Yelp (YELP) saw its loss narrow to $4.78 million, or $0.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $15.45 million, or $0.20 a share. On the other hand, adjusted net income for the quarter stood at $16.27 million, or $0.19 a share compared with $5.96 million or $0.08 a share, a year ago. Revenue during the quarter grew 24.41 percent to $197.32 million from $158.61 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 91.43 percent. Operating margin for the quarter stood at negative 2.76 percent as compared to a negative 9 percent for the previous year period.
Operating loss for the quarter was $5.44 million, compared with an operating loss of $14.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.27 million compared with $13.03 million in the prior year period. At the same time, adjusted EBITDA margin improved 662 basis points in the quarter to 14.83 percent from 8.21 percent in the last year period.
"We had a solid first quarter, growing revenue by 24% and accelerating traffic growth across the app, desktop and mobile website," said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. "In addition, engagement per unique visitor continues to grow, accelerating on the app where we derive the majority of our activity. Our recent acquisitions of Nowait and Turnstyle introduce more ways for consumers to interact through Yelp, while also enhancing our ability to deliver value to business owners."
For the second-quarter 2017, Yelp expects revenue to be in the range of $202 million to $206 million.
For financial year 2017, Yelp expects revenue to be in the range of $850 million to $865 million.
Operating cash flow improves significantly Yelp has generated cash of $41.24 million from operating activities during the quarter, up 72.68 percent or $17.36 million, when compared with the last year period.
The company has spent $44.58 million cash to meet investing activities during the quarter as against cash outgo of $13.19 million in the last year period.
Cash flow from financing activities was $3.29 million for the quarter, up 214.55 percent or $2.24 million, when compared with the last year period.
Cash and cash equivalents stood at $272.28 million as on Mar. 31, 2017, up 48.38 percent or $88.77 million from $183.50 million on Mar. 31, 2016.
Working capital increases sharply
Yelp has recorded an increase in the working capital over the last year. It stood at $495.70 million as at Mar. 31, 2017, up 27.63 percent or $107.30 million from $388.40 million on Mar. 31, 2016. Current ratio was at 7.85 as on Mar. 31, 2017, up from 7.59 on Mar. 31, 2016.
Days sales outstanding went down to 28 days for the quarter compared with 31 days for the same period last year.
At the same time, days payable outstanding went up to 70 days for the quarter from 20 for the same period last year.
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