Yelpâ€™s CFO to Step Down Towards the End of this Year; The Company Posts Lower than Expected loss
San Francisco based Yelp Inc.'s projected revenue to reach close to $1 billion in 2017 appears to have taken a detour. On Monday, the Q4 financial results of the company surfaced almost three hours before they were expected and the good news was that the losses were smaller than expectations.
Â However, in spite of the better than expected performance, shares of the company dropped eleven percent to their lowest closing price noted since 2012. It all resulted from a broader selloff in the technology industry teamed with a frail adjusted EBITDA forecast. The earlier than expected financial reports erroneously also lead to in volatility in the company's shares.
Without elaborating much, the company also announced that its Chief Financial Officer, Rob Krolik will be leaving later in the year till December 5, or a time till his replacement is found. Krolik joined the company in 2011.
In the Q4, revenue of Yelp scaled approximately forty percent surpassing the analysts' estimates mainly gaining from its advertising business and a spike in mobile usage.
The company is making an effort to extend its business outside the US and also diversify into services that include event management, payments and restaurant bookings in order to stay in line with increasing competition.