Yelp Inc. (YELP) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $8.26 million, or $ 0.10 a share in the quarter, against a net loss of $22.23 million, or $0.29 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $22.55 million, or $0.27 a share compared with $8.98 million or $0.11 a share, a year ago.
Revenue during the quarter grew 26.71 percent to $194.80 million from $153.73 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 91.99 percent. Operating margin for the quarter period stood at positive 4.37 percent as compared to a negative 4.17 percent for the previous year period.
Operating income for the quarter was $8.52 million, compared with an operating loss of $6.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $45.27 million compared with $17.54 million in the prior year period. At the same time, adjusted EBITDA margin improved 1183 basis points in the quarter to 23.24 percent from 11.41 percent in the last year period.
"We had an outstanding year, growing local revenue by 39%,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. "I am extremely proud of how Yelp has become deeply integrated into consumers’ daily habits and increasingly essential to local business owners. In 2017, we look forward to increasing engagement on the app, expanding transactions and broadening our sales strategy."
For financial year 2017, Yelp Inc. expects revenue to be in the range of $880 million to $900 million.
For the first-quarter, Yelp Inc. expects revenue to be in the range of $195 million to $199 million.
Operating cash flow improves significantly
Yelp Inc. has generated cash of $126.90 million from operating activities during the year, up 121.23 percent or $69.54 million, when compared with the last year.
The company has spent $55.57 million cash to meet investing activities during the year as against cash outgo of $158.68 million in the last year. It has incurred net capital expenditure of $37.28 million on net basis during the year, down 14.06 percent or $6.10 million from year ago.
Cash flow from financing activities was $29.52 million for the year, up 11.65 percent or $3.08 million, when compared with the last year.
Cash and cash equivalents stood at $272.20 million as on Dec. 31, 2016, up 58.61 percent or $100.59 million from $171.61 million on Dec. 31, 2015.
Working capital increases sharply
Yelp Inc. has recorded an increase in the working capital over the last year. It stood at $500.78 million as at Dec. 31, 2016, up 27.26 percent or $107.27 million from $393.50 million on Dec. 31, 2015. Current ratio was at 9.29 as on Dec. 31, 2016, up from 8.91 on Dec. 31, 2015.
Days sales outstanding were almost stable at 16 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 6 days for the quarter from 10 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
