Shares for online consumer and business resources website Yelp (YELP) hit their all-time high on Thursday, leaping to as much as $32.14, a gain of nearly 26 percent, as the company’s earnings report released late the previous day.
Taking advantage of a market-wide rally fueled by unexpectedly good news about jobs, Yelp shares soared on figures that showed the company losing $4.8 million, or $0.08 per share on revenue of $46.1 million, against the prior year period during which the company lost almost twice that amount, $9.8 million, or $0.31 per share on revenue of $27.4 million. Forecasts, meanwhile, had the company losing $0.06 per share on revenue of $44.5 million.
With losses down considerably from last year, and revenue up only slightly, the company’s stock is standing on how its earnings vindicate its business strategy. Yelp’s average number of monthly users had increased 43 percent from a year ago to 102 million, while active business accounts were up 63 percent to 45,000.
10 million of those monthly users accessed the site and its services through mobile devices, a shift the company expects to accelerate with increasing use of the medium to surf the web. 36 percent of local ads were displayed on mobile devices during the quarter, up from 25 percent in Q4 of 2012.
With local ads accounting for 85 percent of Yelp’s sales for Q1, the focus on mobile is as pertinent as it is promising.
Yelp’s shares are already up over 34 percent year-to-date, and the company said that it was raising its revenue target for the second quarter to a range of between $52.5 million to $53.5 million, up from previous analyst forecasts of $50.4 million.
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