Yelp (YELP) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 reached a record $360.3 million, up 4% year-over-year, with net income of $38.4 million and Adjusted EBITDA of $101.4 million, reflecting strong profitability and disciplined expense management.

• Growth was driven by Services advertising, product enhancements, and marketing investments, while Restaurants, Retail & Other (R&O/RR&O) categories faced ongoing macro headwinds and revenue decline.

• Announced the $80 million acquisition of RepairPal, an auto services platform, expected to close by year-end.

• Nine-month net revenue grew 6% to $1.05 billion, with net income of $90.6 million and Adjusted EBITDA of $256.9 million.

Financial highlights

• Q3 2024 net revenue was $360.3 million, up 4% year-over-year; net income was $38.4 million (11% margin); Adjusted EBITDA reached $101.4 million (28% margin).

• Services advertising revenue grew 11% year-over-year to $228 million; R&O/RR&O revenue declined 6% to $116 million.

• Free cash flow for the nine months ended September 30, 2024 was $188.5 million; operating cash flow was $214.8 million.

• Cash and cash equivalents at quarter-end were $261.6 million; marketable securities totaled $135.4 million.

• Paying advertising locations declined 7% year-over-year to 524,000.

Outlook and guidance

• Full-year 2024 net revenue expected between $1.397 billion and $1.402 billion.

• Adjusted EBITDA guidance raised to $341–$346 million.

• Q4 2024 net revenue expected to decrease sequentially due to seasonality and ongoing RR&O headwinds.

• Any 2024 revenue or expense from the RepairPal acquisition expected to be immaterial.

• Paid search spend for 2024 expected to be $30 million, with future spend at more modest levels.