Some time ago Google and Yelp were in negotiations to form a partnership. The plan fell through and Google proceeded to purchase another review site by the name of Zagat. The venture has been successful for both services but you have to wonder if Google at times wishes its original plan had come to fruition. The recent release by Yelp of its quarterly results is not going to help if that wish is the case.
Wednesday, August 1, 2012 Yelp released its second quarter results for this year. The results are very impressive and solidify the website’s standing as one of the top social networking review sites on the web. Yelp was launched back in October 2004 in the San Francisco market and has steadily grown every year. The site allows users to rate restaurants and other types of businesses, as well as posting short reviews about their experience at the establishment. Since word of mouth continues to be one of the top methods of communication in regards to how good or bad a business is, Yelp provides the online community a great forum.
The financial numbers for Yelp are outstanding. The company’s net revenue for the second quarter of 2012 was $32.7 million, a 67% growth compared to Q2 of 2011. The company’s earnings for the first half of 2012 was $60.0 million, an increase of 66% compared to $36.1 million during the first six months of 2011. The two quarters not only show considerable earnings but a strong, consistency in the revenue pattern.
The most telling numbers may be in regards to user activity. The total number of reviews posted on Yelp increased to more than 30 million Year over Year, an astonishing increase of 54%. More important, the average number of monthly unique visitors grew to an unbelievable 78 million, an increase of 52% YoY. This is a review site that is working very well, a true display of the power of social networking. If you own a business that can be reviewed on Yelp pay heed to what your clientele has to say about you!