Yelp is slated to report its first quarter earnings after the close, with a conference call scheduled for 4:30 PM ET.

Analyst estimates call for EPS of $0.03, Revs +31.2% y/y to $155.53 mln. Expectations are in-line with the company's provided guidance from their Q4 report for revenues of $154-157 mln. 


Yelp typically provides next quarter's guidance and an updated FY outlook. Here are the expectations:

  • Q2: EPS of $0.12; revs +25.1% y/y to $167.51 mln
  • FY16: EPS of $0.54; revs +25.7% y/y to $690.95 mln...Yelp's current FY16 guidance is for revs of $685-700 mln

Highlights from Last Quarter:

  • Reported Q4 (Dec) earnings of $0.11 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.12; revenues rose 39.9% year/year to $153.7 mln vs the $152.31 mln Consensus. Adjusted EBITDA was $17.5 mln vs. $20-24 mln guidance.

  • Issued upside guidance for Q1, sees Q1 revs of $154-157 mln vs. $153.93 mln Consensus; adj. EBITDA $10-12 mln.

  • Issued upside guidance for FY16, sees FY16 revs of $685-700 mln vs. $687.49 mln Consensus; adj. EBITDA $90-105 mln.
  • Announced that CFO Rob Krolik will be stepping down and departing the company in the coming months.

TECHS:

David Einhorn recently gave everyone his long thesis on YELP. Citing acquisition as a primary catalyst. The problem with this thesis is that the product has become commoditized with Amazon and Google all offering their own variations. Their business model and debt also present challenging obstacles to overcome for this thesis.

Based on the YELP weekly May06 $22 straddle, the options market is currently pricing in a move of ~16% in either direction by weekly expiration.