Yelp Inc. operates a platform connecting consumers with local businesses in the United States and internationally. Its platform covers categories such as restaurants, shopping, beauty and fitness, health, home, local, auto, professional, pets, events, real estate, and financial services. The company offers free and paid advertising products, including cost-per-click advertising, multi-location ad products, the RepairPal network, and business listing pages. It also provides Yelp Connect, Yelp Guaranteed, Nearby Jobs, Yelp Guest Manager, Yelp Fusion Insights, and Yelp Fusion, as well as content licensing and consumer-interactive tools. Products are offered directly through its sales force, indirectly through partners, and online through its website and business app. It has a partnership with DOORDASH for food ordering for pickup and delivery. Formerly known as Yelp! Inc., it changed its name to Yelp Inc. in November 2005. The company was incorporated in 2004 and is based in San Francisco, California.
Yelp's AI deals and earnings beats drive gains, but ad demand remains soft
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OpenAI licensing deal embeds Yelp reviews in ChatGPT Yelp struck a content-licensing deal with OpenAI to put its reviews, ratings, and business details directly into ChatGPT answers for local searches. This could bring more users and new revenue, pushing the stock up 8% on the news.
This is a major new partnership that directly boosts Yelp's growth prospects and was a key positive catalyst for the stock.
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Q2 earnings beat estimates, driven by AI and data licensing Yelp reported Q2 revenue of $375.5 million and adjusted EPS of $0.95, both above analyst estimates. The beat was fueled by AI-driven offerings and data licensing, sending shares up 5% and reinforcing confidence in its AI strategy.
The earnings beat is a fresh, concrete sign that Yelp's AI investments are paying off, directly lifting investor sentiment.
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Yelp Host AI tool surpasses 1 million calls, expands integrations Yelp's AI-powered restaurant tool, Yelp Host, handled over 1 million calls and expanded reservations and takeout integrations across the US and Canada. This shows strong adoption of its AI products, which could help stabilize revenue if it continues to grow.
This is a new operational milestone that supports the AI growth narrative and potential future revenue stability.
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Fed signals rate cuts may reverse, pressuring ad-dependent platforms The Federal Reserve held rates steady and raised its year-end rate estimate, signaling the easing cycle could reverse. This lifted Treasury yields and raised the discount rate on future cash flows, causing Yelp and other ad-dependent stocks to fall.
This is a new monetary policy shift that directly affects Yelp's valuation by making future earnings less valuable today.
Q3 2026
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Yelp's AI deals and earnings beats drive gains, but ad demand remains soft
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OpenAI licensing deal embeds Yelp reviews in ChatGPT Yelp struck a content-licensing deal with OpenAI to put its reviews, ratings, and business details directly into ChatGPT answers for local searches. This could bring more users and new revenue, pushing the stock up 8% on the news.
This is a major new partnership that directly boosts Yelp's growth prospects and was a key positive catalyst for the stock.
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Q2 earnings beat estimates, driven by AI and data licensing Yelp reported Q2 revenue of $375.5 million and adjusted EPS of $0.95, both above analyst estimates. The beat was fueled by AI-driven offerings and data licensing, sending shares up 5% and reinforcing confidence in its AI strategy.
The earnings beat is a fresh, concrete sign that Yelp's AI investments are paying off, directly lifting investor sentiment.
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Yelp Host AI tool surpasses 1 million calls, expands integrations Yelp's AI-powered restaurant tool, Yelp Host, handled over 1 million calls and expanded reservations and takeout integrations across the US and Canada. This shows strong adoption of its AI products, which could help stabilize revenue if it continues to grow.
This is a new operational milestone that supports the AI growth narrative and potential future revenue stability.
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Fed signals rate cuts may reverse, pressuring ad-dependent platforms The Federal Reserve held rates steady and raised its year-end rate estimate, signaling the easing cycle could reverse. This lifted Treasury yields and raised the discount rate on future cash flows, causing Yelp and other ad-dependent stocks to fall.
This is a new monetary policy shift that directly affects Yelp's valuation by making future earnings less valuable today.
News & notes movingYELP
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Artificial Intelligence▲
Meta's Hatch AI Agent Could Launch Within Weeks
Meta Platforms could debut its new consumer AI agent, internally called Hatch, as soon as late August or early September, according to The Information. Unlike a conventional chatbot, Hatch is designed to communicate with outside services such as DoorDash, Etsy, Reddit, Yelp, and Microsoft Outlook, letting users ask the agent to perform tasks across the web. Meta has also discussed a tiered subscription scheme, with a premium package potentially costing as much as $199.99 per month, though no final pricing has been released. The company is separately eyeing October for a new AI model internally called Watermelon, signaling a faster push from AI research to consumer products.
Yelp reported second-quarter results that beat Wall Street expectations, driven by accelerating growth in AI-driven offerings and data licensing partnerships. Revenue came in at $375.5 million, above analyst estimates of $367 million, while adjusted EPS of $0.95 beat the $0.78 consensus. The company reconfirmed full-year revenue guidance of $1.47 billion at the midpoint and EBITDA guidance of $320 million, in line with expectations. During the earnings call, analysts questioned management on strategic investments in Hatch, the economic impact of data licensing deals like ChatGPT, cross-selling between Yelp Host and advertising, changes in paid lead acquisition for multi-location Services advertisers, and traffic tailwinds from Google algorithm updates.
Yelp Inc. (NYSE:YELP) detailed the company's transition toward AI-centric products and data licensing revenue streams as a means to diversify away from its core advertising segments. Net revenue increased 1% year over year to $376 million, exceeding the high end of the company outlook range by $8 million, while net income decreased 28% to $32 million and adjusted EBITDA declined 9% to $91 million. Other revenue surged 98% to $33 million, driven by the inclusion of Hatch, data licensing fees, and food ordering revenue, and management set a long-term target of a $250 million annual run rate for Other revenue by the end of 2028. The company repurchased $15 million in shares during the quarter at an average price of $24.92 per share, but has paused its buyback program to pay down its revolving credit facility after drawing $165 million and repaying $65 million in the first half of the year. Yelp provided third quarter net revenue guidance of $365 million to $370 million and full year guidance of $1.460 billion to $1.470 billion, with adjusted EBITDA expected between $70 million and $75 million for the third quarter and $315 million to $325 million for the full year.
Yelp beats Q2 estimates as AI products and licensing deals drive growth
Yelp reported second-quarter revenue of $375.5 million, beating analyst estimates of $367 million and growing 1.4% year-on-year, while adjusted earnings per share of $0.95 exceeded the $0.78 consensus. The company credited the outperformance to accelerating growth in AI-driven offerings such as Yelp Host and Hatch, as well as robust demand for data licensing partnerships, including an expanded agreement with OpenAI's ChatGPT. Other revenue nearly doubled year-over-year, driven by Hatch and Yelp Host, which saw call volume triple to a 2.4 million annual run rate. Yelp reconfirmed its full-year revenue guidance of $1.47 billion at the midpoint and expects full-year adjusted EBITDA of $320 million, in line with analyst expectations. Management cautioned that increased investments in AI transformation and consumer marketing will pressure near-term margins, but believes operational efficiencies from AI will help balance profitability over time.
Yelp narrows 2026 revenue guidance and reports Yelp Host handled over 1 million calls
Yelp Inc. narrowed its fiscal 2026 net revenue guidance to a range of US$1.46 billion to US$1.47 billion, while its AI-powered restaurant tool Yelp Host surpassed 1 million handled calls and expanded integrations for reservations and takeout ordering across the US and Canada. The tighter guidance signals steadier near-term expectations, though the company still faces risks from weaker advertiser demand and rising costs if AI products do not scale as hoped. Yelp Host's rapid uptake ties directly into the AI investment thesis, as the tool embeds deeper into restaurant operations and could help stabilize revenue trends if adoption continues to broaden.
Yelp stock pops 8% as OpenAI licensing deal brings reviews to ChatGPT
Yelp shares surged 8% after the company struck a strategic content-licensing deal with OpenAI. The partnership embeds Yelp's database of reviews, ratings, photos, and business details directly into ChatGPT responses for local queries, displaying official Yelp branding, back-links, and access to the Request a Quote feature. Financial terms were not disclosed, but the contract is non-exclusive, allowing Yelp to pursue similar deals across the AI landscape. CEO Jeremy Stoppelman told Axios that Yelp's decades of human-generated review data give it a crucial edge as AI systems increasingly seek authentic, real-world context.
Upwork and Yelp Shares Rise on Strong Prime Day Sales and Falling Yields
Shares of Upwork and Yelp climbed in afternoon trading, boosted by record Prime Day sales and a drop in Treasury yields that lifted sentiment for digital platforms. U.S. online sales reached $8.3 billion, up 5.3% year-over-year, signaling robust consumer demand that supports advertising budgets. The 10-year Treasury yield fell below 4.5%, lowering the discount rate on future cash flows for consumer internet companies. Upwork rose 1% and Yelp jumped 3.1%, while Alphabet gained 1% ahead of its Dow inclusion. Yelp remains down 22.5% year-to-date, trading at $23.39 per share, 33.7% below its 52-week high.
Social Networking Stocks Post Strong Q1 Revenue Beats but Shares Slide
Social networking stocks delivered a strong first quarter, with aggregate revenues beating analyst consensus estimates by 3.4% and next-quarter revenue guidance coming in 1.1% above expectations. Pinterest reported revenues of $1.01 billion, up 17.8% year on year and exceeding estimates by 4.4%, while Reddit posted revenues of $663.4 million, up 69.1% and beating by 8.8%. Meta reported revenues of $56.31 billion, up 33.1% and beating by 1.4%, Snap reported revenues of $1.53 billion, up 12.1% and in line with estimates, and Yelp reported revenues of $361.5 million, flat year on year and beating by 2.2%. Despite the beats, share prices of the five companies tracked have fallen an average of 8.6% since their earnings releases, with Meta down 14.1%, Snap down 21.6%, Yelp down 20.9%, and Pinterest down 1.3%, while Reddit bucked the trend with a 15.1% gain.
Snap, Pinterest, and Yelp Stocks Fall After Fed Signals Rate Cuts May Reverse
Shares of Snap, Pinterest, and Yelp declined in afternoon trading after the Federal Reserve held its benchmark rate at 3.5% to 3.75% and raised its median year-end rate estimate from 3.4% to 3.8%, signaling the easing cycle could reverse. The 2-year Treasury yield jumped 11 basis points to 4.161%, raising the discount rate on future cash flows for advertising-dependent platforms. Snap fell 5.6%, Pinterest fell 2.9%, and Yelp fell 4%. Snap's shares are very volatile and have had 27 moves greater than 5% over the last year, and the stock is down 41.5% since the beginning of the year, trading at $4.76 per share.
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