Yelp, Still in the Red, Reports Solid Sales Numbers From 2012

By Cameron Scott 

social media, social networks, recommendations, local search, yelpYelp reported a loss of $19 million in 2012, but its sales revenue grew 65 percent.

Yelp’s sales revenue grew 65 percent in 2012. It reported $41 million in revenue in the fourth quarter, which reflected the same 65 percent growth when compared to the fourth quarter of 2011.

Yelp lost $5.3 million in the quarter, reflecting heavier spending on sales and marketing. But its fourth quarter loss in 2011 was significantly larger.

The company managed to boost its local business accounts to 40,000, a 70 percent increase in a year-over-year comparison.

User metrics also showed solid growth, as total reviews grew 45 percent year-over-year. The local business search featured 36 million reviews at the close of 2012. Monthly unique visitors were up nearly a third to 86 million at the end of 2012. After its earnings call, the company announced that in January, it saw 100 million unique visitors, a new record.

“2012 was a tremendous year for Yelp. We completed a successful IPO, launched new products to improve the Yelp experience for consumers and business owners, expanded into new markets while increasing our presence in existing ones, and completed our first acquisition,” CEO Jeremy Stoppelman said in a statement.

In 2013, the company will focus on boosting its user base in Europe and creating more value for business owners. It will also focus on improving its user experience for mobile users.

In the fourth quarter, the Yelp app was used on roughly 9 million mobile devices on a monthly average basis.

Stoppelman said he expects revenue to grow by half in 2013. He did not say whether the company would turn a profit.