Yelp shares rise as quarterly loss narrows
The stock jumps more than 3% in after-hours trading, propelled by signs of more Web traffic and a brighter revenue forecast.
Yelp also boosted its 2014 revenue forecast, now seeing a range of $363 million to $367 million, compared with the February view of $353 million to $358 million. Analysts appeared to anticipate the increase, as they most recently expected revenue growth slightly above Yelp's range.
For the second quarter, Yelp projected revenue would range between $85 million to $86 million. Analysts surveyed by Thomson Reuters expected $85 million.
Yelp, which provides local business advertising and reviews, has sought to expand its international reach, including a website launch in Japan earlier this month. The company also recently struck a deal to provide business listings for Internet searches on Yahoo (YHOO).
For the latest period, Yelp reported a loss of $2.6 million, or four cents a share, compared with a prior-year loss of $4.8 million, or eight cents a share. Analysts had expected a loss of six cents.
Net revenue jumped 66 percent to $76.4 million, above the company's estimate of $73.5 million to $74.5 million.
During the quarter, average monthly unique visitors jumped 30 percent to roughly 132 million. Active local business accounts grew 65 percent to about 74,000.
Yelp, which went public in March 2012, is also involved in a closely watched Internet free-speech case in Virginia, involving business owners that have sued reviewers on Yelp for defamation. Yelp has argued that the reviews are protected under the First Amendment.
Yelp's shares were up 3.6 percent at $60.41 in after-hours trading.
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