Late Wednesday, Yelp Inc. (NYSE: YELP) reported financial results that exceeded expectations. Net revenue of $235 million for the second quarter exceeded the company’s outlook, driven by strength across Yelp’s advertising business. Net income improved to $11 million, or $0.12 per diluted share, compared to net income of $8 million, or $0.09 per diluted share, in the second quarter of 2017. Shares repurchased during the second quarter totaled approximately 771,000 at an aggregate cost of $32 million.
“Second quarter results were once again driven by strong revenue growth in our core Advertising business. We completed the transition to selling non-term local advertising in the quarter, which helped deliver record advertising account additions. Our growth initiatives elsewhere also produced encouraging results,” said Jeremy Stoppelman, CEO.
Advertising revenue per business location within the Home & Local Services category is about twice the average for all other categories combined. Advertising revenue growth in the category accelerated for the third consecutive quarter to more than 30% compared to the prior year, a rate that is more than one-and-a-half times greater than revenue growth in all remaining categories.