Yelp (YELP) Goldman Sachs Communacopia + Technology Conference 2024 summary

Strategic transformation and business evolution

• Shifted from a sales-driven, people-heavy model to a leaner, product and engineering-focused approach since 2018, accelerating during the pandemic.

• Regrew revenue post-pandemic with a focus on innovation, particularly in AI and ad tech, driving more efficient advertiser engagement.

• Emphasized balanced value delivery for both business owners and consumers, especially in the services segment.

• Services segment has shown strong growth, with 11% overall and 15% in home services last quarter.

• Investments are prioritized in services and AI-driven products, with continued updates to consumer and advertiser experiences.

Competitive landscape and regulatory environment

• Noted increased competition in local services, with innovation and consumer experience driving market share gains.

• DOJ's antitrust win against Google seen as a watershed moment, opening opportunities for innovation and new entrants in search.

• Ongoing litigation against Google aims to address monopolistic practices and foster a more competitive ecosystem.

• Regulatory changes are expected to create significant shifts in the digital advertising and search landscape over the next 3–5 years.

AI, product innovation, and data opportunities

• Launched and iterated on Yelp Assistant, leveraging LLMs to improve user experience and project matching.

• Plans to expand AI capabilities, including potential API offerings for integration with other platforms and voice assistants.

• Data licensing is a growing business, with opportunities at multiple value stack levels, including AI-powered APIs.

• Unique data assets position the company as a key partner for new search and voice platforms seeking accurate local information.