Yelp Sees $16.9 Million Loss In 2011
Yelp is the popular user-generated review website that filed for a $100 million IPO in November 2011. The company has reported a wider loss in 2011 due to an increase in spending to attract more reviewers and make the website easier to use. Yelp reported a $16.9 million loss last year compared to a $9.74 million loss in 2010 according to a regulatory filing.
Marketing and product development spending has increased over 50%. Yelp plans to trade on the New York Stock Exchange with the symbol “YELP.” Goldman Sachs will be leading the company’s IPO. Citigroup Inc., Jefferies & Co., Allen & Co., and Oppenheimer & Co. will help manage the deal.
Yelp’s sales and marketing expenses had increased 61% to $54.5 million and product development costs increased 77% to $11.6 million according to their filing. The good news is that company revenue surged 74% to $83.3 million with local advertising accounting for the largest portion. Unique visitors to Yelp increased 67% to 65.8 million in 2011. Reviews increased 64% to 24.8 million.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry