Yelp Inc. reported a net revenue of $358.5 million for the first quarter of 2025, marking an 8% increase from $332.8 million in the same period last year. The company achieved a net income of $24.4 million, a significant rise of 72% compared to $14.2 million in the prior year. This growth in profitability was driven by a 14% increase in advertising revenue from Services categories, which now includes revenue from the recently acquired RepairPal, contributing to the overall positive financial performance.
In terms of operational metrics, Yelp's advertising revenue from Services reached $231.6 million, while revenue from Restaurants, Retail & Other categories decreased by 3% to $110.4 million. The total number of paying advertising locations fell by 3% year-over-year to 517,530, with Services locations increasing by 3% and RR&O locations declining by 8%. The average cost-per-click (CPC) rose by 9%, reflecting strong advertiser demand in Services despite a 3% decrease in ad clicks, primarily due to macroeconomic pressures.
Strategically, Yelp completed the acquisition of RepairPal in November 2024 for approximately $81.2 million, which is expected to enhance its offerings in the auto services advertising vertical. The integration of RepairPal is anticipated to drive further growth in the Services category. Additionally, Yelp has been investing in product development and marketing initiatives, including enhancements to its matching algorithms and the introduction of AI-powered features to improve user experience and advertiser value.
Yelp's total assets as of March 31, 2025, stood at $985.2 million, with cash and cash equivalents of $222.0 million. The company reported a total of 64.7 million shares outstanding, down from 65.8 million at the end of 2024, following a stock repurchase program that has authorized up to $1.95 billion in buybacks. Looking ahead, Yelp expects to see sequential increases in both net revenue and adjusted EBITDA in the second quarter of 2025, while also anticipating a modest rise in expenses primarily driven by cost of revenue.
About YELP INC
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