The YELP Incorporation has managed to see an increase in shares, as much as 25 percent, during this week alone due to a report that recently showed advertisers have doubled within the incorporation. Because of the report, a large number of individuals decided to take advantage of the mobile websites that the incorporation uses and therefore, the company ended up receiving results within the second quarter that were better than first expected. With the positive second quarter results, Yelp was easily able to ease those concerns that the company was once dealing with, especially since the share prices were continuing to fall. Yelp has used its large network of different businesses and their profiles, along with the reviews left for the different local businesses, as a way of receiving payments from businesses who are interested in getting more customers to come inside and shop around. In order to earn a profit, the company asks that the businesses pay an extra fee for better profiles, the type of profiles that attract customers. The company also sells specific advertisements that are displayed on the website so that businesses can purchase advertisements and have plenty of consumers view these types of advertisements.
Investors have recently gotten more excited over Yelp, specifically because of the increased use of mobile applications, which have been gaining popularity in recent years, especially with the large number of people who rely on mobile applications on a daily basis. The mobile applications that are provided by Yelp are not currently displaying advertisements but they are still a good move for businesses that are looking for self-promotion. The chief executive of the company, Jeremy Stoppelman, has said, “We believe that the migration towards mobile ultimately leads to greater monetization.” He also said, “When you consider that 40% of our searches come from mobile apps, there is quite a bit of un-monetized mobile traffic that we expect to unlock in the near future.” Stoppelman has also announced that the company is planning on monetizing the mobile applications that are available sometime in the near future but did not provide a certain time or date just yet.
In the meantime, the revenue that Yelp has earned for 2012 has definitely grown, so much so that it has grown by around 63%. Shares for the company have also increased by a whopping 20%. The operating performance of the company has also been quite well, especially when compared to the results that several other companies have had to deal with lately, including Facebook and Zynga, both of which have managed to see a slowdown in the amount of revenue growth.Shares for Yelp Continue to Grow by Harrison Barnes