The share of online review site Yelp Inc. (NYSE: YELP) greatly boost 12.65 percent to $36.77, which set a 52-week-high, after the San Francisco based company released its stronger-than-expected second-quarter earning results and higher revenue projections in fiscal year 2016.
It is reported that the Yelp’s second quarter revenue increased 30 percent to $173.4 million, which is better than the company's projection. In the second quarter report, there are an increased 32 percent in local advertising and $174.6 million in the cost spending. Gross profit margin improved to 91.3% from 90.2% a year earlier. An accelerated 41 percent increase in local revenue, to $151.9 million; 37 percent growth in transactions revenue, to $15.5 million; and a 6 percent decline in other-segment revenue, to $6 million. Based on generally accepted accounting principles (GAAP), that translated to net income of $449,000, or a penny per share, up from a GAAP net loss of $0.02 per share in last year's second quarter.
On an adjusted (non-GAAP) basis, which adds perspective by excluding items like stock-based compensation, Yelp's net income grew 33.8% year over year, to $12.5 million, or $0.16 per share. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also grew 23.8% year over year, to $28.1 million.
Founded in 2004, Yelp went public in 2012 as a fast-growing internet company, which is mainly rely on selling advertisements to make money. In the struggling during multiple new competitors, Yelp will work hard to execute against its three strategic priorities of continuing to grow its core local ad business, boosting awareness of Yelp's platform, and continuing to drive transactions revenue higher, according to its CEO Jeremy Stoppelman.
In the following projection in 2016, Yelp now expects $700 million to $708 million in revenue, compared with its earlier view of $690 million to $702 million.