Going by its second quarter results, Yelp is chugging along at a great pace with its second quarter results shooting up by 32% from a year ago.
Yelp Inc has disclosed it would be divesting its Eat24 business to Grubhub for $287.5 million in cash. The news along with its better-than-expected quarterly results drove up the price of its shares by more than 18%.
Further, there is also a media report stating that its board has authorized a share repurchase program for $200 million.
Grubhub’s share however fell by 7% in extended trading.
Yelp’s second quarter revenues have shot up by a whopping 32% to $159 million, above analyst’s expectation of $158 million.
Its net income of $7.6 million has far exceeded the previous year figure of $400,000. Similarly its earnings per share were 9 cents per share, versus 1 cent per share, a year ago.
The online food delivery platform reported it has entered into a strategic long-term partnership through which it would integrate its online ordering from restaurants on Grubhub’s site.
“It’s a sign that execution is back on track,” said Matthew Thornton, an analyst with Suntrust Robinson Humphrey Capital Markets.
As for its third quarter profit guidance, Yelp said it expects revenue to be in the range of $217 to $222 million, against analysts’ expectation of $219.67 million.