YELP - Embedded Expectations Analysis - 2021 06 17
Yelp Inc. (YELP:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with an 86.3x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about Services segment revenues, headcount increases, and Yelp Connect's new audience modelSpecifically, management may lack confidence in their ability to meet upwardly revised revenue and EBITDA guidance, sustain record-high Services segment revenue, and generate offline conversions in the Restaurant, Retail, and Other segment. In addition, they may be exaggerating the potential of Yelp Connect's new audience model, the strength of their marketing investments, and the productiveness of their sales force. Furthermore, management may lack confidence in their ability to maintain low headcount and monetize leads, and they may have concerns about the pace of vaccinations and persisting consumer apprehensiveness to go out
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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