Yelp Inc. (NYSE:YELP) Q3 2023 Earnings Call Transcript

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Jeremy Stoppelman: Yes, certainly engagement is a component to that. We point some success there this quarter with home feed as well as mobile web and desktop web. Yelp have a lot of wins on the contribution side. Driving more reviews along consumers to attach additional content like photos and videos to their reviews which is driven more contributions of those types. So, there’s a number of different ways that you could look at it. Certainly the bigger the audience, the more time spent, all of those are good things. But of course, you have to also think about the categories and the types of activity. Yelp is not a place where we just want you to check out photos of your family or a cat stuck in a tree. It’s very down-funnel, intent-driven, where we want consumers that are trying to find the very best in their city or the important services to fix a need in their home.

And so, we’re going to continue to innovate on that. I mean, I guess one area that we didn’t talk about was Request-a-Quote where we’ve really been driving a lot of innovation there. We added mass phone numbers, we improved the login, and we saw projects move up sequentially. So, that’s another area, I think, of excitement. And frankly, it’s differentiated. Being able to have those conversations with trusted pros, have Yelp guaranteed, backing the interaction, and having the quality review and photo content that we’re known for, I think it’s a powerful combination going into ’24.

Shweta Khajuria: Okay, that’s great. Thanks, Jeremy.

Operator: Your next question comes from the line of Brian Fitzgerald of Wells Fargo. Your line is open.

Stan Velikov: Hi, this is Stan Velikov for Brian. Thanks for taking our questions. If you look at Home Services that was up nicely in the quarter, but at the same time, Request-a-Quote volumes were down. Anything you can tell us about how overall click volumes versus pricing trend is in Home Services specifically? And then has Request-a-Quote been a leading indicator for the health of that category? And basically, how are you thinking about that?

Jeremy Stoppelman: Hi, this is Jeremy. I’ll try and take your question here. So, Request-a-Quote stepping back, I think in the macro services demand has largely been a bit softer than last year. But I think when you look specifically at Request-a-Quote, especially sequentially, what we were able to see is project volume go up, which broke a seasonal trend for us. And so, that is a clear positive what’s driving that, I think, is our innovation we have improved the service, we’ve added mass phone numbers, we’ve improved the login experience, we added Yelp. Yelp is guaranteed nationwide, and we’re moving into other categories. So, there’s a lot of positive signs in terms of Request-a-Quote and project volume. And then, I think if you step back and look at Ad Clicks overall, of which Request-a-Quote is a portion they were up 9% year-over-year reversing trend.

And so, I think that’s another positive showing that the product-led strategy that we have is working. We’re creating more inventory, we’re driving more leads to our advertisers, and ultimately that’s what we’re here for is to drive value for advertisers.

David Schwarzbach: If I can just step back in for a moment, going back to my earlier answer, just in case I misspoke on the implied guide for the fourth quarter 2023, the implied guide is $337 million to $342 million on revenue and $85 million to $90 million on adjusted EBITDA, just wanted to make sure to clarify that in case I misspoke earlier.

Stan Velikov: All right. Great, thank you very much.

Operator: There are no further questions at this time. I will now pass the call over to Jeremy, the [CEO] (ph) for closing remarks.

Jeremy Stoppelman: Thanks everyone for joining us on the call. We’ll see you next quarter.

Operator: This concludes today’s conference call. You may now disconnect.

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