Overview

* Yelp Q2 net revenue rises 4% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 grows 10% and beats analyst estimates, per LSEG data

* Co says growth moderated amid an uncertain macroeconomic environment

* Company narrows 2025 net revenue outlook

Outlook

* Yelp narrows 2025 net revenue outlook to $1.465 bln-$1.475 bln

* Company narrows 2025 adjusted EBITDA outlook to $350 mln-$360 mln

Result Drivers

* AI INITIATIVES - Yelp attributes Q2 performance to AI initiatives such as Yelp Assistant and Yelp Host

* PRODUCT STRATEGY - Co cites solid execution of product-led strategy as a driver for Q2 results

* MACROECONOMIC CHALLENGES - Overall growth moderated amid uncertain macroeconomic environment, per CFO David Schwarzbach

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $370.39 $366.80

Revenue mln mln (10

Analysts

)

Q2 Net $44.09

Income mln

Q2 Beat $100 mln $88.80

Adjusted mln (9

EBITDA Analysts

)

Q2 $53.29

Operatin mln

g Income

Q2 $58.98

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the online services peer group is "buy."

* Wall Street's median 12-month price target for Yelp Inc ( YELP ) is $39.00, about 12.4% above its August 6 closing price of $34.15

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)