Yelp Shares Explode on Stellar Fourth Quarter Financial Results

Yelp shares were flying on Wednesday after the company reported fourth quarter financial results that topped estimates. The company also announced that it has added three new members to its board.

Shares were soaring nearly 5% in after-hours trading as Wall Street learned the results.

For the quarter, Yelp reported revenue of $243.7 million. This is compared to the $241.2 million expected by analysts. Adjusted earnings before interest, taxes, depreciation and amortization were $52.9 million. The company had projected revenue growth of 8 percent to 10 percent in 2019.

It was in January that one of the company’s largest shareholders, SQN Investors LP, had said it was ready to launch a proxy fight against the company if it didn’t follow recommendations to improve performance or consider selling itself.

SQN had suggested adding three new members and boosting margins by 30 percent. Yelp said in its results that it’s aiming for a 30 percent to 35 percent adjusted EBITDA margin by 2023.

The company also said that it is increasing its share buyback by $250 million. According to the company, it will achieve stronger revenue half in the later half of 2019 and “mid-teens revenue growth on an compound annual growth basis from 2019 to 2023.”

Earlier this month Goldman Sachs issued “Buy” rating on the stock.

Disclaimer: We have no position in Yelp Inc. (NYSE: YELP) and have not been compensated for this article.