Yelp shares plunge after widening losses, CEO says signs of business stabilized in April

Yelp Inc. shares fell 1.3% in the extended session Thursday after the company topped revenue estimates but reported wider-than-expected losses. The company reported a first-quarter net loss of $15.5 million, which amounts to 22 cents a share, versus net income of $1.4 million, or 2 cents a share, in the year-ago quarter. Revenue rose to $249.9 million from $235.9 million. Analysts surveyed by FactSet had estimated a loss of 9 cents a share on sales of $229.8 million. "Our first quarter results demonstrate the strength of our strategy, as we grew revenue 6% compared to the first quarter of 2019, despite the emergence of the COVID-19 pandemic in March," Chief Executive Jeremy Stoppelman said in a statement. "While there is no way of knowing how long this pandemic will last, we are encouraged by the early signs of stabilization in the business that we witnessed in the second half of April." For the second quarter, analysts model a loss of 32 cents a share and sales of $156.8 million. In April, Yelp pulled its 2020 guidance because of the pandemic and disclosed that it expects between $8 million and $10 million in costs related to the furloughing and termination of employees; the company said it was laying off 1,100 people and furloughing 1,100. Yelp stock has dropped 43% in the past year, with the S&P 500 index falling 1.2%.

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