Yelp Shares Crater 25% In After-hours Trade After Revenue Miss, Lowered Outlook

By Ciara Linnane Markets MarketWatch Pulse

Shares of online review site Yelp Inc. tumbled 25% in after-hours trade Tuesday, after the company missed first-quarter revenue estimates and lowered its outlook for the year. San Francisco-based Yelp said it had a net loss of $4.8 million, or 4 cents a share, in the quarter, after a loss of $15.5 million, or 20 cents a share, in the year-earlier period. Adjusted per-share earnings came to 19 cents, ahead of the FactSet consensus of 16 cents. Revenue rose 24% to $197.3 million, below the FactSet consensus of $198 million. The company said it is lowering its outlook for the year and now expects revenue of $850 million to $865 million, compared with a FactSet consensus of $888.7 million. "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," Chief Financial Officer Lanny Baker said in a statement. Shares have fallen 9% in 2017, while the S&P 500 has gained 7%.

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