Yelp’s Revenue Breakdown by Sources (2016-2023)

This statistic highlights Yelp’s Revenue Breakdown by Sources, reported on a quarterly basis from Q1 2016 onwards.

Yelp is a public listed company headquartered in San Francisco, California. The company markets, hosts, and develops the Yelp.com website and the recently made Yelp mobile app, which is purposed to publish crowd-sourced reviews about different businesses. Russel Simmons and Jeremy Stoppelman, two former PayPal employees, founded Yelp in 2004. Yelp grew usage wise and raised several rounds of funding in the following years. From 2009 to 2012, Yelp successfully expanded throughout Europe and Asia. Yelp became profitable two years later after it became a public listed company in March 2012. As of Q2 FY 2019, Yelp reported having a monthly average of 76.7 million unique visitors via its mobile website and 61.8 million unique visitors via a desktop computer.

Yelp’s main revenue streams are Advertising, which comprises of 97% of its revenue; Transactions, which are different devised tools built by Yelp to facilitate the smooth transactions between customers and businesses, consists of 1% of total revenue; and other services, which comprises of 2% of total revenue.

• The year 2016

In this Yelp’s Revenue Sources statistic, we can see that Yelp’s Advertising revenue rose to $143.05 million during Q1 as the local advertising accounts grew by 34% YoY to 121K. Transactions revenue totaled to $14.5 million, primarily due to the acquisition of Eat24 in the Q1 of 2015, while Other revenue declined to $1.07 million. The growth was consistent in further quarters. In Q1, Advertising revenue rise to $176.55 million as local advertising accounts grew by 24% YoY to approximately 138K. Transactions revenue totaled to $16.6 million as bookings through Yelp Platform and Yelp Eat24 recorded an increase of more than 40% YoY. Other revenue amounted to $7.1 million, which grew by 4% compared to Q4 2015.

• The year 2017

Advertising revenue totaled to $177.90 million, grew by 24% compared in Q1 of 2016. Transactions revenue totaled to $18.07 million, representing a 25% growth YoY, while Other services revenue totaled to $2.21 million, representing a massive growth of 107%. Overall, the revenue witnessed a slight drop in Q4. Advertising revenue totaled to $208.4 million, grew by 18% YoY, while Other services revenue reported a substantial increase in Q2 onwards primarily due to revenue from Nowait and Yelp WiFi. But, after a consistent growth, Transactions revenue dropped due to the sale of Eat24, which had a significant portion in Transactions revenue.

• The year 2018

In Q1, Advertising revenue was $214.04 million in Q1 2018, grew by 20% YoY, driven by firm sales productivity and an increase in the size of the local salesforce. Transactions revenue dropped to $3.84 million reflects the absence of revenue from Eat24, sold in October 2017. Other services revenue rose due to the growth of Yelp Reservations a year ago. With consistent growth over subsequent quarters, Advertising revenue tolled to $235 million in Q4 2018, a 12% increase YoY, driven due to the transition of the sale of non-term advertising contracts to local advertisers. Transactions revenue-again decreased, reflecting the sale of Eat24 to Grubhub in the year 2017, while Other services revenue grew by 23% due to efficiencies gained after combining Yelp Reservations and Yelp Waitlist sales and support teams.

• The year 2019

Yelp Inc. again regained the overall consistency during the year. In Q1, Advertising revenue was $227.03 million in Q1 2019, a 6% increase YoY, due to the rise in the advertising segment. Transactions revenue was $3.31 million due to transition services rendered in conjunction with the sale of Eat24 to Grubhub. While, due to an increase in the number of restaurant customers, Other services revenue was $5.6 million, which grew by 8% primarily. After consistent growth during the year, Advertising revenue tolled to $258.95 million in Q4 2019, driven by growth in the number of higher advertising budgets from Multi-location customers and increased paying advertising locations. In Q4, Transaction revenue was down by 12% from the Q4 2018 due to declines in fees earned from Grubhub for processing credit card transactions related to Grubhub orders that originated on the platform.  Other services revenue increased due to growth in Yelp Waitlist and Yelp Reservations subscription revenue.

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