Tech

Yelp plummets 8% as guidance falls short

Yelp sinks on Q4 results
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Yelp sinks on Q4 results

Shares of Yelp fell more than 8 percent after hours Thursday after the company reported its quarterly financial results.

The online review platform reported $195 million in revenue for the fourth quarter, in line with a Thomson Reuters consensus estimate. Earnings were 10 cents a share in terms of generally accepted accounting principles.

Yelp employees in the New York City office.
Spencer Platt | Getty Images

But the company reported forward guidance that was slightly below estimates. Yelp expects $25 million to $28 million adjusted earnings before interest, tax, depreciation and amortization in the first quarter, below the $30 million average forecast by FactSet.

Yelp also predicted revenue of $195 million to $199 million in the first quarter. FactSet estimates were $204.4 million.

Yelp CEO Jeremy Stoppelman said in a statement that the San Francisco company would focus on increasing engagement on the app, expanding transactions and broadening its sales strategy this year.