Yelp Inc (NYSE:YELP): Reports 3Q13 Results And Plans For Secondary Offering

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Dallas, Texas 10/30/2013 (Financialstrend) – Information service provider, Yelp Inc (NYSE:YELP) offers an online urban city guide through its website Yelp.com to the residents in the U.S., Canada, Ireland, Spain, the United Kingdom, France and Germany among others. It offers information relating to entertainment, restaurants, shopping, eateries, public and government services, hotels, health, education and home services besides others. The stock of the company gained $1.24 during Tuesday’s trade and closed the session at $68.83, which shows over 250% gains year-to-date. Last week, the stock hit an all-time high of $75.37.

On October 29, 2013 the company reported its 3Q13 results with 68% increase in revenues to $61.2 million which was largely offset by 60% increase in sales and marketing costs to $34.1 million. As a result the net loss widened to $2.3 million or $0.04 per share during 3Q13 compared to net loss of $2 million reported during 3Q12. The increase in net loss is also partly attributed to higher taxes. Yelp spared $510,000 during 3Q13 to cover taxes, compared just about $45,000 during the same quarter, last year.

The company reported an increase in mobile usage with 62% of total searches on company’s website resulting from mobile devices during 3Q13. By adding the ability to post reviews from mobile devices, Yelp witnessed the spurge in mobile app usage which increased to 11.2 million devices. The company reportedly sold over 46% of its ads on smartphone and tablets.

The company also mentioned its intention to raise $250 million in a follow-up to its IPO last year by selling about 3.7 million shares of the company’s common stock. This offering envisions the company fetching $67-$68 for its Class A shares. The company could also raise an additional $37.5 million, provided its investment bankers exercise an option to buy about 0.55 million more shares.

The company is anticipating revenue of $66 to $67 million during 4Q13 while analysts’ had expected revenue of $65 million.

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