Earnings projection was (.02) which came in at (.29). Non-GAAP earnings are not a legitimate metric. In addition, revenues increased Q4-14 to Q4-15 by 39.9%, but expenses increase by 57%. Sales staff was increased by 45%, but sales only increased 39.9%.
The real question is if Yelp can continue to charge $400 per 1,000 advertising impressions while Google charges $3 per 1,000 and Facebook charges 50 cents for 1,000 impression. Facebook can provide more targeted users right down to who mentioned pizza the last week, gender, age, education at cost of 1/800th of what Yelp is charging. No wonder it takes thousands of Yelp telemarketers hammering at business owners to get a sale. It is only a matter of time before advertisers realize where there is value and where there is smoke and mirrors. If Yelp had to charge what Google was charging, you could cut Yelp's revenue by 90%.
The real kicker is that Yelp sells its excess advertising inventory to Google (adchoices) who resells it to advertisers at $3 per 1,000 impressions. So if a business buys advertising from Yelp, they pay $350 a month ($4,200 yr.) but they could buy Yelp advertising directly from Google and pay only $21.60 per year for the same advertising exposure on Yelp.
Latest Comments
Yelp Q4 Earnings Release Signals Deeper Issues Ahead
Earnings projection was (.02) which came in at (.29). Non-GAAP earnings are not a legitimate metric. In addition, revenues increased Q4-14 to Q4-15 by 39.9%, but expenses increase by 57%. Sales staff was increased by 45%, but sales only increased 39.9%.
The real question is if Yelp can continue to charge $400 per 1,000 advertising impressions while Google charges $3 per 1,000 and Facebook charges 50 cents for 1,000 impression. Facebook can provide more targeted users right down to who mentioned pizza the last week, gender, age, education at cost of 1/800th of what Yelp is charging. No wonder it takes thousands of Yelp telemarketers hammering at business owners to get a sale. It is only a matter of time before advertisers realize where there is value and where there is smoke and mirrors. If Yelp had to charge what Google was charging, you could cut Yelp's revenue by 90%.
The real kicker is that Yelp sells its excess advertising inventory to Google (adchoices) who resells it to advertisers at $3 per 1,000 impressions. So if a business buys advertising from Yelp, they pay $350 a month ($4,200 yr.) but they could buy Yelp advertising directly from Google and pay only $21.60 per year for the same advertising exposure on Yelp.