EXHIBIT 99.1

Yelp Reports Second Quarter 2020 Financial Results

Second Quarter 2020 Net Revenue of $169 Million
Net Loss of $24 Million
Adjusted EBITDA of $11 Million
As of June 30, 2020, the Company had $526 Million of Cash and Cash Equivalents

SAN FRANCISCO--(BUSINESS WIRE)--August 6, 2020--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the second quarter ended June 30, 2020 in the Q2 2020 Shareholder Letter available on its Investor Relations website at www.yelp-ir.com.
“Our second quarter results demonstrate the resilience of our business, in spite of the significant headwinds faced by local economies following the emergence of COVID-19,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “Due to our disciplined actions on expenses, coupled with solid revenue performance, we added $35 million of Cash and cash equivalents to our Balance sheet. Though the pace of economic recovery remains uncertain and will not be uniform, we have confidence in our ability to execute in this environment and in the strength of our diversified business.”
Quarterly Conference Call
Yelp will host a live Q&A session today at 2:00 p.m. Pacific Time to discuss the second quarter 2020 financial results. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at www.yelp-ir.com. A replay of the webcast will be available at the same website.
About Yelp
Yelp Inc. (www.yelp.com) connects people with great local businesses. With unmatched local business information, photos, and review content, Yelp provides a one-stop local platform for consumers to discover, connect, and transact with local businesses of all sizes by making it easy to request a quote, join a waitlist, and make a reservation, appointment, or purchase. Yelp was founded in San Francisco in July 2004.

Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.

Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including Yelp’s ability to execute in the current environment as well as the strength and resilience of its business, that are based on its current expectations, forecasts, and assumptions that involve risks and uncertainties.
Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:

the duration and magnitude of the COVID-19 pandemic and measures implemented to help control its spread;
The pace of reopening and recovery by local economies;



Yelp’s ability to maintain and expand its base of advertisers, particularly as many businesses reduce spending on advertising in connection with COVID-19;
Yelp’s limited operating history in an evolving industry;
Yelp’s ability to generate sufficient revenue to regain profitability, particularly in light of the ongoing impact of COVID-19 and Yelp’s relief initiatives; and
Yelp’s ability to generate and maintain sufficient high-quality content from its users.

Investor Relations Contact
Kate Krieger
ir@yelp.com




YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

June 30,
2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents$525,693  $170,281  
Short-term marketable securities—  242,000  
Accounts receivable, net
72,025  106,832  
Prepaid expenses and other current assets19,675  14,196  
Total current assets617,393  533,309  
Long-term marketable securities—  53,499  
Property, equipment and software, net106,732  110,949  
Operating lease right-of-use assets188,266  197,866  
Goodwill104,796  104,589  
Intangibles, net8,733  10,082  
Restricted cash910  22,037  
Other non-current assets46,655  38,369  
Total assets$1,073,485  $1,070,700  
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$60,206  $72,333  
Operating lease liabilities — current56,406  57,507  
Deferred revenue3,918  4,315  
Total current liabilities120,530  134,155  
Operating lease liabilities — long-term164,537  174,756  
Other long-term liabilities
7,098  6,798  
Total liabilities292,165  315,709  
Stockholders' equity:
Common stock
—  —  
Additional paid-in capital1,325,745  1,259,803  
Accumulated other comprehensive loss(11,845) (11,759) 
Accumulated deficit(532,580) (493,053) 
Total stockholders' equity781,320  754,991  
Total liabilities and stockholders' equity$1,073,485  $1,070,700  






YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Net revenue$169,030  $246,955  $418,931  $482,897  
Costs and expenses:
Cost of revenue (1)
11,825  14,975  28,672  29,240  
Sales and marketing (1)
96,289  122,045  233,586  246,361  
Product development (1)
53,969  54,566  121,082  112,641  
General and administrative (1)
26,402  30,932  69,938  62,224  
Depreciation and amortization12,582  12,240  24,940  24,116  
Restructuring3,312  —  3,312  —  
Total costs and expenses204,379  234,758  481,530  474,582  
(Loss) income from operations(35,349) 12,197  (62,599) 8,315  
Other income, net495  3,891  2,878  8,582  
(Loss) income before income taxes(34,854) 16,088  (59,721) 16,897  
(Benefit from) provision for income taxes(10,864) 3,785  (20,228) 3,229  
Net (loss) income attributable to common stockholders$(23,990) $12,303  $(39,493) $13,668  
Net (loss) income per share attributable to common stockholders
Basic$(0.33) $0.16  $(0.55) $0.17  
Diluted$(0.33) $0.16  $(0.55) $0.17  
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders
Basic72,413  75,601  71,980  78,620  
Diluted72,413  78,530  71,980  81,742  
(1) Includes stock-based compensation expense as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Cost of revenue$943  $1,118  $1,986  $2,361  
Sales and marketing7,302  7,774  14,998  15,461  
Product development16,827  15,247  34,582  31,322  
General and administrative5,513  6,313  10,769  12,626  
Total stock-based compensation$30,585  $30,452  $62,335  $61,770  




YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Six Months Ended
June 30,
20202019
Operating Activities
Net (loss) income attributable to common stockholders$(39,493) $13,668  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization24,940  24,116  
Provision for doubtful accounts21,897  8,716  
Stock-based compensation62,335  61,770  
Noncash lease cost20,984  21,433  
Deferred income taxes(14,263) (1,912) 
Other adjustments, net876  (1,632) 
Changes in operating assets and liabilities:
Accounts receivable12,910  (17,143) 
Prepaid expenses and other assets604  (5,335) 
Operating lease liabilities(22,520) (20,299) 
Accounts payable, accrued liabilities and other liabilities(11,021) 14,464  
Net cash provided by operating activities57,249  97,846  
Investing Activities
Sales and maturities of marketable securities — available-for-sale290,395  —  
Purchases of marketable securities — held-to-maturity(87,438) (289,100) 
Maturities of marketable securities — held-to-maturity93,200  397,197  
Release of escrow deposit—  28,750  
Purchases of property, equipment and software(17,004) (19,214) 
Other investing activities328  276  
Net cash provided by investing activities279,481  117,909  
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans10,808  11,198  
Repurchases of common stock—  (397,613) 
Taxes paid related to the net share settlement of equity awards(12,557) (22,605) 
Other financing activities(356) —  
Net cash used in financing activities(2,105) (409,020) 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(340) (24) 
Change in cash, cash equivalents and restricted cash334,285  (193,289) 
Cash, cash equivalents and restricted cash — Beginning of period192,318  354,835  
Cash, cash equivalents and restricted cash — End of period$526,603  $161,546  




Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, each of which the Securities and Exchange Commission has defined as a "non-GAAP financial measure."

We define EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; and depreciation and amortization.

We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as restructuring costs. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are key measures used by Yelp management and the board of directors to understand and evaluate core operating performance and trends, to prepare and approve Yelp’s annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and Adjusted EBITDA can provide a useful measure for period-to-period comparisons of Yelp’s primary business operations. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of Yelp’s financial results as reported under GAAP. Some of these limitations are:

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, Yelp's working capital needs;
EBITDA and Adjusted EBITDA do not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as restructuring costs; and
other companies, including those in Yelp’s industry, may calculate EBITDA and Adjusted EBITDA differently, which reduces their usefulness as comparative measures.
Because of these limitations, you should consider EBITDA, Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, net income (loss) and Yelp’s other GAAP results.





The following is a reconciliation of net income to EBITDA and Adjusted EBITDA (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA:
Net (loss) income$(23,990) $12,303  $(39,493) $13,668  
(Benefit from) provision for income taxes(10,864) 3,785  (20,228) 3,229  
Other income, net(495) (3,891) (2,878) (8,582) 
Depreciation and amortization12,582  12,240  24,940  24,116  
EBITDA(22,767) 24,437  (37,659) 32,431  
Stock-based compensation30,585  30,452  62,335  61,770  
Restructuring3,312  —  3,312  —  
Adjusted EBITDA$11,130  $54,889  $27,988  $94,201  
Net revenue$169,030  $246,955  $418,931  $482,897  
Adjusted EBITDA margin%22 %%20 %


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