Revenues from Other Services increased 15% last quarter. However, transaction revenues have been witnessing declines over the past two quarters and this trend is not expected to change in the third quarter.
Also read: Yelp Q2 2019 Earnings Conference Call Transcript
The company’s strategy of introducing new products as well as expanding existing ones is likely to pay off in terms of revenue growth and customer retention. Improving the customer experience will also help in driving traffic and fueling growth.
In the second quarter of 2019, Yelp beat earnings estimates while revenues were line with expectations. Revenue rose 5% to $247 million while earnings amounted to $0.16 per share.
For the third quarter of 2019, Yelp has guided for net revenue growth of 8-10% compared to the year-ago period. For full-year 2019, the company expects net revenue growth of 8-10% versus 2018.
Yelp’s shares have dropped 5% year-to-date. The stock was down slightly in morning trade on Wednesday.