Yelp sales up 65% from Q4 2011, but suffers net loss of $5.3m

Yelp lost $5.3 million in the fourth quarter ended December 31, 2012 as sales soared 65% to $41.2 million.

The company lost $0.08 per share, compared to a net loss of $9.1 million, or $0.56 per share, in the fourth quarter of 2011 when it had $24.9 million in sales. Yelp had been expected to lose 5 cents a share on $40 million in revenue, according to a consensus estimate offered by Thomson Reuters.

For the entire year, Yelp's revenue was $137.6 million, compared to $83.3 million in the same period last year. The annual loss also grew to $19.1 million, or $0.35 per share, compared to a net loss of $16.9 million, or $1.10 per share.

In a prepared statement, CEO Jeremy Stoppelman described 2012 as a tremendous year" for the company.

"We completed a successful IPO, launched new products to improve the Yelp experience for consumers and business owners, expanded into new markets while increasing our presence in existing ones, and completed our first acquisition," he said. "We believe 2013 will be a tipping point for our brand in Europe as Yelp continues to become a trusted local resource. Our mobile strategy will remain a top priority as engagement increases, and we will continue to focus on the business owner, creating more ways to measure the value of Yelp leads."

On a conference call later in the day to discuss the results with analysts, Stoppelman predicted 2013 would be "a tipping point" in Europe. The company now services 20 ... [Read more]