Yelp shares soar 24% as online review site beats profit expectations
Yelp shares are up 24 percent Thursday, a day after it posted second-quarter earnings-per-share of 12 cents versus the 1 cent Thomson Reuters consensus. It also reported sales of $235 million for the quarter versus Street expectations of $232 million.
The company said in its shareholder letter its revenue exceeded their outlook due to "strength across Yelp's advertising business."
Yelp YELP shares jumped after the online review website reported a better-than-expected profit.
The company's shares are up 24 percent Thursday, a day after it posted second-quarter earnings-per-share of 12 cents versus the 1 cent Thomson Reuters consensus.
Yelp also reported sales of $235 million for the quarter versus Street expectations of $232 million. The company said in its shareholder letter its revenue exceeded their outlook due to "strength across Yelp's advertising business."
The company's second-quarter ad revenue rose 21 percent to $226 million.
J.P. Morgan analyst Doug Anmuth reiterated his overweight rating for Yelp shares, citing the company's strong earnings results.
"Strong 2Q … Home & local services ad revenue accelerated for the 3rd straight qtr as Request-A-Quote (RAQ) adoption & monetization remains strong," Anmuth said in the note to clients Thursday. "Yelp remains one of our top SMID-cap ideas as we believe the company has a significant opportunity ahead in the large & growing local ad market."
Yelp said the number of active devices using its app rose 15 percent year over year to more than 32 million.
The company's shares are down 9 percent this year through Wednesday versus the S&P 500's 7 percent gain.
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