Yelp reported third-quarter results late Thursday that were lower than expected but topped revenue estimates. Yelp stock dropped.
The company reported adjusted earnings of 13 cents a share on revenue of $309 million. Wall Street expected Yelp to report earnings of 21 cents a share on revenue of $307.9 million. Also, the company narrowed its full-year outlook to a midpoint of $1.19 billion, vs. estimates of $1.197 billion.
Yelp stock sank 6.5% to 34, during after-hours trading on the stock market today.
"The third quarter brought a number of new highs as advertisers continued to turn to Yelp for our broad-based ad platform and high-intent audience," Yelp Chief Executive Jeremy Stoppelman said in a written statement with the Yelp earnings release.
Chief Financial Officer David Schwarzbach added: "We saw particularly strong third-quarter results in our services categories."
"As advertisers and consumers continue to navigate a complex macro environment, we believe our mission of connecting people with great local businesses is even more relevant," Schwarzbach said.
Yelp stock has an IBD Composite Rating of 82 out of a possible 99.
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