Yelp represents a well-known service that allows users to search for reviews of local business, mostly focused on restaurants and cafes, while users are also searching for local business that offer a wide range of services such as car repairing for example.
Users are also able to provide reviews for these businesses, that way generating value that Yelp could later on monetize even before becoming a publicly traded company under the thicker (YELP), given the fact that the platform is now counting 34 million unique visitors accessing the platform through the official YELP application, while reports state that there are around 171 million reviews on the website.
Yelp surprise everyone with financial reports for Q3 2018 when the share price almost doubled year to year, however, is Yelp profitable even in 2019 and should you invest in Yelp stocks?
How Profitable is Investing in Yelp Stocks in 2019?
Yelp is said to have improved its share repurchase authorization by the end of 2018 based on the reports for the last fiscal year published at the beginning of February 2019.
Moreover, Yelp appears to have significantly improved profitability of the company over the course of the past several years, also managing to reach a double-digit growth during the same period.
Yelp reported revenue of 243.7 million dollars for the last quarter of 2018, compared to 219.4 million dollars in revenue from Q4 2017, indicating a healthy growth of the company.
Furthermore, the company reported 11.1% of growth in revenue for the last quarter of 2018, also adding 31.9 million for GAAP net income attributable to common stockholders.
Revenues generated through advertising also grew by 12% year to year period due to managing a larger sales force, also having the revenue generated through other services provided by Yelp growing by 23% during the last year.
Overall impression is that Yelp has a clear growth potential and is obviously showing progress that is also reflected on the price of YELP stocks in the market.
