Yelp (YELP) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic transformation and AI integration

• Shifted from a sales-driven to a product-driven growth model, accelerating self-serve and upmarket strategies, with a strong focus on AI transformation since 2021.

• Reconceptualizing the user experience with AI, making it more conversational and integrating partnerships with Apple, Amazon, and OpenAI to expand reach.

• Licensing partnerships, especially with OpenAI, have driven significant growth in other revenue, which increased 17% in 2025 and 33% in Q4.

• Emphasizes the authority and trust of human-generated content, with 330 million reviews and rigorous moderation to ensure quality.

• Services now account for about 70% of revenue, reflecting a strategic shift from the traditional restaurant review focus.

Market dynamics and advertiser trends

• Local physical economy has faced pressure from rising input and labor costs, with margin compression as consumers resist further price increases.

• Services growth slowed significantly in 2025 due to economic uncertainty and tariffs, with these dynamics persisting into 2026.

• Both enterprise and SME advertisers have adjusted their spending patterns, with SMEs reacting more quickly to economic headlines in 2025.

• Increased investment in tooling and paid search to better serve mid-market and enterprise clients, focusing on connecting leads to paying customers.

Partnerships and product innovation

• DoorDash partnership has replaced Grubhub, operating on a pay-per-lead model and supporting the shift to food delivery, though restaurant revenue is now only 10% of total.

• Acquisition of Hatch, an AI lead management solution, enhances advertiser value by improving lead conversion and integrating with multiple platforms.

• Over 50 new AI-powered products and features launched in 2025, with Request a Quote requests up 400% year-over-year and nearly 100% monetized.

• Voice AI and conversational interfaces are being expanded across categories, with a focus on maintaining brand voice and trust.