Yelp Charges Out Of The Gate With IPO


SAN FRANCISCO (UPI) — Rating and review Web site Yelp of San Francisco charged out of the gate in its initial public offering Friday, stock data shows.

Yelp priced itself at $15 per share, but the price almost doubled in morning trading to $24.50 per share.

That put the company at a value of $1.46 billion, CNNMoney reported.

The IPO for the popular review Web site that has 66 million unique visitors per month is sure to be dwarfed by Facebook, which filed for an initial public offering in February.

Co-founder and Chief Executive Officer Jeremy Stoppelman said the IPO was “a single, but important step in the long life of our company.”

The company is not yet eight years old and is thriving in one of the most volatile environments in the history of publicly traded stock: the Internet.

To date, Yelp has not made a profit, CNNMoney said. Its primary revenue source is advertising, but it recently started a coupon business called Yelp Deals “that’s really working for us,” Stoppelman said.

In 2011, Yelp lost $16.7 million with revenue of $83.3 million. A year earlier, the company lost $9.6 million with sales revenue at $47.4 million.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.