Yelp Shares Explode After Better Than Expected Second Quarter Profits

Shares of review site Yelp saw its shares jump on Thursday after reporting better than expected results in its second quarter financial report on Wednesday.

The stock closed up 27% after reporting earnings of 12 cents a share versus the one penny that analysts had expected. Sales of $235 million were also ahead of the $232 million that analysts had been expecting.

Yelp cited that its revenue had exceeded its own outlook due to “strength across Yelp’s advertising business.” Ad venue during the second quarter had seen a 21% jump to $226 million.

Yelp also said that active devices using the app had seen a growth of 15% yoy to over 32 million.

After the earnings, analyst Doug Anmuth of J.P. Morgan reiterated an “overweight” rating on the stock and said, “Strong 2Q … Home & local services ad revenue accelerated for the 3rd straight qtr as Request-A-Quote (RAQ) adoption & monetization remains strong.”

He added, “Yelp remains one of our top SMID-cap ideas as we believe the company has a significant opportunity ahead in the large & growing local ad market.”

Yelp said the number of active devices using its app rose 15 percent year over year to more than 32 million.

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