Yelp's misses revenues for Q3 as brand advertising falls short
Skift Take
Yelp needs to fix its sales team issues soon. And even though mobile usage growth is encouraging, monetization there will be a challenge going ahead.
Yelp Inc., a website that lets users review businesses ranging from lounges to locksmiths, fell the most in five months after the company forecast revenue that missed estimates amid slumping ad sales to national retailers.
Fourth-quarter revenue will be $40 million to $40.5 million, San Francisco-based Yelp said yesterday in a statement. That’s less than the analysts’s average estimate of $40.8 million, according to data compiled by Bloomberg.
CFO Robert Krolik said on a conference call yesterday that revenue from display ads, primarly purchased by national brands, would be “flat-to-down” in the current period due to “execution challenges in that part of the business.” Brian Fitzgerald, an analyst at Jefferies & Co., cut his price estimate on Yelp, citing the
