Local business platform Yelp (NYSE:YELP) will be announcing earnings results tomorrow after the bell. Here's what you need to know.
Yelp met analysts' revenue expectations last quarter, reporting revenues of $332.8 million, up 6.5% year on year. It was a weak quarter for the company, with slow revenue growth.
Is Yelp a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Yelp's revenue to grow 4.7% year on year to $353 million, slowing from the 12.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yelp has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.
Looking at Yelp's peers in the social networking segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 22.1%, beating analysts' expectations by 2%, and Pinterest reported revenues up 20.6%, in line with consensus estimates. Meta traded up 5% following the results while Pinterest was down 14.5%.
Read our full analysis of Meta's results here and Pinterest's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the social networking stocks have fared somewhat better, they have not been spared, with share prices down 7.9% on average over the last month. Yelp is down 6.4% during the same time and is heading into earnings with an average analyst price target of $41.6 (compared to the current share price of $33.6).
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