Yelp Inc. shares tumbled in extended trading Wednesday after the local-reviews company forecast fourth-quarter sales that fell short of analysts’ estimates.
The San Francisco-based company said in a statement that revenue would be $107 million to $108 million for the current period. That was below the $111 million estimated on average by analysts, according to data compiled by Bloomberg.
At about 5:30 p.m. in New York, Yelp shares were down 13 percent at $61, after falling 1.5 percent to end the regular session at $70.23.
For the third quarter, Yelp posted revenue of $102.5 million, up from $61.2 million a year earlier. Net income was $3.6 million, compared with a net loss of $2.3 million a year ago.
Yelp, which provides local user reviews of everything from restaurants to hairdressers, is facing increased competition for local online advertising. To rev up growth, the company has been expanding internationally into markets including Chile and Hong Kong.
Yelp said that it continues to engage users. Consumers contributed 5.3 million reviews, the biggest quarterly increase to date, with about 45 percent of new reviews coming from mobile devices, the company said.
“As we look to the future, we’ll continue to engage our community, develop new ways to show businesses the value Yelp provides and expand and deepen our geographic footprint,” Chief Executive Officer Jeremy Stoppelman said in the statement.
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