Yelp Inc. (NYSE: YELP) is slated to report third quarter 2019 earnings results on Thursday, November 7, after the market closes. The company is expected to report higher revenue and earnings for the quarter. Analysts have forecast earnings of $0.19 per share, which compares to $0.17 reported in the prior-year period. Revenue is estimated to increase 8% to $262.2 million.
The topline results are expected to benefit from strength in advertising and services. Yelp generates the majority of its revenue from advertising, and this division saw a growth of 5% in the second quarter. The results were driven mainly by a 6% growth in the number of paying advertising locations last quarter.
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.