Though still losing money, Yelp posted strong revenue growth
for 2Q12. Unlike Facebook and Zynga, Yelp is excelling largely due to its mobile
growth and a lesser extent to geographic expansion. The site now has 90 active
markets across the globe.
According to the article, “the San Francisco online-reviews
site posted record revenue of $32.7 million in the second quarter of 2012, 67
percent higher than the same quarter a year ago. While the company is still
losing money overall, its net loss of $2 million, or 3 cents a share, was its
best showing to date. Analysts were expecting a loss of 5 cents a share on
revenues of $30.5 million”.
Mobile, an area that Facebook is currently under-serving, has been a focus for Yelp, who has grown active uses largely from their mobile device application. The company noted that average monthly unique visitors grew 52%, with 7.2 million mobile devices reached every month on average, and reviews increased 54%.
The Yelp platform lends itself well to mobile, as it provides location-based capabilities with thorough business reviews. Hopefully this performance coupled with strong projections will finally get Yelp to breakeven!
http://www.siliconvalley.com/news/ci_21211844/biz-break-yelp-breaks-social-medias-losing-streak
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