Yelp (YELP), a platform for businesses and consumers to engage and transact, saw its loss narrow to $1.28 million, or $0.02 a share for the quarter ended Mar. 31, 2015. In the previous year period, the company reported a loss of $2.64 million, or $0.04 a share.
Revenue during the quarter surged 55.10 percent to $118.51 million from $76.41 million in the previous year period. Gross margin for the quarter contracted 70 basis points over the previous year period to 92.66 percent. Operating margin for the quarter stood at negative 3.59 percent as compared to a negative 6.03 percent for the previous year period.
Operating loss for the quarter was $4.25 million, compared with an operating loss of $4.60 million in the previous year period.
"We are excited about our start to the year as we've made significant progress on our key initiatives for 2015," said Jeremy Stoppelman, Yelp's chief executive officer. "In the first quarter, we acquired Eat24 to drive daily usage and improved utility of Yelp and added partners in five additional verticals of Yelp Platform. Looking to the rest of the year, we will continue to seek ways to increase engagement and drive awareness, while striving to demonstrate the value we can deliver to local businesses in order to capture the large local advertising market opportunity."
Operating cash flow improves significantly
Yelp has generated cash of $25.64 million from operating activities during the quarter, up 174.97 percent or $16.31 million, when compared with the last year period. The company has spent $103.72 million cash to meet investing activities during the quarter as against cash outgo of $6.24 million in the last year period.
Cash flow from financing activities was $4.04 million for the quarter, down 36.92 percent or $2.37 million, when compared with the last year period. It has raised net of $3.23 million by selling common stocks.
Cash and cash equivalents stood at $172.63 million as on Mar. 31, 2015, down 56.77 percent or $226.69 million from $399.32 million on Mar. 31, 2014.
Working capital declines
Yelp has witnessed a decline in the working capital over the last year. It stood at $345.53 million as at Mar. 31, 2015, down 14.05 percent or $56.50 million from $402.03 million on Mar. 31, 2014. Current ratio was at 8.29 as on Mar. 31, 2015, down from 15.49 on Mar. 31, 2014.
Days sales outstanding went up to 28 days for the quarter compared with 25 days for the same period last year.
At the same time, days payable outstanding went down to 17 days for the quarter from 44 for the same period last year.
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