Yelp beats expectations with $173.4 million in Q2, 78 percent revenue retention
More than 70 percent of searches are from mobile, as are 63 percent of ad clicks.
Yelp announced Q2 2016 earnings this afternoon. The company had better than expected quarterly revenues of $173.4 million. Analysts had expected roughly $170 million.
Yelp saw roughly 30 percent year-over-year revenue growth and 78 percent annual revenue retention. The company offered guidance of $180 million to $184 million for Q3 and raised its full-year guidance to between $700 and $708 million.
Here are some key numbers discussed in the press materials and on the earnings call:
- Desktop Unique Visitors — 73.4 million
- Mobile Web Unique Visitors — 69.3 million
- App Users — 23 million
- International Web Visitors — 28.8 million
- Total Reviews — 108 million
- Percentage of Searches on Mobile — 72 percent
- Percentage of Ad Clicks on Mobile — 63 percent
- Local Advertising Accounts — 128,000
On the call, Yelp emphasized the potential of its transactions business, which earned just under $16 million (largely Eat24) this quarter. International revenues were a very modest $3.7 million. It also said that mobile app users are 10X more engaged than mobile web users.
Yelp revenue breakdown by category:
- Home & Local — 30 percent
- Restaurants — 14 percent
- Beauty & Fitness — 12 percent
- Health — 11 percent
- Shopping — 9 percent
- Other — 24 percent
Yelp also announced that current COO Geoff Donaker would be retiring from his role and would be replaced by current CRO Jed Nachman. Donaker will maintain an advisory relationship with Yelp and remain on its board.
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