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
I think they all must have failed to read Yelp’s forward looking statement buried at the bottom (embarrassingly formatted exactly as on the report).
Continue reading Yelp’s 2013 Results and the Headlines that Weren’t