0.62%
5.27%
19.33%
11.83%
-6.84%
17.95%
24.97%
AI Spotlight on YELP
Company Description
Yelp Inc.operates a platform that connects consumers with local businesses in the United States and internationally.The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services.
It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location Ad products, as well as enables businesses to deliver targeted search advertising to local audiences; and business listing page products.The company also offers other services comprising Yelp Reservations that provide online reservations for restaurants, nightlife, and other venues directly from their Yelp business pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses.Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website, as well as non-advertising partner arrangements.
It has strategic partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery.Yelp Inc.was incorporated in 2004 and is headquartered in San Francisco, California.
Market Data
| Last Price | 40.74 |
| Change Percentage | 0.62% |
| Open | 40.46 |
| Previous Close | 40.49 |
| Market Cap ( Millions) | 2681 |
| Volume | 27582 |
| Year High | 45.91 |
| Year Low | 32.56 |
| M A 50 | 38.73 |
| M A 200 | 36.67 |
Financial Ratios
| FCF Yield | 9.76% |
| Dividend Yield | 0.00% |
| ROE | 16.02% |
| Debt / Equity | 7.29% |
| Net Debt / EBIDTA | -115.66% |
| Price To Book | 3.7 |
| Price Earnings Ratio | 23.2 |
| Price To FCF | 10.25 |
| Price To sales | 1.93 |
| EV / EBITDA | 13.78 |
News
- Jan -09 - Here's Why YELP is a Must-Buy Stock Despite 12% Dip in a Year
- Jan -08 - YELP or RELX: Which Is the Better Value Stock Right Now?
- Jan -08 - Best Momentum Stocks to Buy for January 8th
- Jan -08 - Best Value Stocks to Buy for January 8th
- Dec -27 - Yelp Gains 13% in Three Months: How Should Investors Play the Stock?
- Dec -18 - Yelp: Terrific Value Investment For 2025, Even Amid A Tough Restaurant Environment
- Dec -11 - Yelp Adds New Features to Its Platform: What Should Investors Do?
- Dec -11 - Yelp: Proven Advertiser At Compelling Price
- Dec -10 - Yelp Adds AI-Powered Insights to Its Business Reviews
- Dec -10 - Yelp Unveils a Series of New AI-powered Features to Enhance Discovery and Connection with Local Businesses
- Dec -05 - 3 Internet Stocks to Buy From a Prospering Industry
- Nov -26 - Yelp Completes Strategic Acquisition of RepairPal
- Nov -12 - YELP Falls 21% YTD: Should Investors Buy, Sell or Hold the Stock?
- Nov -12 - Yelp (YELP) Crossed Above the 200-Day Moving Average: What That Means for Investors
- Nov -08 - Yelp to Expand Services Advertising Revenues With RepairPal Acquisition
- Nov -08 - YELP Q3 Earnings Beat: Will Weak Guidance Drag the Stock Down?
- Nov -08 - Yelp (YELP) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
- Nov -08 - Yelp (YELP) Surpasses Q3 Earnings Estimates
- Nov -07 - Yelp Inc. (YELP) Q3 2024 Earnings Call Transcript
- Nov -07 - Yelp just spent $80M on a site for car repair estimates
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Advertising - Services
Expected Growth : 7 %
What the company do ?
Yelp's advertising services enable businesses to reach targeted audiences through sponsored search results, display ads, and other formats, increasing visibility and driving customer engagement.
Why we expect these perspectives ?
Yelp's 7% growth in Advertising Services is driven by increasing adoption of online advertising, rising demand for location-based targeting, and growing popularity of Yelp's platform among small and medium-sized businesses. Additionally, Yelp's investments in artificial intelligence and machine learning are enhancing ad relevance and effectiveness, leading to higher ROI for advertisers and increased spending.
Segment n°2 -> Advertising - Restaurants, Retail & Other
Expected Growth : 5 %
What the company do ?
Advertising - Restaurants, Retail & Other from Yelp Inc. refers to the revenue generated from advertising on Yelp's platform by restaurants, retail, and other businesses.
Why we expect these perspectives ?
Yelp's 5% growth in Advertising - Restaurants, Retail & Other is driven by increasing online ordering and delivery adoption, rising demand for digital marketing solutions, and growing consumer engagement on the Yelp platform. Additionally, the company's investments in AI-powered advertising products and expansion into new markets are contributing to growth.
Segment n°3 -> Other
Expected Growth : 4 %
What the company do ?
Other from Yelp Inc. refers to revenue generated from Yelp's non-advertising products and services, including Yelp Reservations, Yelp WiFi, and other miscellaneous revenue streams.
Why we expect these perspectives ?
Yelp's 'Other' segment, with 4% growth, is driven by increasing demand for Yelp's non-advertising products, such as Yelp Reservations, Yelp Waitlist, and Yelp Knowledge, which provide additional revenue streams. Additionally, the company's focus on expanding its e-commerce capabilities and improving user engagement through enhanced features and experiences also contribute to this growth.
Segment n°4 -> Transactions
Expected Growth : 8 %
What the company do ?
Transactions from Yelp Inc. refer to the online ordering and food delivery services provided by Yelp, allowing customers to order food directly from local restaurants through the Yelp platform.
Why we expect these perspectives ?
Yelp's 8% growth driven by increasing adoption of online food ordering and delivery, expansion of Yelp Eat24, and growth in Yelp Core revenue. Additionally, rising demand for digital advertising, improved sales execution, and increased investments in product development and marketing contribute to the growth.
Yelp Inc. Products
| Product Range | What is it ? |
|---|---|
| Yelp Ads | Yelp Ads is a platform that allows businesses to advertise on Yelp, increasing their visibility and reach to potential customers. |
| Yelp Reservations | Yelp Reservations is a table management system that allows restaurants to manage reservations, waitlists, and table assignments. |
| Yelp Waitlist | Yelp Waitlist is a waitlist management system that allows restaurants to manage wait times, notify customers, and optimize seating. |
| Yelp Knowledge | Yelp Knowledge is a business intelligence platform that provides insights and analytics to help businesses understand their online presence and customer behavior. |
| Yelp WiFi | Yelp WiFi is a guest WiFi solution that allows businesses to offer free WiFi to customers in exchange for their contact information. |
| Yelp Reviews | Yelp Reviews is a review management platform that allows businesses to manage and respond to customer reviews. |
Yelp Inc.'s Porter Forces
Threat Of Substitutes
Yelp's services are unique, but users can substitute with other review platforms like Google Reviews or TripAdvisor. However, Yelp's strong brand recognition and large user base make it difficult for users to switch.
Bargaining Power Of Customers
Individual customers have limited bargaining power due to Yelp's large user base and diversified customer base. However, businesses may have some bargaining power due to their advertising revenue.
Bargaining Power Of Suppliers
Yelp's suppliers are primarily small businesses and individuals who provide content and reviews. They have limited bargaining power due to the large number of suppliers and the ease of replacing them.
Threat Of New Entrants
The threat of new entrants is high due to the low barriers to entry in the online review platform market. New entrants can easily replicate Yelp's business model, but Yelp's strong brand recognition and large user base provide a competitive advantage.
Intensity Of Rivalry
The online review platform market is highly competitive, with many players competing for market share. Yelp faces intense competition from Google Reviews, TripAdvisor, and other review platforms, which can lead to pricing pressure and advertising revenue competition.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 10.43% |
| Debt Cost | 3.95% |
| Equity Weight | 89.57% |
| Equity Cost | 11.13% |
| WACC | 10.38% |
| Leverage | 11.65% |
Yelp Inc. : Quality Control
Yelp Inc. passed 9 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| IAC | IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, … |
| NXST | Nexstar Media Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community websites and digital media services in … |
| TGNA | TEGNA Inc. operates as a media company in the United States. The company operates television stations that deliver television programming and digital content. It offers news content to consumers across … |
| CARG | CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive marketplace … |
| TWLO | Twilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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TEGNA
A-Score
1-Year Total Return ->
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Nexstar Media
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1-Year Total Return ->
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CarGurus
A-Score
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4
Yelp
A-Score
1-Year Total Return ->
5
Twilio
A-Score
1-Year Total Return ->
6
