SAN FRANCISCO | Yelp’s shares take a beating after revenue miss
SAN FRANCISCO — Shares of Yelp Inc. took a beating Thursday after the online-reviews site reported soft third-quarter sales and indicated the current period would also be weak.
Yelp’s stock was down $12.50, or 29 percent, to $31 in after-hours trading.
CEO Jeremy Stoppleman blamed the revenue miss on the company’s new non-term advertising, intended to encourage advertisers to try the site without being tied to longer-term contracts.
“While the shift to non-term advertising has opened our sales funnel, it has also made our results more sensitive to short-term operational issues,” Stoppleman said in a new release.