Daily update with video 12/26 $YELP Yelp Inc.

AD Tech is starting to perk up for 2024 - Yelp is a good opportunity

Yelp: A Deep Dive into the Crowdsourced Local Business Platform

Here's a comprehensive overview of Yelp, delving into its history, products, customers, financials, and key issues for the coming year.

Founding and Evolution:

Yelp began in 2004, the brainchild of former PayPal employees Jeremy Stoppelman and Russel Simmons. Driven by the frustration of unreliable offline review sources, they envisioned a platform where real people could share their experiences with local businesses. Yelp quickly gained traction, fueled by its user-friendly interface and emphasis on transparency.

Products and Services:

Yelp's core offering is its crowdsourced review platform. Users can rate and review businesses on a five-star scale, leaving detailed comments about their experiences. This data not only informs consumer decisions but also provides valuable insights for businesses who can actively manage their online reputation. Yelp further bolsters its platform with:

• Photos and videos: Users can upload visuals, adding another layer of information and personality to business profiles.

• Events: Local businesses can list events and promotions, fostering community engagement and foot traffic.

• Reservations and waitlists: Yelp partners with services like OpenTable to facilitate online reservations and queue management.

• Yelp Connect: A suite of tools for businesses to manage their online presence, track reviews, and engage with customers.

Reaching a Global Audience:

While headquartered in San Francisco, Yelp operates in over 30 countries, covering major cities and smaller towns alike. This global reach ensures a diverse user base and business representation, catering to a wide range of consumer needs.

Customers and Revenue Streams:

Yelp serves two distinct customers:

• Consumers: Individuals seeking local businesses, relying on reviews and information to make informed decisions.

• Businesses: Local businesses of all sizes who use Yelp to manage their online presence, attract customers, and gain valuable feedback.

Yelp generates revenue through various channels:

• Advertising: Businesses can pay for premium features like enhanced profiles and sponsored listings.

• Transactions: Yelp earns commissions on reservations and other transactions facilitated through its platform.

• Data licensing: Yelp licenses its business data to other companies for market research and analytics.

3-Year Financial Performance:

• Revenue: Yelp's revenue has fluctuated, reaching a peak of $1.1 billion in 2019 before dipping during the pandemic and subsequently recovering. 2023 is on track to see steady growth.

• Profitability: Yelp has struggled to consistently turn a profit, often reporting net losses. However, it has also shown periods of profitability, indicating potential for a more stable financial future.

• Stock Price: Yelp's stock price has been volatile, mirroring the company's overall financial performance. It peaked at over $100 in 2018 but has since fluctuated between $30 and $50.

Key Issues for 2024:

Several key issues will shape Yelp's future in 2024:

• Competition: Yelp faces stiff competition from platforms like Google Maps, TripAdvisor, and social media, all vying for local business listings and user engagement.

• Regulation: Data privacy concerns and potential regulatory changes around online reviews could impact Yelp's core business model.

• Monetization: Yelp needs to continue finding innovative ways to monetize its platform, particularly while balancing user experience and business needs.

• Maintaining Community: Fostering a vibrant and engaged community of reviewers and businesses remains crucial for Yelp's long-term success.