Yelp (YELP.US) 2025年第三季度业绩电话会
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会议摘要
Yelp reported record net revenue of $376 million and a 10% net income margin in Q3 2025, driven by AI innovations like Yelp Assistant and Menu Vision. Despite a 2% drop in restaurant and retail revenue, the company launched new voice AI products and emphasized AI strategy growth. CFO noted Q4 revenue might slightly decrease due to macroeconomic uncertainties, but adjusted EBITDA is expected to rise. The earnings call addressed AI advancements, data licensing potential, and financial resilience.
会议速览
Q3 2025 Earnings Call for BLP Incorporated with Q&A SessionConference operator welcomes participants to BLP's Q3 2025 earnings call, outlines procedure for questions, and introduces management team. Safe harbor statement provided, discussing forward-looking statements and risks. Non-GAAP financial measures mentioned, with guidance on where to find further information. Call set to include brief opening comments followed by Q&A.
Yelp's AI-Driven Transformation: Boosting Services Revenue and Consumer ExperienceYelp leverages AI to enhance consumer experience and business services, achieving record net revenue and strong profitability. New features include an AI chatbot, Review Insights, and Menu Vision, driving a 10% increase in service revenue and over 400% growth in project submissions.
Expanding Food Network, Launching AI Products for Enhanced Services and Revenue GrowthPartnered with DoorDash, adding 200,000 restaurants to our network, now totaling over 500,000. Launched two AI subscription products, Yelp Hosts and Yelp Receptionist, combining high-quality data with smart answering services, showing strong market fit. Focused on services and AI products to drive profitable growth and shareholder value.
Q3 Financials Highlight Growth in Services, Decline in RNO RevenueNet revenue rose 4% YoY to $376M, exceeding forecasts. Services revenue hit a quarterly record at $244M, up 7% YoY. However, RNO revenue fell 10% to $114M due to macro and competitive pressures. Ad clicks dropped 11%, while average CPC increased 14%. Company aims for improved margins and reduced stock-based compensation by 2027.
Yelp's Capital Allocation Strategy Amid Economic UncertaintyYelp discusses its capital allocation strategy, including share repurchases, and provides a revised outlook due to macroeconomic uncertainties, expecting decreased revenue but maintaining adjusted EBITDA projections.
Analysis of Macro Environment Impact on RNO and Services SegmentsThe dialogue discusses the impact of macroeconomic pressures on the RNO and services segments, noting a more pronounced effect on RNO due to advertiser caution, while services maintain consistent demand. Seasonal trends are also highlighted, with RNO typically rising and services declining in Q4.
Yelp's Excitement Over Data Licensing and AI Search OpportunitiesThe dialogue highlights Yelp's enthusiasm for its data licensing products, particularly in the AI search sector, emphasizing the value of its trusted SMB content. The speaker notes ongoing high-quality conversations with industry players, indicating strong potential for future growth and integration with AI platforms.
Exploring Revenue Growth through Platform Integrations and PartnershipsA discussion on integrating the Repair Pal booking system with Yale platform and launching a DoorDash partnership highlights strategies for tying ad spend to transactions, expanding restaurant coverage, and driving incremental revenue.
Exploring Yelp's Strategic Partnerships and AI Initiatives in Food Delivery and Chatbot IntegrationThe dialogue highlights Yelp's expansion into food delivery through a partnership with DoorDash, increasing its restaurant footprint significantly. It also discusses the potential of AI in enhancing user experience, including the integration of third-party chatbots and advancements in generative commerce, showcasing Yelp's strategic moves in technology and commerce.
Yelp's AI-Driven Transformation: From Chatbots to Data LicensingYelp is leveraging AI to transform its services, introducing chatbots like Yelp Assistant for enhanced consumer interaction, AI-powered answering services for businesses, and expanding its data licensing business to offer APIs for tapping into Yelp content and technology, aiming for a transformative impact on the company's future.
Analyzing Restaurant Industry Recovery: Macro Factors and Cost PressuresThe dialogue explores the restaurant industry's recovery, emphasizing macroeconomic indicators and consumer dining trends as key recovery signals. It discusses the impact of inflation on input costs, particularly ingredients and labor, and how this affects restaurants' ability to pass on costs to consumers. The conversation suggests that as inflationary pressures ease, restaurants may improve margins, enabling better consumer advertising and signaling a potential industry recovery.
Exploring Revenue Potential and Customer Feedback on New Subscription ServicesA discussion unfolds around the anticipated revenue contribution from new subscription services, emphasizing positive early feedback and the vast untapped market. The dialogue highlights the potential for significant revenue growth through enhanced business services, particularly for SMBs and mid-market enterprises, indicating a promising expansion into lead management.
Understanding Accelerating Pricing Trends on Platforms and Their Impact on Advertiser ROIDiscusses factors behind accelerating average pricing trends, emphasizing dynamic auction systems optimizing ad budgets. Explains impact on advertiser ROI, noting higher CPCs and lower clicks as natural outcomes of budget deployment.
Navigating Advertiser Dynamics: Balancing Click Value, Lead Cost, and Market Pressures in 2025The dialogue discusses the fluctuating dynamics of click values and lead costs amidst macroeconomic pressures in 2025. It highlights advertisers' focus on cost per lead over cost per click, emphasizing the increased value of leads in a lower interest environment. The conversation underscores the platform's commitment to enhancing lead value efficiency, aligning with advertisers' inflation-adjusted pricing strategies, while addressing consumer cost-passing challenges, particularly in the restaurant sector.
Yelp Assistant's Early Rollout and Impact on Logged Out Users and EBITDA OutlookDiscussion on Yelp Assistant's early effects on logged out users and the company's EBITDA improvement outlook, highlighting a 400% year-over-year growth in projects and potential for wider exposure.
Efficient Capital Deployment and Innovation at YelpDiscussion on Yelp's efficient capital deployment, flat headcount commitment, and leveraging AI for innovation, highlighting disciplined capital allocation and focus on product development.
要点回答
Q：How has Yelp's transformation with AI continued to progress?
A：Yelp's transformation with AI has continued to accelerate, with the experience on Yelp being reconceived for both consumers and businesses.
Q：What were the financial results for Yelp's third quarter?
A：For Yelp's third quarter, the company delivered record net revenue of $376 million with a net income margin of 10%. Adjusted EBITDA was $98 million, representing a 26% margin and an increase of $13 million above the high end of the outlook range.
Q：What impact did Yelp's paid search initiative have in the third quarter?
A：Yelp's paid search initiative drove a 10% year-over-year increase in top revenue in the third quarter, with projects by Yelp assist increasing by nearly 400% year over year.
Q：What new features have been added to Yelp Assistant?
A：New features added to Yelp Assistant include an enhanced version that remembers important details and preferences from past projects, as well as the ability to answer questions about specific businesses using Yelp Assistant on R business pages.
Q：Who is Yelp's preferred food ordering and delivery partner?
A：Yelp is now partnering with DoorDash as its preferred food ordering and delivery provider, which expanded its food ordering network by approximately 200,000 new restaurants.
Q：What are the names of the new voice AI subscription products launched by Yelp?
A：The new voice AI subscription products launched by Yelp are Yelp hosts for restaurants and Yelp receptionist for services.
Q：What are Yelp's expectations for headcount and stock-based compensation expense?
A：Yelp expects headcount to be approximately flat year over year by the end of 2025, and to reduce stock-based compensation expense as a percentage of revenue. They aim to reach less than 8% by the end of this year and less than 6% by the end of 2027.
Q：What is Yelp's capital allocation strategy?
A：Yelp's capital allocation strategy consists of maintaining a healthy cash balance to fund operations, retaining balance sheet capacity for acquisitions, and returning capital to shareholders through share repurchases.
Q：What impact is the macroeconomic environment expected to have on the company's revenue in the fourth quarter?
A：The macroeconomic environment is expected to result in a decrease in net revenue from the third quarter to the fourth quarter, with net revenue anticipated to decrease from the third quarter.
Q：What is Yelp's position on the opportunities ahead and their investment priorities?
A：Yelp continues to believe in the opportunities ahead to create shareholder value over the long term, with a focus on investment in areas that will transform the business, particularly around AI.
Q：How is Yelp's revenue model showing signs of a more cautious spending environment among advertisers?
A：Yelp's revenue model is showing signs of a more cautious spending environment as advertisers have become more cautious in their spend, particularly in the fourth quarter. This is evidenced by the seasonal rise in revenue for the rno segment and the seasonal decline in services segment revenue, along with a step down in revenue on the rno site.
Q：What expansion opportunities does Yelp see for its data licensing products, especially with the rise of AI search platforms?
A：Yelp sees strong demand and expansion opportunities for its data licensing products, particularly in the area of AI search, due to the need for trusted content about SMBs which is critical for LOM-based players competing with Google. Yelp is excited about the data licensing side and the APIs it offers, and sees itself as a critical resource in the space.
Q：What is the impact of integrating the Repair Pal booking system and launching the DoorDash partnership on Yelp's ad spend and revenue?
A：The integration of the Repair Pal booking system and the launch of the DoorDash partnership have had a positive impact on Yelp's ad spend and revenue. The integration of Repair Pal has contributed to services revenue, and the DoorDash partnership expands Yelp's footprint in restaurant coverage and provides incremental revenue.
Q：How is the DoorDash partnership expected to affect the user experience on Yelp and what is the anticipated revenue impact?
A：The DoorDash partnership is anticipated to affect the user experience on Yelp by providing a direct integration into the DoorDash ordering model, thereby allowing users to transact directly on the platform. This is expected to result in a natural progression for consumers looking for food options, and Yelp is excited about the potential to consume everything on the platform, leading to significant revenue from the partnership.
Q：What is Yelp's approach to integrating AI into its platform and what are the potential directions for this strategy?
A：Yelp's approach to integrating AI into its platform is transformative, and it has already started down that path. The company is considering various vectors for the AI strategy, including enabling third-party chatbots within the Yelp app and expanding into genetic commerce and partnerships. Jeremy suggests that there are many ways to formulate this strategy, and Yelp is exploring potential directions for the AI strategy in the next year.
Q：What is the expanded role of Yelp Assistant mentioned in the transcript?
A：The expanded role of Yelp Assistant is to now live on business pages, where it can provide answers to a variety of queries about the business categories and support businesses across various leads by interacting with consumers through a chat interface.
Q：How are Yelp's new products, Yelp Host and Yelp Receptionist, designed to assist businesses?
A：Yelp Host and Yelp Receptionist are designed as answering services powered by AI technology, which helps businesses save time and increase value from their front-end services. They can be used across multiple leads, including phone calls, and integrate with Google and other platforms. Additionally, they can be used to streamline reservation and waitlist services for restaurants.
Q：Why is the data licensing business important for Yelp?
A：The data licensing business is important for Yelp as it creates monetization opportunities for others by offering access to Yelp's content and AI technology via APIs. This can lead to a variety of ways for Yelp to invest and leverage AI, contributing to the company's transformation over time.
Q：What macro factors should be watched to predict a potential recovery in the restaurant industry?
A：To predict a potential recovery in the restaurant industry, one should watch for indicators such as more frequent dining out, inflation trends affecting consumer spending power, and the pressure on input costs for restaurants. Additionally, the ability of restaurants to advertise and the general macroeconomic environment are important factors to monitor.
Q：How is the restaurant industry expected to react to input cost pressures?
A：The restaurant industry is expected to react to input cost pressures by continuing to face challenges in passing on these costs to consumers. However, as inflation increases and then decreases, restaurants may see an opportunity to generate more margins, allowing them to advertise to consumers and improve their financial position.
Q：What is the potential scale of the opportunity for Yelp's new products and how is the early adoption and feedback?
A：The potential scale for Yelp's new products is significant, with over 500,000 Yelp advertisers and many businesses without an existing relationship with Yelp that could benefit from an answering service. Yelp has received positive feedback and is seeing the products perform well in the market. The company is excited about the opportunities to generate incremental revenue and to expand into lead management.
Q：What are the factors behind the accelerating pace of average pricing on the Yelp platform?
A：The accelerating pace of average pricing on the Yelp platform is primarily due to the dynamic ad auction system, where the algorithm determines the optimal cost per click based on various parameters. The year-over-year increase in average pricing is influenced by budget deployment, cost per lead, and the macroeconomic environment.
Q：How is Yelp managing the expectation of cost per lead for advertisers?
A：Yelp is managing the expectation of cost per lead for advertisers by focusing on delivering improved value per lead and not solely on the cost per click. Advertisers are willing to pay more for leads in an environment with fewer visit intentions, and Yelp aims to continue increasing value for these leads. The company is also attentive to the cost per click to ensure it remains competitive with other platforms.
Q：What does the new release of Yelp Assistant for logged out users indicate?
A：The new release of Yelp Assistant for logged out users is in an early phase, but preliminary data indicates strong performance with a 400% year-over-year increase in projects. Yelp is monitoring the effects closely and will provide updates as more data becomes available.
Q：What efficiencies are driving the improved EBITDA outlook?
A：Efficiencies that are driving the improved EBITDA outlook include capital deployment and cost management, with a commitment to flat headcount in 2025. Yelp continues to increase leverage across the business and is investing in AI-powered products and greenfield projects, which is reflected in the company's investment profile. These efforts, combined with capital discipline, are contributing to the positive EBITDA outlook.
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