Yelp (YELP) Q4 2024 earnings summary

Executive summary

• Net revenue reached a record $1.41 billion in 2024, up 6% year-over-year, driven by strong growth in services advertising revenue and disciplined expense management.

• Net income grew 34% year-over-year to $133 million, with a 9% net income margin; Adjusted EBITDA rose 8% to $358 million, representing a 25% margin.

• Services segment was the primary growth driver, with advertising revenue up 11% to $879 million, while Restaurants, Retail & Other (RR&O) declined 3%.

• Over 80 new features and AI-powered innovations, such as Yelp Assistant and Smart Selection, were introduced to enhance user and advertiser experience.

• Over $1.6 billion returned to shareholders through share repurchases as of December 31, 2024.

Financial highlights

• Q4 2024 net revenue increased 6% year-over-year to $362 million, exceeding guidance midpoint by $13 million.

• Adjusted EBITDA for 2024 was $358 million (25% margin), with net income of $133 million (9% margin).

• Free cash flow in 2024 was $249 million (18% margin); cash and equivalents at year-end were $318 million.

• Diluted EPS increased 40% year-over-year to $1.88, with shares outstanding reduced to 75 million.

• Advertising revenue remained diversified, with services accounting for 65% of ad revenue.

Outlook and guidance

• 2025 net revenue expected between $1.470 billion and $1.485 billion; Q1 guidance $350–$355 million, reflecting seasonality.

• 2025 Adjusted EBITDA projected at $345–$360 million; margin expected at 23–24%.

• Stock-based compensation as a percentage of revenue targeted to fall below 8% by Q4 2025.

• Services expected to remain the main growth driver; RR&O to stay pressured.