[ad_1]
What happened
Actions of yap (NYSE: YELP) were slammed Friday. Shares lost up to 32.6%. But the stock was down 28.6% at 12:30. IS.
The decline in securities was a result of the Company's third quarter results, which included lower third quarter and fourth quarter sales guidance than consensus estimates.
Source of the image: Getty Images.
So what
The business review platform recorded revenue of $ 241 million. This amount was up from $ 223 million in the same quarter last year, but was lower than management's expectations and analysts' consensus forecasts. Analysts expected on average a turnover of 245 million dollars.
"While the transition to fixed-term advertising has opened our sales funnel, it has also made our results more sensitive to short-term business problems," said Yelp CEO Jeremy Stoppelman in his report. third quarter results.
Now what
Stoppelman said that Yelp had already begun to address issues that were affecting the disappointing growth of its revenue, but added that it would take more than a quarter of the time for these changes to be reflected in results of the company. To this end, Yelp has reduced its full-year sales forecast by $ 20 million (based on the mid-point of its forecast range) and has published lower-than-expected revenue forecasts for the fourth quarter. quarter. Management expects sales of $ 239 to $ 243 million in the fourth quarter. Analysts on average expected a turnover of $ 260 million for the period.
After the fourth quarter, management believes that its move to "more flexible and dynamic advertising terms" will increase significantly[s] our long-term sales opportunity and opens new levers to expand the reach of Yelp's sales and profit margins, "said Stoppelman.
[ad_2]
Source link
