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Mar 31
Yelp Q1 2025 Earnings Report
Product Innovation and Services Growth Drove Yelp’s First Quarter 2025 Results
Key Takeaways
Yelp exceeded its first quarter expectations, reporting an 8% year-over-year increase in Net Revenue to $359 million. Net Income rose significantly by 72% to $24 million, while Adjusted EBITDA grew 32% to $85 million, reflecting a strong 24% margin.
Net Revenue increased by 8% year over year to $359 million.
Net Income increased by 72% year over year to $24 million, reflecting a 7% margin.
Adjusted EBITDA grew 32% year over year to $85 million, reflecting a 24% margin.
Services revenue increased by 14% year over year, marking the 16th consecutive quarter of double-digit growth.
Yelp
Yelp
Forward Guidance
Yelp updated its full-year 2025 outlook, projecting Net Revenue between $1.465 billion and $1.485 billion and Adjusted EBITDA between $345 million and $365 million.
Positive Outlook
- Exceeded first quarter expectations for revenue and profitability.
- Achieved strong profitability with significant growth in Adjusted EBITDA and margin.
- Services revenue continued its double-digit growth trend for the 16th consecutive quarter.
- Successfully rolled out 15 new features and updates to enhance user experience and business operations.
- Excitement about upcoming AI advancements planned to transform the Yelp experience and streamline business operations.
Challenges Ahead
- Macroeconomic uncertainty, including factors like inflation and interest rates, could impact consumer and advertiser behavior.
- Potential challenges in maintaining and expanding the advertiser base, particularly if advertiser turnover increases or consumer demand weakens.
- Need to successfully drive continued growth through strategic initiatives.
- Operating effectively with a primarily remote workforce and attracting/retaining key talent remains a factor.
- Operating within an evolving industry with a limited operating history and reliance on user-generated content.