Yelp (YELP) Q4 2023 earnings summary

Executive summary

• FY23 net revenue reached $1,337.1M, up 12% YoY; net income was $99.2M and Adjusted EBITDA was $330.5M, with a 24.7% margin.

• Product-led investments delivered nearly 60 features and updates; 2024 growth initiatives focus on Services.

Financial highlights

• Q4 revenue was $342.4M vs. $309.1M YoY; operating income was $25.0M vs. $33.4M, and net income was $27.4M vs. $20.1M.

• FY23 operating income was $79.0M vs. $58.4M; diluted EPS was $1.35 vs. $0.50 in 2022.

• FY23 advertising revenue grew 13% to a record $1.28B; 544,000 locations paid for advertising at year-end.

Outlook and guidance

• FY24 revenue guidance is $1.42B–$1.44B, representing 6%–8% growth; Adjusted EBITDA guidance is $315M–$335M, with a 22%–23% margin.

• Adjusted EBITDA outlook is not reconciled to GAAP net income because other income and income taxes are uncertain and not reasonably predictable.

• Year-end headcount is planned to remain at the YE23 level to drive operating leverage.