Yelp (YELP) Investors Buy in Following Narrower-than-Expected Q3 Loss, Solid Operating Metrics

Yelp (NYSE: YELP) shares are ramping higher following solid Q3 results, but flat guidance.

The company reported a Q3 loss of 3 cents per share, while the consensus was calling for a wider loss of 9 cents per share. Revenue of $143.6 million topped expectations by 1.6 percent. The company noted that cumulative reviews grew 35 percent year over year to approximately 90 million and App Unique Devices grew 39 percent year over year to approximately 20 million on a monthly average basis.

Transactions revenue totaled $12.0 million, compared to $1.3 million in the third quarter of 2014, primarily due to the acquisition of Eat24 in the first quarter of 2015. In the third quarter, Yelp Platform transactions increased approximately 170% year over year. Yelp launched multiple features to enhance the transaction experience on Yelp, such as the ability to order food or make reservations directly from search results, which resulted in more than a 10% lift in Yelp Platform transactions in the month following the change.

Yelp said it sees FY2015 revenue of $545.5 - $551.5 million, versus the consensus of $545.86 million.

Yelp is up over 6 percent in late trading.

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