David A. Schwarzbach, the Chief Financial Officer of Yelp Inc. (NYSE:YELP), recently executed a sale of company stock, according to a recent SEC filing. The company, which InvestingPro analysis shows maintains excellent financial health with a perfect Piotroski Score of 9, continues to demonstrate strong operational performance with industry-leading gross profit margins of 91.38%. On November 29, Schwarzbach sold 10,000 shares of Yelp's common stock at an average price of $38.287 per share, totaling $382,870. This transaction was part of a pre-established 10b5-1 trading plan, which was adopted on August 29, 2024. Following this sale, Schwarzbach retains ownership of 211,988 shares in the company. The shares were sold in multiple transactions at prices ranging from $38.035 to $38.47. According to InvestingPro analysis, Yelp appears undervalued at current levels, with 10+ additional exclusive insights available to subscribers, including detailed analysis of management's aggressive share buyback program and the company's robust balance sheet metrics.
In other recent news, Yelp Inc. has made significant strides with the completion of an $80 million acquisition of auto service platform RepairPal, a move expected to bolster Yelp's service offerings. This development follows Yelp's third-quarter financial report, which revealed a record net revenue of $360 million, reflecting a 4% increase year-over-year, despite declines in restaurant, retail, and other categories. The company's Services revenue saw an 11% increase, and the Home services segment revenue grew by 15%, driven by a 25% rise in requests for quotes.
Yelp's net income margin stood at 11%, with a 28% adjusted EBITDA margin. The company continued its share repurchases with $62.5 million worth of shares bought back in the third quarter. For the full year, Yelp projects net revenue between $1.397 billion and $1.402 billion, with adjusted EBITDA expected to be between $341 million and $346 million.
These recent developments illustrate Yelp's strategy to navigate a challenging market while pursuing growth through strategic investments and acquisitions. The company's commitment to disciplined expense management, optimizing marketing spend, and leveraging AI to enhance customer interaction and ad matching, while maintaining a flat headcount, underscores its focus on profitable growth.
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