Yelp Shares Jump After Company Reports Surprise Profit

Shares of Yelp jumped 10% in premarket trade Wednesday after beating third-quarter expectations with a surprise profit. The company reported net income of $2.1 million, or 2 cents per share, compared to a net loss of $8.1 million, or a loss of 11 cents per share in the year-earlier period. It reported adjusted earnings per share of 22 cents, compared to the FactSet consensus of a loss of 3 cents. It reported revenue of $186 million, up from $143 million in the year-earlier period and above the FactSet consensus of $183 million. For the fourth quarter the company expects net revenue of $191 million to $195 million and for the full year it expects net revenue of $709 million to $713 million. It expects a restructuring charge of $2 million to $4 million in the fourth quarter after winding down sales and marketing outside the U.S. and Canada, resulting in the laying off of up to 175 employees. Shares of Yelp have gained 3% in the past three months, compared to the S&P 500's loss of 2%.