Yelp Inc 10-Q for FY2022 Q2

Yelp Inc (YELP)

10-Q 2022-08-05 For: 2022-06-30

Added on April 11, 2026

About this 10-Q

Yelp Inc filed this 10-Q on August 5, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $298.88M; up 16.2% from $257.19M a year earlier
Net income: $8.01M; up 90.1% from net income of $4.21M a year earlier
Diluted EPS: $0.11; up 120.0% from $0.05 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware			20-1854266
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page
Part I.	Financial Information
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Condensed Consolidated Statements of Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
Part II.	Other Information
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures


	June 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	421,162	$	479,783

Accounts receivable (net of allowance for doubtful accounts of $8,686 and $7,153 at June 30, 2022 and December 31, 2021, respectively)	124,690		107,358
Prepaid expenses and other current assets	65,334		57,536
Total current assets	611,186		644,677

Property, equipment and software, net	82,212		83,857
Operating lease right-of-use assets	122,698		140,785
Goodwill	101,526		105,128
Intangibles, net	9,679		10,673
Restricted cash	1,052		858
Other non-current assets	94,815		64,550
Total assets	$	1,023,168	$	1,050,528
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	132,688	$	119,620
Operating lease liabilities — current	41,177		40,237
Deferred revenue	6,141		4,156
Total current liabilities	180,006		164,013
Operating lease liabilities — long-term	105,809		127,979
Other long-term liabilities	18,749		7,218
Total liabilities	304,564		299,210
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.000001 par value — 200,000 shares authorized, 71,226 shares issued and 71,119 shares outstanding at June 30, 2022, and 72,171 shares issued and outstanding at December 31, 2021	—		—
Additional paid-in capital	1,587,337		1,522,572
Treasury stock	(3,138)		—
Accumulated other comprehensive loss	(15,657)		(11,090)
Accumulated deficit	(849,938)		(760,164)
Total stockholders' equity	718,604		751,318
Total liabilities and stockholders' equity	$	1,023,168	$	1,050,528


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenue	$	298,884	$	257,188	$	575,512	$	489,284
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	26,988		17,993		50,417		32,867
Sales and marketing	129,412		113,641		255,509		226,550
Product development	76,848		68,695		157,533		136,687
General and administrative	38,377		45,095		77,760		76,956
Depreciation and amortization	11,258		12,833		22,748		25,916
Restructuring	—		12		—		32
Total costs and expenses	282,883		258,269		563,967		499,008
Income (loss) from operations	16,001		(1,081)		11,545		(9,724)
Other income, net	1,327		542		2,256		1,247
Income (loss) before income taxes	17,328		(539)		13,801		(8,477)
Provision for (benefit from) income taxes	9,319		(4,751)		6,707		(6,893)
Net income (loss) attributable to common stockholders	$	8,009	$	4,212	$	7,094	$	(1,584)
Net income (loss) per share attributable to common stockholders
Basic	$	0.11	$	0.06	$	0.10	$	(0.02)
Diluted	$	0.11	$	0.05	$	0.10	$	(0.02)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders
Basic	71,217		74,807		71,427		75,025
Diluted	72,835		78,983		73,572		75,025


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance as of March 31, 2021	75,153	$	—	$	1,428,890	$	(3,313)	$	(9,559)	$	(588,918)	$	827,100

Issuance of common stock upon exercises of employee stock options	41	—		863		—		—		—		863
Issuance of common stock upon vesting of restricted stock units ("RSUs")	744	—		—		—		—		—		—
Issuance of common stock for employee stock purchase plan	255	—		8,675		—		—		—		8,675
Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		44,174		—		—		—		44,174
Shares withheld related to net share settlement of equity awards	—	—		(18,112)		—		—		—		(18,112)
Repurchases of common stock	—	—		—		(64,629)		—		—		(64,629)
Retirement of common stock	(1,603)	—		—		63,692		—		(63,692)		—
Foreign currency adjustments, net of tax	—	—		—		—		1,181		—		1,181
Net income	—	—		—		—		—		4,212		4,212
Balance as of June 30, 2021	74,590	$	—	$	1,464,490	$	(4,250)	$	(8,378)	$	(648,398)	$	803,464

Balance as of March 31, 2022	71,641	$	—	$	1,547,337	$	(2,886)	$	(11,903)	$	(808,199)	$	724,349
Issuance of common stock upon exercises of employee stock options	61	—		1,351		—		—		—		1,351
Issuance of common stock upon vesting of RSUs	710	—		—		—		—		—		—
Issuance of common stock for employee stock purchase plan	364	—		9,110		—		—		—		9,110
Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		43,224		—		—		—		43,224
Shares withheld related to net share settlement of equity awards	—	—		(13,685)		—		—		—		(13,685)
Repurchases of common stock	—	—		—		(50,000)		—		—		(50,000)
Retirement of common stock	(1,550)	—		—		49,748		—		(49,748)		—
Foreign currency adjustments, net of tax	—	—		—		—		(3,754)		—		(3,754)
Net income	—	—		—		—		—		8,009		8,009
Balance as of June 30, 2022	71,226	$	—	$	1,587,337	$	(3,138)	$	(15,657)	$	(849,938)	$	718,604


	June 30, 2022		December 31, 2021
Cash	$	30,147	$	89,407
Cash equivalents	391,015		390,376
Total cash and cash equivalents	$	421,162	$	479,783
Restricted cash	1,052		858
Total cash, cash equivalents and restricted cash	$	422,214	$	480,641


	June 30, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	391,015	$	—	$	—	$	391,015	$	390,376	$	—	$	—	$	390,376






Other investments:
Certificates of deposit	—		10,000		—		10,000		—		10,000		—		10,000
Total cash equivalents and other investments	$	391,015	$	10,000	$	—	$	401,015	$	390,376	$	10,000	$	—	$	400,376


	June 30, 2022		December 31, 2021
Prepaid expenses	$	14,538	$	13,480
Certificates of deposit	10,000		10,000
Other current assets	40,796		34,056
Total prepaid expenses and other current assets	$	65,334	$	57,536


	June 30, 2022		December 31, 2021
Capitalized website and internal-use software development costs	$	216,468	$	202,169
Leasehold improvements	61,515		59,190
Computer equipment	50,685		48,264
Furniture and fixtures	11,841		12,573
Telecommunication	4,941		4,953
Software	1,702		1,703
Total	347,152		328,852
Less accumulated depreciation and amortization	(264,940)		(244,995)
Property, equipment and software, net	$	82,212	$	83,857


Balance as of December 31, 2021	$	105,128
Effect of currency translation	(3,602)
Balance as of June 30, 2022	$	101,526


	June 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Life
Business relationships	$	9,918	$	(5,196)	$	4,722	6.7	years
Developed technology	7,709		(7,709)		—		0.0	years
Licensing agreements	6,129		(1,183)		4,946		7.7	years

Domains and data licenses	2,869		(2,858)		11		1.0	years


Total	$	26,625	$	(16,946)	$	9,679



Remainder of 2022	$	682
2023	1,359
2024	1,353
2025	1,353
2026	1,353
2027	1,353
Thereafter	2,226
Total amortization	$	9,679


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	10,499	$	12,631	$	21,166	$	26,394
Short-term lease cost (12 months or less)	270		136		524		273
Sublease income	(2,777)		(1,778)		(5,555)		(3,406)
Total lease cost, net	$	7,992	$	10,989	$	16,135	$	23,261



Remainder of 2022	$	23,967
2023	45,369
2024	42,667
2025	22,134
2026	7,197
2027	6,386
Thereafter	16,258
Total minimum lease payments	163,978
Less imputed interest	(16,992)
Present value of lease liabilities	$	146,986


	June 30, 2022		December 31, 2021
Weighted-average remaining lease term (years) — operating leases	4.4		4.8
Weighted-average discount rate — operating leases	5.3	%	5.4	%


	Six Months Ended June 30, 2022
Balance, beginning of period	$	16,931
Add: costs deferred on new contracts	14,482
Less: amortization recorded in sales and marketing expenses	(8,413)
Balance, end of period	$	23,000


	June 30, 2022		December 31, 2021
Deferred tax assets	$	64,597	$	40,606
Deferred contract costs	23,000		16,931
Other non-current assets	7,218		7,013
Total other non-current assets	$	94,815	$	64,550


	June 30, 2022		December 31, 2021
Accounts payable	$	17,485	$	16,127
Employee-related liabilities	60,285		50,132
Accrued sales and marketing expenses	8,582		5,455

Accrued cost of revenue	7,058		9,537

Accrued legal settlements	26,011		26,037
Other accrued liabilities	13,267		12,332
Total accounts payable and accrued liabilities	$	132,688	$	119,620


	June 30, 2022		December 31, 2021
	Shares Authorized	Shares Issued	Shares Authorized	Shares Issued
Stockholders’ equity:
Common stock, $0.000001 par value	200,000	71,226	200,000	72,171
Undesignated preferred stock	10,000	—	10,000	—


	Number of Shares (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021	3,979	$	32.59	4.4	$	24,580
Granted	10	31.42
Exercised	(88)	21.80
Canceled	(20)	36.86
Outstanding at June 30, 2022	3,881	$	32.82	3.8	$	9,017
Options vested and exercisable at June 30, 2022	3,673	$	32.69	3.5	$	9,017


	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2021	10,016	$	32.39
Granted	5,489	35.62
Vested(1)	(2,543)	33.62
Canceled	(1,395)	33.21
Nonvested at June 30, 2022	11,567	$	33.55


	June 30, 2022		December 31, 2021
United States	$	77,367	$	79,027
All other countries	4,845		4,830
Total long-lived assets	$	82,212	$	83,857


	Three Months Ended June 30,				% Change	Six Months Ended June 30,				% Change
	2022		2021			2022		2021
Services	$	174,298	$	152,522	14%	$	334,561	$	293,209	14%
Restaurants, Retail & Other	109,220		92,439		18%	212,194		173,739		22%
Total Advertising Revenue	$	283,518	$	244,961	16%	$	546,755	$	466,948	17%


Period	Total Number of Shares Purchased(1)	Average Price Paid per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program
April 1 – April 30, 2022	723	$	34.27	723	$	156,891
May 1 – May 31, 2022	265	$	29.85	265	$	148,984
June 1 – June 30, 2022	587	$	29.52	587	$	131,658


		YELP INC.
Date:	August 5, 2022	/s/ David Schwarzbach
		David Schwarzbach
		Chief Financial Officer
		(Principal Financial and Accounting Officer and Duly Authorized Signatory)


1.	I have reviewed this Quarterly Report on Form 10-Q of Yelp Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			August 5, 2022

/s/ Jeremy Stoppelman

Jeremy Stoppelman
Chief Executive Officer


1.			The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2022, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2.			The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.