Yelp (YELP) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: N/A
• Average Volume (3M): 813.21K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.58
• Revenue Growth: 5.93%
• EPS Growth: 29.17%
• Country: US
• Employees: 5,116
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 0.36
• Shares Outstanding: 63,842,426
• 10 Day Avg. Volume: 682,184
• 30 Day Avg. Volume: 813,214
• PEG Ratio: 1.95
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.16
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: $38.25
• Price Target Upside: 8.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $39.00 ▲(10.61%Upside)

Yelp scores well due to strong financial performance and promising earnings call insights, particularly in service growth and AI innovation. However, neutral technical indicators and macroeconomic uncertainties weigh on the overall score.

Positive Factors

Financial Performance

Yelp produced a solid set of results with healthy growth from Services despite facing tough comparisons.

Strategy and Innovation

The company remains focused on executing its product-led growth strategy with significant consumer-facing updates and innovation around AI.

Negative Factors

Competitive Environment

Declining user engagement and growing competition in the RR&O segment creates a tough operating environment.

Revenue Outlook

Management gave a cautious revenue outlook for the remainder of the year due to macro headwinds.

User Engagement

Ad clicks declined 3% year over year, indicating challenges in maintaining user interaction.

Yelp Business Overview & Revenue Model

Company Description

Yelp Inc. is a prominent online platform headquartered in San Francisco, California, facilitating local business discovery and review. Founded in 2004, the company operates in the internet content and information sector, offering users the ability to access and share reviews, ratings, and other information about local businesses across various categories, including dining, shopping, entertainment, and services. Yelp's platform is accessible via its website and mobile applications, making it a widely-used resource for consumer insights and business information.

How the Company Makes Money

Yelp generates revenue primarily through advertising and related services. The company's core revenue stream is derived from local advertising, where businesses pay Yelp to enhance their visibility on the platform. This includes features like sponsored listings, enhanced profiles, and targeted advertisements that appear in search results and on business pages. Additionally, Yelp offers performance-based advertising, where businesses are charged based on user interactions with their ads. Another significant revenue stream for Yelp is its subscription services for businesses, which provide tools and insights for managing online presence and customer engagement. Yelp also partners with third-party providers, such as Grubhub, to offer transaction-based services, further contributing to its revenue.

Yelp Financial Statement Overview

Summary

Yelp's financial performance is solid with strong revenue growth, high gross profit margins, and improved net profit margin. The company maintains a low debt-to-equity ratio and generates robust free cash flow, although cash reserves have decreased.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.34B	1.19B	1.03B	872.93M
Gross Profit	1.29B	1.22B	1.09B	953.74M	815.75M
EBITDA	206.55M	149.31M	111.63M	143.46M	15.68M
Net Income	132.85M	99.17M	36.35M	39.67M	-19.42M
Balance Sheet
Total Assets	983.57M	1.01B	1.02B	1.05B	1.15B
Cash, Cash Equivalents and Short-Term Investments	327.91M	446.40M	400.62M	479.78M	595.88M
Total Debt	43.15M	87.30M	126.33M	168.22M	200.10M
Total Liabilities	239.60M	265.19M	305.60M	299.21M	300.41M
Stockholders Equity	743.97M	749.53M	710.32M	751.32M	854.53M
Cash Flow
Free Cash Flow	248.47M	279.43M	160.33M	184.37M	138.57M
Operating Cash Flow	285.81M	306.28M	192.31M	212.66M	176.70M
Investing Cash Flow	-77.27M	-54.68M	-126.14M	-27.65M	248.36M
Financing Cash Flow	-303.80M	-246.78M	-237.53M	-300.49M	-21.05M

Yelp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Neutral. The current price of 35.26 is above the 20-day moving average (MA) of 34.64, below the 50-day MA of 36.29, and below the 200-day MA of 36.59, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 82.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YELP.

Yelp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	75 Outperform	$1.57B	23.73	9.18%	4.42%	26.71%	-23.67%
YELP	71 Outperform	$2.25B	16.96	19.74%	―	5.93%	29.17%
ANGI	69 Neutral	$822.98M	16.44	5.05%	―	-16.79%	―
TBLA	69 Neutral	$1.12B	90.29	1.35%	―	16.62%	―
IAC	68 Neutral	$3.28B	―	-15.07%	―	-18.11%	-516.37%
Sector *	58 Neutral	kr14.50B	4.87	19.17%	3.62%	-8.59%	7.48%
NXDR	54 Neutral	$746.05M	―		―	12.01%	35.71%

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.