The reason behind the recent surge in Yelp's stock market value

Beijing time August 1, 2013, the United States catering O2O business Yelp announced the results of the second quarter of 2013 as at June 30. Yelp continued to lose money in the second quarter of 2013, with a 68.5% per cent growth of 55.023 million, and continued to keep its losses, but its losses narrowed to $878,000 trillion, according to earnings reports. Yelp's second-quarter results and revenue forecasts for the next quarter were more than Wall Street analysts ' expectations, boosting Yelp's share and market capitalisation. Yelp has continued to lose money for nearly 10 consecutive quarters, but its share price has remained at $15 a year since the IPO, and the overall trend has been upward. As of August 6, 2013, Yelp's closing price was $54 trillion, more than three times times the IPO offer. Yelp has gained sustained share prices and market capitalisation with a loss of earnings, and Pugo on behalf of the consulting summary, saying that the reasons behind it are as follows:

Revenues are growing at a high rate and the losses narrowed.

The six consecutive quarterly earnings of Yelp have maintained a year-on-year increase of more than 60% per cent, and their growth has been affirmed by the capital markets. Whether in the United States or China, the common sense of e-commerce, although the great way, but offline business in the foreseeable future will be the absolute subject, and residents consumption will generally have a certain radius, there is no doubt the future of the local business market, including catering, domestic maintenance, health laws and other local services have hundreds of billions of dollars above the market size.

Yelp deep into the local O2O business market, is the leading enterprise in this field, the future has the opportunity to grow into a giant. In recent quarters, Yelp reported a narrowing of its losses, which narrowed to $878,000 trillion in the second quarter of 2013 and a glimmer of profit, giving the capital market great confidence. Commodities advisory that the rapid growth in revenue at the same time the loss narrowed, this is the most important reason to promote the continued rise in Yelp's share price.

Involved in trading links, the deepening of the industry chain.

Yelp is the media attribute of the local consumer community, the corresponding advertising revenue is its most important source of revenue. According to Yelp's earnings figures, Yelp's local advertising and national brand advertising accounted for 81.4% and 12.8% respectively in the second quarter of 2013, with a total of 94.2%, which accounted for absolute dominance. Yelp, in addition to advertising, is aggressively expanding its new revenue direction. In June 2010, Yelp and OpenTable cooperated to provide catering bookings on the Yelp website, and in August 2010, Yelp launched group buying service deals, but for the user experience, Yelp did not aggressively sell its group buying service via email, mainly on the web and mobile side.

On the July 10, 2013, Yelp first launched the Yelp platform platform, with the open table to provide users with ordering and delivery services, users can not only browse and view the local food, but also online ordering, the Yelp service will cover the entire meal, Payment and payment process. On July 18, Yelp purchased an online booking application seatme for 12.7 million dollars, enabling Yelp merchants to make bookings, seatme, and other services later. In the second quarter of 2013, other revenues, including ordering and buying, accounted for 5.8% of Yelp's overall revenue. Quality Road Consulting that Yelp through the provision of group buying, meal delivery, booking and other services into a deeper industrial chain, the revenue model from the simple advertising mode (CPM) to the split-mode (CPC/CPS) migration, which for the long-term development of Yelp to provide a more diverse path.

The moving end behaves well and the user continues to precipitate.

The local business O2O market based on the life radius is better suited for mobile, and Yelp is doing well on the mobile side. Yelp's earnings data showed that in the first quarter of 2013, Yelp's clients used an average of 10 million per month of independent mobile devices, with 40% of local ads on the mobile side in the second quarter of 2013, and 59% from mobile (including apps and mobile web sites).

Compared with the PC side, the mobile end of the display of advertising has a certain disadvantage; but for yelp such a serious reliance on Google, Yahoo and other search-induced sites, the mobile end of the user groups more viscous, can reduce the cost of access to traffic, so that the initiative to grasp the development. Yelp is also more successful in maintaining the community atmosphere by moving the end of the user, and the cumulative number of comments and the monthly independent access users continues to show an upward trend. In the second quarter of 2013, Yelp's cumulative comments were 42.53 million, and the monthly number of independent users reached 108 million.

International expansion is progressing well.

The mobile end and international expansion were the two big development strategies of Yelp in 2013. In terms of international expansion, Yelp bought its European rival, Qype, in October 2012 at $50 million trillion, after which it began to consolidate Qype's European market. At the end of 2012, Yelp covered 97 markets in 20 countries (including 53 U.S. markets and 44 international markets). Yelp's New Zealand sub-station was launched in May 2013, followed by July, when Yelp launched its website in the Czech Republic.

Today, the number of Yelp-covered markets has risen to 106, with the international market reaching 50, and the number of US domestic markets is flat. From a revenue point of view, Yelp's international revenues accounted for only about 6% in the first quarter of 2013, but commodity consulting found that Yelp had begun to commercialize in some European countries, especially in the UK, and that other international markets, after early cultivation, The future international market is expected to be the main driver of the continued rapid growth of Yelp's overall revenue.

[Huang, research director, Internet industry analyst, micro-credit public, "Universal Society" (Micro-signal: Puji-she)]