Yelp acquires Turnstyle Analytics and Nowait
Last year, Yelp (YELP) took a number of steps to stimulate growth and minimize risks. Growth-oriented steps included the acquisition Turnstyle Analytics and Nowait, while risk-minimizing moves included the sale of food ordering and delivery service Eat24. Yelp sold Eat24 to GrubHub (GRUB) for nearly $280 million.
Turnstyle Analytics is a Wi-Fi marketing service that Yelp has rebranded as Yelp Wi-Fi. Yelp paid $20 million for the acquisition of the Wi-Fi marketing service. Through Yelp Wi-Fi, Yelp provides businesses with location-based digital marketing solutions to enable them to boost sales by driving repeat visits. Nowait is a restaurant waitlist system that enables restaurants to allow customers to add themselves to a waitlist remotely. Yelp paid $40 million for Nowait.
Revenue grew 12%
Yelp Wi-Fi and Nowait helped Yelp record 12% YoY (year-over-year) revenue growth in 4Q17. Yelp generated $218.2 million in revenue in the quarter. In comparison, revenue grew 47% YoY at Facebook (FB) and 24% YoY at Google parent Alphabet (GOOGL). Amazon’s (AMZN) revenue increased 38% YoY. Amazon is pushing hard for digital advertising funds, challenging Yelp, Facebook, and Google in the process. The chart above illustrates Yelp’s revenue trends.
Yelp’s profit jumps more than 1,620%
Revenue growth at Yelp resulted in the company posting a net profit of $142.1 million, representing ~1,620% growth in 4Q16. The profit translated into earnings per share of $1.60.