Yelp (NYSE: YELP), an online site for discovering local businesses ranging from bars, restaurants, and cafes, to hairdressers, spas, and gas stations, is scheduled to report its fiscal second-quarter results on Thursday, August 4. We expect the stock to see little to no movement post the fiscal Q2 release with earnings and revenues both matching expectations. While Yelp
For fiscal 2022, Yelp sees net revenue to come in toward the higher end of the previously disclosed outlook range of $1.16-$1.18 billion in revenue, representing 12-14% yoy revenue growth, and maintains its $260-$280 million in adjusted EBITDA (6 to 14% EBITDA growth) forecast on a 23% adjusted EBITDA margin.
Our forecast indicates that Yelp’s valuation is around $32 a share, which is marginally higher than the current market price. Look at our interactive dashboard analysis on Yelp’s Earnings Preview: What to Expect in Fiscal Q2? for more details.
(1) Revenues expected to be inline with consensus estimates
Trefis estimates Yelp’s Q2 2022 revenues to be around $287 Mil, in line with the consensus estimate. Yelp’s Q1 revenue increased 19% yoy to $276.6 million. The company saw 4% yoy growth in ad clicks while average cost-per-click increased by 17% yoy. The company reported a strong adjusted EBITDA of $48 million, though the EBITDA margin dipped to 17% as the company is investing again for future growth. Going forward, the company expects Q2 net revenue to be in the range of $280 to $290 million. In addition, it also expects adjusted EBITDA to be relatively flat compared to Q1, and in the range of $45 to $55 million. According to company estimates, EBITDA margin will reach 19% (at best) during Q2’22, while YELP’s margins last year were 24%.
(2) EPS likely to match with consensus estimates
Yelp’s Q2 2022 earnings per share is expected to come in at a gain of a cent per Trefis analysis, matching the consensus estimate. In Q1, the company’s earnings per share came in at a loss of a cent, up from a loss of 8 cents in the year-ago quarter.
(3) Stock price estimate appears appropriately priced at the current market price
Going by our Yelp’s Valuationwe estimate revenue per share to come at $15.28 and a P/S multiple of 2.1x in fiscal 2022, translating into a price of around $32, which is almost 2% higher than the current market price.
It is helpful to see how its peers stack up. YELP Peers shows how Yelp compares against peers on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons,
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Credit: www.forbes.com /