Yelp Q3 2013 Investor Deck_FINAL

8/13/2019 Yelp Q3 2013 Investor Deck_FINAL

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Investor Deck

Q3 2013


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Safe Harbor

FORWARD-LOOKING STATEMENTS

These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements ofhistorical facts contained in these slides and the accompanying oral presentation, including statements regarding Yelp Inc.s (Yelpor the Company) future operations, future financial position, future revenue, projected growth and expenses, opportunities,prospects, the effects of growth in use of mobile devices and plans and objectives of management are forward-looking statements.In some cases, you can identify forward-looking statements by terms such as believe, may, will, estimate, forecast,guidance, continue, anticipate, intend, could, would, project, plan, expect or the negative or plural of thesewords or similar expressions. The Company has based these forward-looking statements largely on its estimates of its financial resultsand its current expectations and projections about future events and financial trends that it believes may affect its financialcondition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs.

These forward looking statements are subject to a number of risks, uncertainties and assumptions, including the fact that we have a

short operating history in an evolving and competitive industry, that our growth rate may not be sustainable, that we rely on traffic toour website from search engines l ike Google, Yahoo! and Bing, our ability to generate and maintain sufficient high quality contentfrom our users, our ability to monetize our mobile app effectively, our ability to maintain, protect and enhance our brand, possiblenegative publicity about us, our ability to manage acquisitions of new businesses, solutions and technologies, that growth in use ofour mobile app and mobile website as substitutes for our website on personal computers, the efficacy of our technology filter, ourability to maintain and expand our base of advertisers and our ability to expand effectively into new markets, includinginternationally. These risks and uncertainties may also include those described in the Companys most recent Form 10-Q or 10-K filedwith the Securities and Exchange Commission.

New risks emerge from time to time. It is not possible for Company management to predict all risks, nor can the Company assess theimpact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differmaterially from those contained in any forward-looking statements the Company may make. In light of these risks, uncertainties and

assumptions, the forward-

looking events and circumstances discussed in these slides and the accompanying oral presentation maynot occur and actual results could differ materially and adversely from those anticipated or implied in the forward-lookingstatements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believesthat the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the futureresults, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved oroccur. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of theforward-looking statements. Any forward-looking statement speaks only as of its date. Except as required by law, the Companyundertakes no obligation to update publicly any forward-looking statements for any reason after the date of this presentation, toconform these statements to actual results or to changes in the Companys expectations.


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Mission


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Positive Feedback Loop

Revenue

Community

ReviewsConsumerTraffic


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1

10

100

1000

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Growth in Reviews

relative to

CM Start

Years since CM Start

Review Growth Relative to Community Manager Start

International

Domestic

bubble size = adult metro population

Markets Underway

Note: Includes reviews from Integrated Qype markets (Ireland, Italy, Spain, France and UK); growth in reviews and years since CM start updated as of 9/30/13Source: N. American and Australian city populations taken from government census data; European city populations taken from Eurostat.

log

scale


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US + Western Europe + Canada + AU

53M

Worldwide

73M

Yelp: 1.3M*

Local Businesses

* Number of cumulative claimed local business locations as of Sep 30, 2013Sources: IDC worldwide SMBs as of 2009; Australian Government, Department of Innovation, Industry, Science and Research as of June 2009; Canadian Small BusinessReport as of 2010; US Census Bureau as of 2008; BIA Kelsey for 2013 projected local ad spend

Large Market Opportunity

Local Ad Spend

Total Online and Offline

$133B

Online

$26B


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Key Focus Areas

Mobile International Expansion Closing the Loop


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Mobile


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Mobile Amplifies the Local Opportunity

* App usage based on number of unique devices on a monthly average basis in Q3 2013** In Q3 2013

*** Phone calls are defined as clicks to calls from the app, directions defined as clicks for directions from the app; based on Q3 2013Note: Metrics above do not include Qype searches

0%

10%

20%

30%

40%

50%

60%

70%

0

2

4

6

8

10

12

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

App Usage** (M) % Searches on Mobile

0

5

10

15

20

25

30

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Phone Calls Directions

Millions

Millions

11.2M unique devices using the app*62% searches coming from mobile**

27M clicks for directions***19M calls to businesses***


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Continued Mobile Development

46% of Ad Impressions25% of New ReviewsComing from Mobile*

* As of the end of Q3 2013

Note: Ad impressions data for Q3 2013

Nearby Feature withMore Personalization


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International Expansion


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New Market Launches

As of Sep 30, 2013

! 111 total markets (51 intl)! 5 new markets in Q313


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Rapid International Growth

Q3'12 Q3'13

3.6M

Cumulative Reviews*

1.6M

129%y/y

Q3'12 Q3'13

21.5M

Unique Visitors**

10.8M

98%

y/y

*International review metrics include integrated Qype markets: Ireland, Italy, Spain, Brazil, UK (~375k) and France (~600k)**Source: Google Analytics, average number of monthly unique visitors over a given three-month period

Q3'12 Q3'13

Revenue

$3.0M

$0.4M

680%y/y


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Closing the Loop


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Compelling ROI

*How long after you visit Yelp do you typically make a purchase from a business you found on Yelp? Source: Nielsen Survey fielded 3/29/13-4/15/13**Source: Boston Consulting Group Survey conducted Nov 2012

When do Yelp users buy?*$23,000

Average Annual Revenue Lift fromAdvertising on Yelp Compared to

$8,000 for Non-Advertisers**


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Dashboard for Businesses to Measure Success


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Yelp Platform: From Discovery to Transaction


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Plentiful Opportunities


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Q3'12 Q3'13

Compelling Metrics*

Active Local Biz Accts1

Q3'12 Q3'13Q3'12 Q3'13

47.3M117M

57.2K

Cumulative Reviews Unique Visitors*

33.3M 84M

35.5K

42%y/y

41%y/y

61%

y/y

Note that the review and active local business accounts metrics for Q3 2013 include integrated Qype markets: Ireland, Italy, Spain, France, the UK and Brazil1 number of active local business accounts from which we recognized revenue during the period

* Per Google Analytics, average number of monthly unique visitors over a given three-month period


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Growth Across All Sources of Revenue

$0

$25

$50

$75

$100

$125

$150

2009 2010 2011 2012 Q3'12 Q3'13

Other Brand Local $137.6M

$36.4M

$61.2M

($M)

$25.8M

$47.7M

$83.3M


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Significant Operating Leverage

($1.0)

$1.6$2.2 $1.8

$3.2

$7.8 $8.1

-3%

-2%

0%

2%

3%

5%

6%

8%

10%

11%

13%

-$2

-$1

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Adj. EBITDA ($M) % Adj. EBITDA Margin

Note: See Appendix for reconciliation to GAAP Net Loss for the periods presented

Adj.EBITDA($

M)

Adj.EBITDAMar

gin%


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U.S. Market CohortNumber of

Yelp Markets (1)

AverageCumulative

Reviews

As of Sep 30, 2013(2)

Year-Over-YearGrowth inAverage

CumulativeReviews (3)

Average LocalAdvertising

Revenue Q3 2013

(4)

Year-Over-YearGrowth in

Average Local

AdvertisingRevenue (5)

2005 2006Cohort

6 3,396 35% $3,832 57%

2007 2008Cohort

14 715 35% $954 74%

2009 2010Cohort

18 221 54% $213 99%

Cohort Analysis Local Revenue

(1) A Yelp market is defined as a city or region in which we have hired a CommunityManager.

(2) Average cumulative reviews is defined as the total cumulative reviews of the cohortas of September 30, 2013 (in thousands) divided by the number of markets in the cohort.(3) Year-over-year growth in average cumulative reviews compares the average

cumulative reviews as of September 30, 2013 with that of September 30, 2012.

(4) Average local advertising revenue is defined as the total local advertisingrevenue from businesses in the cohort over the three-month period ended

September 30, 2013 (in thousands) divided by the number of markets in thecohort.(5) Year-over-year growth in average local advertising revenue compares the

local advertising revenue in the three-month period ended September 30,2013 with that of the same period in 2012.


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Appendix


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Appendix: Adjusted EBITDA Reconciliation

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)-./012- 45678) 59:-;2

!"# %&'()"*+,(--. +/012. + /314. + /314. + /516. +/7017. + /812. + /410. + /316.

9 :;< = >#?"@ A


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Appendix: Wide Breadth of Business Categories

Distribution of Reviewed Businesses

Travel & Hotel

4%

Nightlife

4%Auto

4%

Health

6%

Beauty & Fitness

9%Home & Local Services

11%

Restaurants

20%

Shopping

23%

Other

12%

Arts, Entertainment &Events

7%

Note: As of Sep 30, 2013; Includes some businesses that have only received reviews that have been filtered or have been removed


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Appendix: Case StudyPhiladelphia

Reviews by Metro / Philadelphia (Cumulative)Thousands

Revenue(in thousands)

$2,250

$1,750

$750

$0

*Forecasted based on Q3 2013

!

"!!

#!!

$!!

%!!

&!!

'!!

#!!' #!!( #!!) #!!* #!"! #!"" #!"# #!"$ 2013*2006 2007 2008 2009 2010 2011 2012


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Appendix: Local Advertising Example

Yelp Q3 2013 Investor Deck_FINAL

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