YELP - Embedded Expectations Analysis - 2019 03 01
Yelp Inc. (YELP:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 15.1x Uniform P/E, implying bearish expectations for the firm. Additionally, management has concerns about their ability to sustain revenue and EBITDA growth, penetrate the booking experience category, and generate user engagement with product improvementsSpecifically, they may lack confidence in their ability to drive app traffic, as well as sustain revenue, EBITDA, and home and local services growth. Moreover, they may be concerned about returns to shareholders, and their ability to leverage self-service customer acquisitions. Furthermore, they may be exaggerating platform transformations, and might be concerned about their ability to maintain booking experience category penetration and monthly user gains. Moreover, they may be concerned about their ability to improve user interactions with product improvements, and may be exaggerating the potential of their GrubHub partnership
Yelp provides a platform to both consumers and businesses by helping each discover and interact with the other. The reviews contributed to the company's platform cover a set of local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto and other categories. The company provides a range of free and paid advertising products to businesses of all sizes, including the ability to deliver targeted search advertising to large local audiences through its website and mobile app. The company also provides several features and consumer-interactive tools.
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