$YELP JUST GOT RAPED POST EARNINGS REPORT

This is the worst earnings report Yelp had ever produced. Perhaps their extortion racket is getting old and lame?

I never dine out without first consulting with my Yelp app. Nonetheless, the company seems to have an issue now. For them to warn like this means the train fell off the tracks. This is not a buy.

Don’t buy businesses in decline. Their stock prices do this during earnings season.

Yelp beats by $0.03, reports revs in-line; guides Q2 revs below consensus; lowers FY17 revs below consensus

Reports Q1 (Mar) earnings of $0.19 per share, $0.03 better than the Capital IQ Consensus of $0.16; revenues rose 24.4% year/year to $197.32 mln vs the $198.51 mln Capital IQ Consensus.

Advertising revenue totaled $177.0 million, representing 24% growth compared to the first quarter of 2016.

Co issues downside guidance for Q2, sees Q2 revs of $202-206 mln vs. $215.29 mln Capital IQ Consensus Estimate.

Co issues downside guidance for FY17, sees FY17 revs of $850-865 mln (from $880-900 mln) vs. $889.45 mln Capital IQ Consensus Estimate.

“We had strong financial performance this quarter doubling adjusted EBITDA compared to a year ago,” said Lanny Baker, Yelp’s chief financial officer. “While we are lowering our revenue and adjusted EBITDA outlook for the year, sales productivity has rebounded, transactions revenue has accelerated and we’ve seen promising results from our newly expanded retention efforts, giving us confidence in our ability to grow and scale in 2017 and beyond.”