Yelp Inc. (YELP) Thursday reported higher earnings and revenues for the third quarter, but the top-line missed estimates. The company’s stock plunged 27% following the announcement.
Revenues of the company, which provides crowd-sourced online review service, increased to $241.1 million in the third quarter from $223.3 million last year but missed estimates.
Net income moved up to $14.9 million or $0.17 per share during the three-month period from $8 million or $0.09 per share in the year-over period. Analysts had expected earnings of $0.08 per share.
“We remain positive about the move to more flexible and dynamic advertising terms, as we believe the shift greatly increases our long-term sales opportunity and opens up additional levers to expand Yelp’s sales reach and profit margins,” said Yelp CEO Jeremy Stoppelman.
Yelp shares closed Thursday’s session lower, after falling 6% over the past twelve months. The stock dropped further in the after-hours following the announcement.