Yelp saw its stock plummet 28% to $US25.12 after reporting sales that fell short of analyst forecasts and cutting full-year 2017 estimates for revenue and adjusted EBITDA.
Net revenue for the period was $US197.3 million, missing analyst estimates of $US198.4 million. The company also lowered its full-year sales forecast to the range from $US850 million to $US865 million, down from $US880 million to $US900 million.
Further, Yelp sees adjusted EBITDA of $US130 million to $US145 million, a downward adjustment from its previous estimate of $US150 million to $US165 million.
“While we are lowing our revenue and adjusted EBITDA outlook for the year, sales productivity has rebounded, transactions revenue has accelerated and we’ve seen promising results from our newly expanded retention efforts,” Yelp chief financial officer Lanny Baker said in a statement.
The share weakness is bad news for investors who have already seen Yelp’s stock drop 19% from a roughly 19-month high reached in early February.