Yelp, one of the more evocative proper nouns in local search, has released Q1 2023 earnings showing a sixth consecutive quarter with record-setting net revenue.
Here are some of the most relevant Q1 figures. At least in our estimation.
The company recorded Q1 net revenue of $312 million. This is up 13% over Q1 2022 and again represents a sixth consecutive record quarter in terms of net revenue.
Yelp also grew EBITDA by 12% vs Q1 2022, to $54 million. The company grew its net loss by 29% from $915,000 to $1.18 million.
Yelp also showed modest gains in the number of business locations that are paying for Yelp ads. If only by 1%, from 546,000 to 554,000.
The company showed a modest 1% bump in ad clicks and a 14% increase in the average cost per click.
Also during Q1, Yelp repurchased approximately 1.7 million of its shares at an aggregate cost of $50 million.
Demand Holding Up
These figures show that while local demand for ads may not be skyrocketing, it appears to be holding its own.
Yelp CEO Jeremy Stoppelman made a similar point in his Q1 Investor Letter.
“Our performance-based ad products and high-intent audience continued to generate robust advertiser demand, resulting in the sixth consecutive quarter of record net revenue,” Stoppelman wrote. “Yelp’s broad set of categories and quality advertisers have positioned us well in a volatile macro environment while our product-led strategy has enabled us to connect consumers and businesses in more ways than ever before.”
Yelp has recently demonstrated a strong emphasis on launching new products or significant updates to existing products.
As Stoppleman notes in his letter, “Our teams have launched more than a dozen new product updates and features in 2023 that we expect will contribute to continued business momentum. We are pleased with this early progress on our roadmap for the year and excited by the opportunities ahead to drive long-term, profitable growth.”
In late April, Yelp announced more than a dozen new product features. One such rollout was Yelp Guaranteed, a new satisfaction guarantee designed to increase buyer confidence when hiring eligible Yelp advertisers through Request-a-Quote.
Yelp Guaranteed is currently available in certain of its Home Services subcategories in five leading metro areas. Yelp plans to roll it out nationwide this summer.
This Week in Local Podcast Share L23 Voices from Yelp, PG Forsta, & Roam
A quick editor’s note. Episode 19 of Localogy’s This Week in Local podcast features an audio segment from the recent L23 conference in which Yelp’s Chard Richard talks about Yelp’s success in using “rep=assisted self-serve” in order to reduce its local sales costs and improve retention.
