Yelp announced their 2013 “earnings” last week. I am continually shocked by the rosy headlines and the lack of due diligence often present in the reporting.
Some of the more egregious examples of uncritical coverage:
- Yelp Pushes Through The Controversies With Big Growth And A 5-Star Quarter
- Yelp shares jump 17.5% on solid Q4 results
- Management Says Yelp Is Just Getting Started
- Yelp Shares Surge 7% On Rosy Outlook, Q4 Loss Narrows
- Yelp Shares Climb on Strong Q4 Revenue, Guidance
Some were more neutral but still carried an uncritical tone or hints of positive results.
- Yelp Reports $233 Million In Revenue For 2013, Up 69 Percent
- In Yelp Earnings, No Sign of the ‘Mobile Gap’
Few if any of the headlines that I found were critical with but one exception.
Here is a chart showing Yelps Revenue Growth compared to Expenses over the past 5 years. I am having trouble seeing a reason for optimism. This has been the same story for many years. See for yourself.
I would suggest that the headlines should have been:
- Yelp Reports 5th Consecutive Annual Loss
- Yelp reports 20th Sequential Unprofitable Quarter
- Yelp, No Profits in Sight as Expenses Rise as Quickly as Income