Yelp Drops as Secondary Offering Weighs
Updated from 4:16 p.m. to include updated share price and news of secondary offering.
NEW YORK ( TheStreet) -- Yelp
The San Francisco-based online urban city guide reported a loss of 4 cents a share on $61.2 million in revenue, as revenue grew 68% year over year. Analysts surveyed by Thomson Reuters were expecting a gain of 3 cents per share on $59.41 million in revenue.
During the quarter, Yelp noted average monthly unique visitors grew 41% year over year to approximately 117 million, and active local business accounts grew 61% to approximately 57,200.
"We saw another quarter of strong momentum thanks to the high-quality, authentic content contributed by Yelpers around the world," said Jeremy Stoppelman, Yelp's CEO, in the company's press release. "Our focus on connecting consumers with great local businesses continues to drive our success. In the third quarter, we improved the user experience by adding the ability to write and post reviews from mobile and launched new features such as the customer activity feed for business owners. Looking to the rest of the year and beyond, we are well positioned to capture the large local opportunity ahead of us through our innovation around mobile, geographic expansion and closing the loop with local businesses."
During the quarter, the company noted that approximately 46% of ads were shown on mobile devices, with approximately 62% of the searches coming from mobile devices.
Yelp gave fourth-quarter guidance, saying it expects net revenue between $66 million and $67 million, with adjusted EBIDTA between $9 million and $10 million. Analysts surveyed by Thomson Reuters are expecting Yelp to post revenue of $64.8 million during the fourth quarter.
The company also raised its 2013 revenue guidance. It now expects revenue between $228 million and $229 million, with adjusted EBITDA is expected to be in the range of $28 million to $29 million.
Yelp also announced it would be doing a secondary offering, selling approximately $250 million in Class A common stock. Yelp will grant the underwriters an option to purchase an additional $37.5 million in shares. The company said the proceeds of the offering would be for additional working capital and general corporate purposes, as well as acquisitions.
Goldman Sachs , Citigroup , and Jefferies will be bookrunning managers for the offering. Oppenheimer and Cowen and will be co-managers for the offering.
Shares closed the regular session higher, gaining 1.8% to close at $ 68.81.
--Written by Chris Ciaccia in New York
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