Q4 2024 Yelp Inc Earnings Call Transcript
Key Points
- Yelp Inc (YELP) delivered record net revenue and strong profitability in 2024, with net revenue increasing by 6% year over year to $1.41 billion.
- The company achieved its 15th consecutive quarter of double-digit year-over-year revenue growth in services categories, with services revenue up 11% year over year to a record $879 million.
- Yelp Inc (YELP) introduced more than 80 new features and updates in 2024, including the AI chatbot Yelp Assistant, which increased project submissions by over 50% from Q3 to Q4.
- Disciplined expense management led to a 34% year-over-year increase in net income to $133 million and an 8% increase in adjusted EBITDA to $358 million.
- The company expanded its net income margin by 2 percentage points and adjusted EBITDA margin by 1 percentage point from 2023, reflecting strong financial management.
- Revenue from restaurants, retail, and other categories declined by 3% year over year to $470 million, indicating challenges in these sectors.
- Overall traffic levels were relatively flat compared to 2023, despite improvements in mobile and desktop website experiences.
- Paying advertising locations declined by 4% year over year to 521,000, driven by a decrease in RR&O locations.
- The company reduced its spend on acquiring services projects through paid search due to unsatisfactory returns, highlighting challenges in marketing efficiency.
- Yelp Inc (YELP) anticipates continued pressure on RR&O revenue in 2025, reflecting ongoing challenges in these categories.
Good day, everyone, and welcome to the Q4 2024 Yelp earnings conference call. Today's call is being recorded. (Operator Instructions)
I would now like to turn the conference over to Kate Krieger, Director of Investor Relations. Please go ahead, ma'am.
Good afternoon, everyone, and thanks for joining us on Yelp's fourth-quarter and full-year 2024 earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman; Chief Financial Officer, David Schwarzbach; and Chief Operating Officer, Jed Nachman.
We published a shareholder letter on our Investor Relations website and with the SEC and hope everyone had a chance to read it. We'll provide some brief opening comments and then turn to your questions. Now I'll read our safe harbor statement.
We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements
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