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OffbeatYelp's shares take a beating after revenue miss

01:05  09 november  2018
01:05  09 november  2018 Source:   msn.com

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San Francisco-based Yelp ’ s shares plunged 18.4 percent to close Wednesday at .33 after the company reported a first-quarter loss of 6 cents a share , on 7.3 million in revenue . Analysts surveyed by Thomson Reuters had forecast Yelp to lose 8 cents a share on sales of 8.3 million.

CNBC' s Aditi Roy reports on Yelp earnings with Chris Johnson, Johnson Research Group. Wall Street futures point to a slight rebound after the Dow sheds 300 points.

SAN FRANCISCO — Shares of Yelp Inc. took a beating Thursday after the online-reviews site reported soft third-quarter sales and indicated the current period would also be weak.

Yelp's stock was down $12.50, or 29 percent, to $31 in after-hours trading.

CEO Jeremy Stoppleman blamed the revenue miss on the company's new non-term advertising, intended to encourage advertisers to try the site without being tied to longer-term contracts.

"While the shift to non-term advertising has opened our sales funnel, it has also made our results more sensitive to short-term operational issues," Stoppleman said in a new release. He said the company said expected revenue would also take a hit in the fourth quarter.

The San Francisco-based company reported revenue of $241.1 million in third quarter, up from $223 million during the same period a year ago. That was below Wall Street expectations of $245.4 million, according to Zacks Investment Research.

Yelp posted profits of $15 million, or 17 cents a share. Earnings, adjusted for stock option expense, came to 43 cents per share. That was above the 35 cents per share expected by analysts.

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