Yelp Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable revenue growth but a decline in net income for the quarter compared to the previous year. The company achieved net revenue of $360.3 million for Q3 2024, a 4% increase from $345.1 million in Q3 2023. For the nine months, net revenue reached $1.05 billion, up 6% from $994.7 million in the same period last year. The growth was driven by an 11% increase in advertising revenue from Services, which accounted for 66% of total advertising revenue.
Despite the revenue growth, net income attributable to common stockholders for Q3 2024 was $38.4 million, a significant decrease of 34% from $58.2 million in Q3 2023. However, for the nine months ended September 30, 2024, net income increased by 26% to $90.6 million, compared to $71.8 million in the prior year. The decline in quarterly net income was attributed to increased expenses, including a $5.9 million impairment charge related to subleases.
Total costs and expenses for Q3 2024 were $313.7 million, up from $303.2 million in Q3 2023. The increase in expenses was primarily due to higher sales and marketing costs, which rose by $5 million in the quarter. General and administrative expenses also increased due to the aforementioned impairment charges.
Yelp's cash and cash equivalents as of September 30, 2024, were $261.6 million, down from $313.9 million at the end of 2023. The company reported total assets of $980.2 million and total liabilities of $240.7 million, resulting in stockholders' equity of $739.5 million.
In terms of strategic developments, Yelp announced a merger agreement with RepairPal, Inc. on November 6, 2024, which will see RepairPal become a wholly owned subsidiary for approximately $80 million in cash. This acquisition is expected to enhance Yelp's service offerings in the auto services advertising vertical.
Yelp's stock repurchase program remains active, with $367.2 million available for repurchase as of November 1, 2024. During the nine months ended September 30, 2024, the company repurchased 4.98 million shares for a total cost of $188.4 million. The company continues to focus on maintaining a strong financial position while investing in growth opportunities.
About YELP INC
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