Shares of online review site Yelp went belly-up on Tuesday afternoon, falling nearly 28 per cent in after-hours trading after it cut its full-year sales guidance.
The US-based company — which offers a platform for consumer reviews of bars, restaurants and more — is now looking for net revenue for the full year between $850m and $865m, nipping in its previous range of $880m-$900m offered last quarter. It also slashed its guidance for adjusted Ebitda over the year from $150m-$165m to $130m-$145m.
The dimmer outlook came as the company reported net revenue of $197.3m, a 24 per cent year-on-year increase and just short of the $198.4m that analysts surveyed by Bloomberg had expected. The net loss for the quarter was $4.8m, or 6 cents a basic share, smaller than the $6.8m loss, or 8 cents a share, that analysts were looking for.
The company’s shares have risen 34.3 per cent in the past 12 months.
Yelp chief financial officer Lanny Baker said:
“While we are lowering 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, giving us confidence in our ability to grow and scale in 2017 and beyond.”