Yelp. Inc. (NYSE: YELP) announced its financial results for the first quarter ended March 31, 2017. Even though revenue increased 24%, shares of Yelp plunged 25% in after-hours trade Tuesday after missing analysts’ estimates.
According to the company, revenue increased 24% to $197.3 million, but was below expectations of $198 million. The company reported a net loss of $4.8 million, or $0.04 per share in the first quarter, compared to a loss of $15.5 million, or $0.20 per share in the same period last year. Adjusted earnings per share was $0.19 per share, beating estimates of $0.16 per share.
“We had a solid first quarter, growing revenue by 24% and accelerating traffic growth across the app, desktop and mobile website,” Jeremy Stoppelman, Yelp’s co-founder and chief executive officer, said in the statement on Tuesday.
“In addition, engagement per unique visitor continues to grow, accelerating on the app where we derive the majority of our activity. Our recent acquisitions of Nowait and Turnstyle introduce more ways for consumers to interact through Yelp, while also enhancing our ability to deliver value to business owners,” he said.
Yelp lowered its guidance for the full year. Revenue is expected to be between $850 million and $865 million, which was below estimates of $888.7 million.