Yelp (YELP) AI Stock Analysis

• Market Cap: $1.96B
• Dividend Yield: N/A
• Average Volume (3M): 797.20K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.57
• Revenue Growth: 5.37%
• EPS Growth: 13.08%
• Country: US
• Employees: 5,116
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 0.67
• Shares Outstanding: 63,060,654
• 10 Day Avg. Volume: 1,122,159
• 30 Day Avg. Volume: 797,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: $35.83
• Price Target Upside: 11.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $34.00 ▲(6.22% Upside)

Yelp's strong financial performance and strategic focus on AI and data licensing are significant strengths. However, bearish technical indicators and challenges in certain revenue segments, along with macroeconomic uncertainties, temper the overall outlook.

Positive Factors

Financial Performance

Q2 total revenues beat expectations and guidance, driven by strong growth in Services and contribution from the RepairPal acquisition.

Operational Efficiency

Q2 Adjusted EBITDA was above expectations due to strong revenue performance and continued operating expense discipline.

Negative Factors

Competitive Dynamics

Growing AI-generated search results on Google are impacting Yelp's visibility, potentially reducing its ability to attract new users.

Growth Outlook

The outlook for 3Q revenue and EBITDA was below expectations, indicating potential challenges for the company.

User Engagement

Yelp is experiencing a decline in user engagement, posing risks to its traffic and monetization model.

Yelp Business Overview & Revenue Model

Company Description

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location Ad products, as well as enables businesses to deliver targeted search advertising to local audiences; and business listing page products. The company also offers other services comprising Yelp Reservations that provide online reservations for restaurants, nightlife, and other venues directly from their Yelp business pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website, as well as non-advertising partner arrangements. It has strategic partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. Yelp Inc. was incorporated in 2004 and is headquartered in San Francisco, California.

How the Company Makes Money

Yelp generates revenue primarily through advertising services sold to local businesses, which can create enhanced business profiles, promote their listings, and access additional marketing tools. Key revenue streams include cost-per-click (CPC) advertising, where businesses pay Yelp each time a user clicks on their ad, and premium services like Yelp Ads, which allow businesses to appear prominently in search results. Additionally, Yelp offers a subscription service called Yelp Waitlist, which helps restaurants manage reservations and customer flow. Significant partnerships with third-party services, such as delivery platforms and payment processors, also contribute to Yelp's earnings by enhancing the value of its offerings to both consumers and businesses.

Yelp Financial Statement Overview

Summary

Yelp demonstrates strong financial health with robust revenue and profit growth, efficient operations, and solid cash flow generation. Despite a decrease in cash reserves, the company maintains a conservative leverage profile and a strong equity position, ensuring stability.

Income Statement

Yelp shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 9.47% from 2023 to 2024. The gross profit margin remains high at 90.25%, indicating effective cost management. Net profit margin improved to 9.95% TTM, demonstrating enhanced profitability. EBIT and EBITDA margins are also solid at 11.81% and 15.98% respectively, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.05, indicating conservative leverage use. Return on Equity (ROE) is satisfactory at 19.65%, showing good returns on shareholder investments. The equity ratio is robust at 73.90%, highlighting financial stability and strong equity base. However, cash reserves have decreased, warranting careful cash flow management.

Cash Flow

Yelp exhibits a robust free cash flow growth rate of 8.69% TTM, demonstrating effective cash management. The operating cash flow to net income ratio is strong at 2.17, indicating efficient conversion of income to cash. The free cash flow to net income ratio stands at 1.89, highlighting ample cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.41B	1.34B	1.19B	1.03B	872.93M
Gross Profit	1.32B	1.29B	1.22B	1.09B	953.74M	815.75M
EBITDA	257.41M	206.55M	149.31M	163.27M	143.46M	-11.42M
Net Income	149.14M	132.85M	99.17M	36.35M	39.67M	-19.42M
Balance Sheet
Total Assets	980.17M	983.57M	1.01B	1.02B	1.05B	1.15B
Cash, Cash Equivalents and Short-Term Investments	301.12M	327.91M	446.40M	410.62M	489.78M	606.80M
Total Debt	30.58M	43.15M	87.30M	126.33M	168.22M	200.10M
Total Liabilities	233.77M	239.60M	265.19M	305.60M	299.21M	300.41M
Stockholders Equity	746.40M	743.97M	749.53M	710.32M	751.32M	854.53M
Cash Flow
Free Cash Flow	284.97M	248.47M	279.43M	160.33M	184.37M	138.57M
Operating Cash Flow	329.30M	285.81M	306.28M	192.31M	212.66M	176.70M
Investing Cash Flow	-80.84M	-77.27M	-54.68M	-126.14M	-27.65M	248.36M
Financing Cash Flow	-304.97M	-303.80M	-246.78M	-237.53M	-300.49M	-21.05M

Yelp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Negative. The current price of 32.01 is below the 20-day moving average (MA) of 33.82, below the 50-day MA of 34.68, and below the 200-day MA of 36.54, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YELP.

Yelp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	73 Outperform	$1.47B	22.30	9.18%	4.74%	26.71%	-23.67%
TBLA	72 Outperform	$958.40M	88.01	1.40%	―	12.01%	―
YELP	70 Outperform	$1.96B	14.48	20.13%	―	5.37%	13.08%
ANGI	66 Neutral	$779.98M	14.68	5.86%	―	-15.79%	―
Sector *	60 Neutral	$43.99B	4.24	-10.43%	4.00%	2.31%	-34.39%
IAC	51 Neutral	$2.72B	―	-8.49%	―	-23.79%	-138.59%
NXDR	49 Neutral	$703.94M	―	-14.27%	―	9.65%	56.50%

Yelp Corporate Events

Yelp Holds 2025 Annual Stockholders Meeting

On June 13, 2025, Yelp Inc. held its 2025 Annual Meeting of Stockholders via a live audio webcast, where stockholders voted on four proposals. All eight director nominees were elected, Deloitte & Touche LLP was ratified as the independent auditor, executive compensation was approved, and it was decided that advisory votes on executive compensation would occur annually.

The most recent analyst rating on (YELP) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Yelp stock, see the YELP Stock Forecast page.