YELP Anticipates Strong FY21 Performance After Better-Than-Expected Q1

Yelp Inc YELP reported a first-quarter FY21 net revenue decline of 7.1% year-on-year of $232.1 million, beating the analyst consensus of $228.41 million. The pandemic and shelter-in-place orders led to the slide.
Under the Advertising revenue category, Services revenue rose 5.7% Y/Y to $140.7 million, and Restaurants, Retail & Other revenue declined 24% Y/Y to $81.3 million. Transaction revenue rose 44.1% Y/Y to $3.8 million, while Other revenue declined 12.1% Y/Y to $6.3 million.
Yelp clocked a net loss of $6 million, with an EPS loss of ($0.08) better than the consensus of ($0.26) loss.
Adjusted EBITDA rose 159% Y/Y to $44 million, and margin expanded 1,200 basis points to 19%.
Yelp held $588.6 million in cash and equivalents and generated $58.9 million in operating cash flow.
It returned $99 million via share buybacks since Q1 FY20.
Guidance: Yelp raised FY21 net revenue guidance from $985 million - $1.005 billion earlier, to $1 billion - $1.02 billion, better than the analyst consensus of $998.18 million.
Adjusted EBITDA guidance was raised from $150 million - $170 million to $175 million - $195 million.
Price action: YELP shares traded lower by 0.47% at $38.05 on the last check Friday.
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