(YELP) Yelp - Ratings and Ratios

Yelp Inc. is a leading platform that bridges the gap between consumers and local businesses across the U.S. and internationally. The platform spans a wide array of categories, from restaurants and shopping to beauty, fitness, health, and more niche areas like auto services, pets, and real estate. This diversity makes Yelp a go-to destination for users seeking trusted reviews and recommendations.

The company’s core revenue engine is its advertising business, offering both free and paid solutions. For businesses, Yelp provides cost-per-click ads, multi-location ad products, and tools to target high-intent audiences. These ad solutions are complemented by business listing page products, which enhance visibility and engagement for local establishments. Yelp also delivers value through its subscription-based services, such as Yelp Guest Manager, a suite of front-of-house tools designed for restaurants and similar venues. This includes online reservations, waitlist management, and seating optimization, all of which streamline operations and improve customer experience.

Yelp’s offerings extend beyond advertising with initiatives like the Yelp Knowledge program, which equips business owners with local analytics and insights derived from historical data. Yelp Fusion provides free and paid API access to its data, enabling third-party developers and enterprises to integrate Yelp’s content into their own platforms. The company also licenses its content to third parties and partners with data providers to manage and update business listings on behalf of businesses.

Distribution is a key strength for Yelp. The company sells its products directly through a dedicated sales force, indirectly through partners, and online via its website and business app. Strategic partnerships, such as its collaboration with Grubhub for food ordering and delivery, further enhance its ecosystem. Yelp’s ability to integrate with major platforms underscores its role as a critical infrastructure player in the local business space.

Yelp Inc., originally founded in 2004 and renamed in 2012, is headquartered in San Francisco. With a market cap of $2.6 billion, the company operates with a P/E ratio of 24.35 and a forward P/E of 14.75, signaling expectations for future growth. Its price-to-book ratio of 3.60 and price-to-sales ratio of 1.89 reflect a balance between valuation and revenue generation. These metrics, combined with its diversified revenue streams and strategic partnerships, position Yelp as a compelling investment opportunity in the interactive media and services sector.