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Good bad news – Yelp loses money, but not as much

Yelp narrowed its quarterly loss in its most recent earnings report.

Yelp narrowed its quarterly loss in its most recent earnings report.

When is losing money not the worst news? When it’s not as much money as previous quarters.

San Francisco-based Yelp, the service-review website that has increasingly lost money nearly every year since it starting publicly tracking its earnings in 2008, again sustained a year-over-year net loss when it reported earnings on Wednesday, according to Bloomberg.

But that loss narrowed to $878,000, or 1 cent a share, on $55 million in quarterly revenue. That’s an improvement from 2012’s Q2 when the company lost $2 million, or 3 cents.

Analysts on average had projected a loss of 4 cents in the recent quarter, according to Bloomberg.

Bloomberg reported that Yelp CEO Jeremy Stoppleman is banking on deals with restaurant reservation site OpenTable, food delivery site Eat24Hours LLC and Apple Inc. to increase site stickiness. That stickiness is drawing local businesses. The company said business advertising is up 77 percent to $44.8 million.

“We’re increasingly positive on Yelp’s efforts to close the loop and drive transactions on the site,” Kaizad Gotla, an analyst at JPMorgan Chase Co. in New York, wrote in a report, according to Bloomberg.


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Mystic Maggie

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