Why Would Anyone Want to Buy Yelp?
NEW YORK (TheStreet) –– Yelp
In an interview with TheStreet, Zillow
"The UGC that Yelp has and that TripAdvisor
It's a waterfall, made heavier by the fury of social media.
Speculation of a Yelp buyout follows last week's announcement that Priceline.com
The OpenTable deal prompted Yelp to surge on Friday, gaining 14%. Despite the surge, that's still sharply below Yelp's all-time high, set back in early March, when shares peaked at $101.75. Shares on Monday rose 0.4% to close at 71.53.
As Yelp continues to add more businesses and more users to its local-based services, the moat around the company gets bigger, and that's critical to sustaining the businesses, as it uses common language amid original content.
For the first-quarter, Yelp lost 4 cents a share on $76.4 million in revenue, as cumulative reviews grew 46% year over year to approximately 57 million. Yelp noted that active local businesses continue to take to the platform, as there are now approximately 74,000 local business accounts on the service, up 65% year over year.
Yelp's second-quarter guidance was above what Wall Street was expecting, as the company expects sales between $85 million and $86 million, slightly ahead of what Wall Street was thinking, at $85.44 million in sales. The company also bumped up its full year revenue guidance, as it now expects sales between $363 million and $367 million, representing 57% growth.