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September 01, 2020 1:32pm
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Earnings To Watch: Yelp (YELP) Reports Q3 Results Tomorrow

YELP Cover Image

Local business platform Yelp (NYSE:YELP) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Yelp beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $357 million, up 5.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Yelp a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Yelp’s revenue to grow 4.4% year on year to $360.3 million, slowing from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.

Yelp Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yelp has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.

Looking at Yelp’s peers in the social networking segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 67.9%, beating analysts’ expectations by 10.6%, and Snap reported revenues up 15.5%, topping estimates by 1.1%. Reddit traded up 41.9% following the results while Snap was also up 15.6%.

Read our full analysis of Reddit’s results here and Snap’s results here.

There has been positive sentiment among investors in the social networking segment, with share prices up 8.6% on average over the last month. Yelp is up 1.6% during the same time and is heading into earnings with an average analyst price target of $37.88 (compared to the current share price of $34.83).

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