, according to data compiled by Bloomberg.
Shares of San Francisco-based Yelp rose about 3% in extended trading, after closing at $22.01 in New York earlier on Thursday.
Widespread pandemic lockdowns have hammered the retail stores, restaurants, nail salons and other small businesses that Yelp relies on for advertising revenue. Shares of the company have slumped more than 30% this year, while most other internet stocks have soared.
Thursday’s results suggest that some small businesses are beginning to increase marketing spending again as consumers emerge from lockdowns.
“Yelp’s third quarter results demonstrate our business’s considerable resilience,” said Yelp Chief Executive Officer Jeremy Stoppelman. “We are confident in our ability to return to sustainable growth in the new year while still managing the impacts of the pandemic.”
©2020 Bloomberg L.P.