YELP

Yelp Inc

TMT


Presented:11/24/2020
Price:$33.32
Cap:$2.47B
Current Price:$34.90
Cap:$2.34B

Presented

Date11/24/2020
Price$33.32
Market Cap$2.47B
Ent Value$1.10B
P/E RatioN/A
Book Value$11.03
Div Yield0%
Shares O/S74.00M
Ave Daily Vol1,193,926
Short Int14.22%

Current

Price$34.90
Market Cap$2.34B
Yelp, Inc. engages in the provision of an one-stop local platform for consumers to discover, connect, and transact with local businesses of all sizes. It operates through the following segments: Advertising, Transactions, and Other services. The Advertising segment offers a range of free and paid advertising products to businesses of all sizes, including the ability to deliver targeted search advertising to large local audiences through website and mobile app. The Transactions segment comprises several features and consumer-interactive tools to facilitate transactions between consumers and the local businesses can find on Yelp. The Other Services segment consists revenue through subscription services, licensing payments for access to Yelp data, and other non-advertising, non-transaction arrangements. The company was founded by Jeremy Stoppelman and Russell Simmons in July 2004 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), ANGI Homeservices Inc (ANGI), Yelp Inc (YELP)

Highlights

The presenter is long shares of Yelp Inc (YELP) and views it as a semi-COVID-19 recovery story with a structural angle that is misunderstood as the business has shifted away from restaurants and toward home and local services. YELP’s business has performed better than expected during the COVID-19 pandemic, as investors initially thought revenue would be down ~50%, instead it was only down ~16% YoY in Q3. The reason for that, is that despite a decline in their restaurant business, YELP’s home and local services category has picked up during the pandemic and is now YELP’s largest business. Their products, like Request-A-Quote, have resonated well with these types of service businesses that tend to be lower churn customers (i.e., less likely to go bankrupt) than restaurants. Home and local services is experiencing 10%+ structural growth and he believes it should continue to accelerate as the company takes share from Angie’s Homeservices due to ANGI’s higher price point. . 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.