What a week for the information technology section, the latest example being Yelp Inc (NYSE:YELP), which reported downbeat earnings for its third quarter.
The San Francisco-based Yelp, the company that "connects people with great local businesses" today announced net revenue was $262 million, up 9% from the third quarter of 2018, consistent with the Company’s outlook, driven primarily by growth in Advertising revenue
Net income, which includes $7 million in fees related to shareholder activism, was $10 million, or $0.14 per diluted share, compared to Net income of $15 million, or $0.17 per diluted share, in the third quarter of 2018
Shares repurchased totaled approximately 2.3 million in the third quarter at an aggregate cost of $77 million, which contributed to a 14% reduction of Yelp’s outstanding shares by since the start of the year
Yelp expects to accelerate revenue growth and expand Adjusted EBITDA margin again in the fourth quarter of 2019. Specifically, Yelp expects Net revenue to grow 11-13% over the prior year with Adjusted EBITDA margin increasing by 2-3 percentage points over 2018 levels
"We are pleased to have re-accelerated revenue growth, while at the same time increasing Adjusted EBITDA margin, in the third quarter," said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. "We expect this momentum to continue in the fourth quarter, with revenue growing double-digits compared to the prior year and margin expanding significantly once again."
Yelp shares leaped for the rafters, up $4.86, or 16.1%, to $34.98 as Friday’s session wound down.
