EX-99.1 2 yelpq1-25ex991pressrelease.htm EX-99.1 Document

EXHIBIT 99.1

Product Innovation and Services Growth
Drove Yelp’s First Quarter 2025 Results

Net Revenue increased by 8% year over year to $359 million

Net Income increased by 72% year over year to $24 million, reflecting a 7% margin

Adjusted EBITDA grew 32% year over year to $85 million, reflecting a 24% margin1

Updates 2025 Net Revenue outlook to the range of $1.465 billion to $1.485 billion; and Adjusted
EBITDA2 outlook to the range of $345 million to $365 million

SAN FRANCISCO--(BUSINESS WIRE)--May 8, 2025-- Yelp Inc. (NYSE: YELP), the trusted platform that connects people with great local businesses, today announced its financial results for the first quarter ended March 31, 2025 in the Q1 2025 Shareholder Letter available on its Investor Relations website at yelp-ir.com.

“Our first quarter results demonstrate the strength of our services business and the progress we’ve made against our product roadmap,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Services revenue increased by 14% year over year in the first quarter, achieving the 16th consecutive quarter of double-digit growth, and we continued to see momentum in our product-led strategy. We recently rolled out 15 new features and updates to enhance the consumer experience and help businesses manage their operations more efficiently. Looking ahead, we’re excited about the lineup of AI advancements on our roadmap that will further transform the Yelp experience and streamline operations for local businesses. We believe that these efforts will unlock new opportunities for growth and enable us to deliver long-term value to our shareholders.”

“We exceeded our expectations in the first quarter, delivering 8% year-over-year revenue growth and strong profitability,” said David Schwarzbach, Yelp’s chief financial officer. “Adjusted EBITDA increased by 32% year over year to $85 million, $15 million above the high end of our outlook range and representing a four percentage point year-over-year improvement in our adjusted EBITDA margin. We believe our consistent execution and disciplined expense management position us well to navigate a complex environment and deliver long-term, profitable growth.”

Quarterly Conference Call

Yelp will host a live Q&A session today at 2:00 p.m. Pacific Time to discuss its first quarter financial results and outlook for the second quarter and full year 2025. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.


1 See “Non-GAAP Financial Measures” for definitions of adjusted EBITDA and adjusted EBITDA margin, as well as reconciliations of adjusted EBITDA to net income (loss) and adjusted EBITDA margin to net income (loss) margin, the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”).
2 Yelp has not reconciled its adjusted EBITDA outlook to GAAP net income (loss) because it does not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other income, net and provision for (benefit from) income taxes, which are reconciling items between adjusted EBITDA and GAAP net income (loss). Because Yelp cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss). For more information regarding the non-GAAP financial measures discussed in this release, please see “Non-GAAP Financial Measures” below.


About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.
Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including its expected financial results for 2025, its ability to drive shareholder value over the long term and its ability to deliver long-term profitable growth, that are based on its current expectations, forecasts and assumptions that involve risks and uncertainties.
Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:

•macroeconomic uncertainty — including related to inflation, interest rates, tariffs, labor and supply chain issues, as well as severe weather events and the prevalence of seasonal respiratory illnesses — and its effect on consumer behavior, user activity and advertiser spending;
•Yelp’s ability to maintain and expand its base of advertisers, particularly if advertiser turnover substantially worsens and/or consumer demand significantly degrades;
•Yelp’s ability to drive continued growth through its strategic initiatives;
•Yelp’s ability to continue to operate effectively with a primarily remote work force and attract and retain key talent;
•Yelp’s limited operating history in an evolving industry; and
•Yelp’s ability to generate and maintain sufficient high-quality content from its users.

Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.

Investor Relations Contact:
Kate Krieger
ir@yelp.com

Press Contact:
Amber Albrecht
press@yelp.com



YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$222,028 $217,325 
Short-term marketable securities102,384 100,581 
Accounts receivable, net
158,178 155,325 
Prepaid expenses and other current assets45,121 43,648 
Total current assets527,711 516,879 
Property, equipment and software, net79,238 75,669 
Operating lease right-of-use assets20,848 24,112 
Goodwill133,809 130,980 
Intangibles, net56,395 58,787 
Other non-current assets167,202 177,140 
Total assets$985,203 $983,567 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities$163,640 $131,322 
Operating lease liabilities — current13,107 20,679 
Deferred revenue5,647 2,973 
Total current liabilities182,394 154,974 
Operating lease liabilities — long-term20,403 22,470 
Other long-term liabilities54,388 62,154 
Total liabilities257,185 239,598 
Stockholders’ equity:
Common stock
— — 
Additional paid-in capital1,923,554 1,903,598 
Treasury stock(1,580)(3,909)
Accumulated other comprehensive loss(12,864)(15,431)
Accumulated deficit(1,181,092)(1,140,289)
Total stockholders’ equity
728,018 743,969 
Total liabilities and stockholders’ equity
$985,203 $983,567 





YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
20252024
Net revenue$358,534 $332,752 
Costs and expenses:
Cost of revenue(1)
34,828 27,355 
Sales and marketing(1)
146,284 147,791 
Product development(1)
83,905 91,227 
General and administrative(1)
51,707 45,232 
Depreciation and amortization12,350 9,930 
Total costs and expenses329,074 321,535 
Income from operations29,460 11,217 
Other income, net5,771 7,724 
Income before income taxes35,231 18,941 
Provision for income taxes10,840 4,787 
Net income attributable to common stockholders$24,391 $14,154 
Net income per share attributable to common stockholders
Basic$0.37 $0.21 
Diluted$0.36 $0.20 
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic65,261 68,559 
Diluted67,324 72,247 
(1) Includes stock-based compensation expense as follows:
Three Months Ended
March 31,
20252024
Cost of revenue$1,171 $1,401 
Sales and marketing7,639 8,699 
Product development19,409 23,653 
General and administrative9,250 8,957 
Total stock-based compensation$37,469 $42,710 



YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20252024
Operating Activities
Net income$24,391 $14,154 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization12,350 9,930 
Provision for credit losses10,559 11,645 
Stock-based compensation37,469 42,710 
Amortization of right-of-use assets3,440 3,861 
Deferred income taxes3,287 (1,976)
Amortization of deferred contract cost6,013 6,151 
Other adjustments, net1,252 161 
Changes in operating assets and liabilities:
Accounts receivable(13,998)(13,183)
Prepaid expenses and other assets(617)(5,056)
Operating lease liabilities(9,902)(9,713)
Accounts payable, accrued liabilities and other liabilities23,751 14,171 
Net cash provided by operating activities97,995 72,855 
Investing Activities
Purchases of marketable securities — available-for-sale(15,134)(22,419)
Sales and maturities of marketable securities — available-for-sale13,610 25,395 
Purchases of other investments— (2,500)
Purchases of property, equipment and software(10,531)(6,987)
Other investing activities52 109 
Net cash used in investing activities(12,003)(6,402)
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans273 548 
Taxes paid related to the net share settlement of equity awards(19,486)(21,882)
Repurchases of common stock(62,500)(62,500)
Net cash used in financing activities(81,713)(83,834)
Effect of exchange rate changes on cash, cash equivalents and restricted cash652 (485)
Change in cash, cash equivalents and restricted cash4,931 (17,866)
Cash, cash equivalents and restricted cash — Beginning of period217,682 314,002 
Cash, cash equivalents and restricted cash — End of period$222,613 $296,136 



Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a “non-GAAP financial measure.”

We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, and other items that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.

Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported in accordance with generally accepted accounting principles in the United States (“GAAP”). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
•Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp’s working capital needs;
•Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
•Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
•Adjusted EBITDA does not take into account certain income and expense items, such as expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that management determines are not indicative of ongoing operating performance;
•Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and
•other companies, including those in Yelp’s industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp’s other GAAP results.



The following is a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):
Three Months Ended
March 31,
20252024
Reconciliation of Net Income to Adjusted EBITDA:
Net income$24,391 $14,154 
Provision for income taxes10,840 4,787 
Other income, net
(5,771)(7,724)
Depreciation and amortization12,350 9,930 
Stock-based compensation37,469 42,710 
Expenses related to acquired indemnification obligation(1)(2)
5,126 — 
Acquisition and integration costs(1)
539 — 
Fees related to shareholder activism(1)
— 599 
Adjusted EBITDA$84,944 $64,456 
Net revenue$358,534 $332,752 
Net income margin7 %4 %
Adjusted EBITDA margin24 %19 %
(1) Recorded within general and administrative expenses on our condensed consolidated statements of operations.
(2) Represents expenses recorded in connection with an indemnification obligation assumed in the RepairPal acquisition, which we do not consider to be part of our ongoing operations. We expect to be indemnified for such expenses and will also exclude any such amounts from adjusted EBITDA.
The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):
Three Months Ended
March 31,
20252024
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities$97,995 $72,855 
Purchases of property, equipment and software(10,531)(6,987)
Free cash flow$87,464 $65,868 
Net cash used in investing activities$(12,003)$(6,402)
Net cash used in financing activities$(81,713)$(83,834)