REUTERS/Jim Young
Yelp saw its stock plummet 28% to $25.12 after reporting sales that fell short of analyst forecasts and cutting full-year 2017 estimates for revenue and adjusted EBITDA.Net revenue for the period was $197.3 million, missing analyst estimates of $198.4 million. The company also lowered its full-year sales forecast to the range from $850 million to $865 million, down from $880 million to $900 million.
Further, Yelp sees adjusted EBITDA of $130 million to $145 million, a downward adjustment from its previous estimate of $150 million to $165 million.
"While we are lowing our revenue and adjusted EBITDA outlook for the year, sales productivity has rebounded, transactions revenue has accelerated and we've seen promising results from our newly expanded retention efforts," Yelp chief financial officer Lanny Baker said in a statement.
The share weakness is bad news for investors who have already seen Yelp's stock price drop 19% from a roughly 19-month high reached in early February.