Shares of Yelp (NYSE: YELP) opened 13% higher on Friday after the Company reported better-than-expected second quarter earnings. Yelp also announced its CFO Lanny Baker will be leaving the Company for an executive position at Eventbrite (NYSE: EB), a U.S.-based event management and ticketing website.
Yelp said it earned USD 0.16 per share for the three months ended June 30, up 30% year-over-year. Analysts on average forecasted earnings of USD 12 per share. The local business review site brought in USD 247 Million, up 5% year-over-year and in-line with Wall Street’s forecast.
The Company, which relies heavily on paying advertisers, said ad revenue was USD 238 Million, a 5% rise over the second quarter of 2018. The number of Paying advertising locations in the second quarter grew 6% year-over-year to 549,000.
“I am proud of our team’s execution of Yelp’s business transition in the first half, which helped us achieve our outlook for the second quarter and sets the stage for revenue acceleration in the second half,” said Jeremy Stoppelman, Yelp’s Co-founder and CEO. “The significant progress we have made this year, which includes delivering compelling new products, driving greater value to our advertisers, and growing our multi-location business, reinforces our confidence in achieving our financial outlook for 2019.”
In a letter to shareholders, the Company highlighted its newer products like Yelp Reservations and Yelp Waitlist. In June, it introduced Yelp Portfolios, which allows service-industry business owners to post completed projects along with pricing information.
For full-year 2019, Yelp expects net revenue growth of 8% to 10%.