{"id":5285,"date":"2017-05-09T22:43:19","date_gmt":"2017-05-09T22:43:19","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/yelp-is-getting-eviscerated-after-it-toned-down-its-expectations-for-the-year.html"},"modified":"2017-05-09T22:43:19","modified_gmt":"2017-05-09T22:43:19","slug":"yelp-is-getting-eviscerated-after-it-toned-down-its-expectations-for-the-year","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/yelp-is-getting-eviscerated-after-it-toned-down-its-expectations-for-the-year.html","title":{"rendered":"Yelp is getting eviscerated after it toned down its expectations for the year"},"content":{"rendered":"


\n<\/p>\n

Yelp shares are down more than 25 percent after the company reported its first-quarter earnings report today, where it reduced its full-year guidance that it set in the previous quarter.<\/p>\n

The company said it would bring in between $850 million and $865 million in revenue for the full fiscal year of 2017. In the fourth quarter (reported in February), Yelp said net revenue was\u00a0expected to be in the range of $880 million to $900 million. That means even though the company\u2019s revenue fell only a little short of what Wall Street was expecting, the company is signaling slower growth than expected.<\/p>\n

So, this happened:<\/p>\n

\"\"<\/p>\n

This isn\u2019t all that surprising. Yelp is going to face increased competition as it finds itself increasingly competing with core platforms like Apple Maps and Google. But beyond even that, Yelp is going to have to figure out ways to put its data in front of users in the ways that\u00a0they<\/em> want \u2014 such as through a voice interface like Hound or Siri or Alexa. That gives Yelp less flexibility to work its business magic on its core site, meaning it may have\u00a0to shift its approach and model going forward.<\/p>\n

While Yelp is out on the market acquiring<\/a> companies<\/a> and unleashing smiling robots for food delivery, its core value \u2014 the data it has assembled over time \u2014 still seems to be what represents most of what Yelp is worth. It\u2019s going to have to diversify its business beyond just that with products like Eat24, but for now it appears that it\u2019s going to take a while to grow into that.<\/p>\n

Really the only reaction here is a\u00a0?. Yelp\u2019s story in the past year has been one of at least a partial recovery, with shares up around 37 percent over the past 12 months. Yelp made a name for itself as the go-to place to find reviews of various venues around the world. And, sure, some of the reviews may be frustratingly vague (and everything is 4 stars), but it still represented a huge well of data for reviews and information about restaurants and the like.<\/p>\n

Still, Yelp has seen slowing revenue growth for some time now.\u00a0If the company itself is paring back its growth expectations, that means it\u2019s trying to set some model closer to reality for Wall Street \u2014 which is inevitably going to make industry observers reset their own models, and the valuation for the company along with it. Before today\u2019s fall off a cliff, Yelp was valued at around $2.8 billion.<\/p>\n

Yelp is going to have to figure out how to monetize users as it serves, for now, as a very robust pool of data that\u2019s accessed in ways that don\u2019t involve go directly to the Yelp app or website. Whether Yelp turns out to be a utility or a product \u2014 a similar question Foursquare has faced \u2014 is going to decide whether or not Yelp is going to be a valuable public company going forward.<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/GkLYCHsL5-k\/<\/p>","protected":false},"excerpt":{"rendered":"

Yelp shares are down more than 25 percent after the company reported its first-quarter earnings report today, where it reduced its full-year guidance that it set in the previous quarter. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[10,7,14,15,6,12,11],"class_list":["post-5285","post","type-post","status-publish","format-standard","hentry","category-latest-update","tag-computer-news","tag-downloads","tag-microsoft-download-news","tag-networking-updates","tag-technology-update","tag-wordpress-plugin-download","tag-wordpress-theme-download"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t