Top 5 High Dividend Companies To Own For 2015: Yelp Inc (YELP)
Yelp Inc., incorporated on September 03, 2004, connects people with great local businesses. Its users have contributed a total of approximately 36.0 million cumulative reviews of almost every type of local business, from restaurants, boutiques and salons to dentists, mechanics and plumbers. Its platform provides local businesses with a range of free and paid services, which help them to engage with consumers at moment when they are deciding where to spend their money. The Company generates revenue from local advertising, brand advertising and other services. As of December 31, 2012, the Company was active in 53 Yelp markets in the United States and 44 Yelp markets internationally. Effective July 18, 2013, Yelp Inc acquired SeatMe Inc, which is a developer of restaurant and nightlife categories reservation applications.
Local Business
The Company enables businesses to create a free online business account and claim the page for each of their busine ss locations. Business representatives can verify their affiliation with the business through an automated telephone verification process, which requires that they be reachable at the phone number, which is publicly displayed for their business listing on its platform. With their free business accounts, businesses can view business trends, message customers, update information and offer Yelp Deals. Its listing solution eliminates search advertising from the businesses' profile pages and allows them to incorporate a video clip or photo slide show on the pages. It allows local businesses to promote themselves as a sponsored search result on its platform or on related business pages.
The Company's Yelp Deals product allows local business owners to create promotional discounted deals for their products and services, which are marketed to consumers through! its platform. Yelp Deals have a fee structure based solely on transaction volume with no upfront costs, and it earns a fee based on the discounted price of each deal so! ld. It processes all customer payments and remits to the business the revenue share of any Yelp Deal purchased. It offers both e-mail deals, which are focused on demand generation and deals on its platform that are focused on demand fulfillment where businesses can target intent-driven consumers who are specifically searching for a product or service on its platform.
The Company's Gift Certificates product allows local business owners to sell full price gift certificates directly to customers through their business profile page. The business chooses the price points to offer, and the buyer may purchase a Gift Certificate in one of those amounts. The Company earns a fee based on the amount of the Gift Certificate sold. The Company processes all consumer payments and remit to the business the revenue share of any Gift Certificate purchased.
National/Brand Advertisers
The Company offers its advertising solution for national brands that w ant to improve their local presence. These solutions consist of search and display ads (both graphic and text) on its Website, which are typically sold to advertisers on a per-impression basis. Its national advertisers include brands in the automobile, financial services, logistics, consumer goods and health and fitness industries.
Transaction Partners
The Company's partnership, through a written agreement, with OpenTable provides consumers the ability to reserve seats directly on the business listing pages of restaurants, which participate in OpenTable's network. Its partnership, through a written agreement, with Orbitz allows consumers to book rooms directly on the business listing pages of hotels, which affiliate with Orbitz.
The Company competes with Google, Yahoo! and Bing.
Advisors' Opinion:- [By Pau! l R. La Monica]
Shares are pretty expensive too, trading at nearly 40 times 2015 earnings forecasts. And investors can be unkind to Wall Street darlings who don't live up to the hype. Just look at Netflix (NFLX, Tech30), Amazon (AMZN, Tech30) and Yelp (YELP).
- [By WWW.DAILYFINANCE.COM]
www.yelp.com Shares of Yelp (YELP) opened sharply lower on Thursday. The website that prides itself on user-submitted reviews of local establishments posted blowout quarterly results, but any good sentiment there was washed out by a weak outlook for the current quarter. It was a strong third quarter. Revenue soared 67 percent over the prior year's third quarter to hit $102.5 million. Analysts were only holding out for $99 million. Yelp's adjusted profit of 5 cents a share was also comfortably ahead of expectations. The pitfall in the report came from Yelp only targeting $107 million to $108 million in revenue for the holiday quarter. Top-line growth is decelerating. Most companies would kill for the 52 percent in year-over-year growth that Yelp is modeling, but Wall Street was forecasting 57 percent growth. When you're a market darling trading at a lofty multiple -- and Yelp was fetching a whopping 175 times next year's projected profit -- a miss can be brutal. Sometimes 52 percent growth isn't enough. Cry for Yelp Wall Street wasn't impressed. Pacific Crest Securities, Barclays Capital, and JMP Securities all lowered their price targets on Yelp. Stifel Nicolaus downgraded the stock. You don't win friends among the Wall Street pros following you when you make them look like chumps. Where does Yelp go from here? There's no denying that Yelp is succeeding in getting merchants to pay more for enhanced access to the site's growing user base. However, it has to be a little problematic to see revenue -- again, up 67 percent over the past year -- grow a lot faster than its user base. Yelp closed out the quarter with an average of 139 million unique monthly visitors, up just 19 percent ov! er the pa! st year. Users are contributing more reviews than they used to, but can the faster-growing base of active advertisers justify the marketing expenditures if the audience growth doesn't keep up? Yelp may also have a problem with Google (GOOG). The world's largest search e
source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-high-dividend-companies-to-own-for-2015-3.html
No comments:
Post a Comment