Yelp Q4 Metrics: 65% of Search Mobile, 75% SMB Advertiser Retention Rate

Yesterday Yelp announced its Q4 and full year results for 2014. The headline was: Yelp achieves profitability. On the earnings call CFO Rob Krolik said that Yelp would be able to achieve and maintain long-term EBITDA margins of between 35 and 40 percent.

Total revenue for the quarter was roughly $110 million and $377.5 million for the year. The company slightly beat Wall Street estimates. However slowing growth caused a number of financial analysts to downgrade the stock.

Yelp Q4 2014

There were a number of interesting data points that received only passing mention or were not discussed during the earnings call. Among them were the following:

Traffic/search: 

  • Desktop visitors: 78 million approx.
  • Mobile visitors: 72 million approx.
  • International: 30 million approx.
  • Mobile search volume: 65%

Revenue distribution:

  • Total Revenue: $109.9 million
  • Local Revenue: $93.1 million
  • Brand Revenue: $8.6 million
  • Other: $8.1 million
  • International: $3.3 million

Revenues by category: 

  • Home & Local: 26%
  • Restaurants: 15%
  • Beauty & Fitness: 13%
  • Shopping: 11%
  • Health: 11%
  • Other: 24%

Local business metrics: 

  • Claimed business locations: 2 million (approx.)
  • Active local business accounts: 93.7 thousand
  • Local advertising accounts: 84 thousand
  • Mobile ad impressions: 56% (of total)
  • Repeat rate (defined as % of existing customers from which Yelp recognizes revenue in the immediately preceding 12-month period): 75%

The data above suggest a fairly low churn rate for Yelp, which is somewhat surprising given some of the criticism of Yelp ad rates and vocal anti-Yelp sentiment among some SMBs.

Other interesting information from the call included:

  • Roughly 32% of local advertisers on the site are buying “packaged CPC.”
  • Average advertiser spending is between $300 to $500 per month.
  • Yelp Platform program drove “approximately 350,000 transactions” in Q4. The company also reported that “more than 60,000 businesses [are] integrated into Yelp Platform through 12 partners.”

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