On November 2, 2023, Yelp Inc (YELP, Financial), a platform that connects people with local businesses, released its financial results for the third quarter ended September 30, 2023. The company reported a record net revenue of $345 million, marking a 12% increase year over year. The net income also saw a significant surge, increasing by 539% year over year to $58 million. Adjusted EBITDA increased by 30% year over year to a record $96 million.
Financial Performance Highlights
Yelp's co-founder and chief executive officer, Jeremy Stoppelman, attributed the strong performance to the company's product-led strategy. He noted that the record net revenue was driven by record advertising revenue in the services category, with a 25% growth in the self-serve channel and a 9% increase in ad clicks year over year. The company's chief financial officer, David Schwarzbach, also highlighted that this was Yelp's 10th consecutive quarter of double-digit revenue growth.
Financial Statements Overview
According to the company's condensed consolidated balance sheets, as of September 30, 2023, Yelp Inc (YELP, Financial) had total assets of $1.027 billion, with cash and cash equivalents amounting to $305 million. The total liabilities stood at $287.7 million, resulting in a total stockholders' equity of $739.6 million.
The condensed consolidated statements of operations showed a net revenue of $345.1 million for the third quarter of 2023, up from $308.9 million in the same period in 2022. The net income attributable to common stockholders was $58.2 million, or $0.79 per diluted share, a significant increase from $9.1 million, or $0.13 per diluted share, in the third quarter of 2022.
The condensed consolidated statements of cash flows indicated a net cash provided by operating activities of $227.1 million for the nine months ended September 30, 2023. After accounting for purchases of property, equipment, and software, the free cash flow stood at $206.3 million.
Outlook
Following the strong performance in the third quarter, Yelp Inc (YELP, Financial) raised its full-year outlook. The company now expects net revenue to be in the range of $1.332 billion to $1.337 billion and adjusted EBITDA to be between $319 million and $324 million.
Despite the impressive results, Yelp Inc (YELP, Financial) acknowledges the uncertainties and risks associated with macroeconomic factors, including inflation, rising interest rates, supply chain issues, and the impact of the COVID-19 pandemic. The company remains committed to its product-led strategy and is optimistic about the opportunities ahead to drive profitable growth and long-term shareholder value.
Explore the complete 8-K earnings release (here) from Yelp Inc for further details.
