Yelp Inc. · NYSE:YELP
Yelp — Investor Presentation (February 2019)
21 slides from Yelp's investor presentation, Feb 13, 2019
Slide 1: Investor Presentation February 2019
Al a Investor Presentation ye| D4 February 2019
Slide 2: Safe Harbor
Safe Harbor FORWARD-LOOKING STATEMENTS ‘These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the ‘accompanying oral presentation, including statements regarding Yelp Inc.'s (‘Yel
Slide 3: Our Mission: Connecting People with Great Local Businesses
Our Mission: Connecting People with Great Local Businesses a i = 5 million 177+ million 33+ million 540K+ 20+ million 1.5 million Claimed Local Cumulative App Unique Paying Advertising Total Request-a-Quote Business Reviews! Devices? Locations® Seated Diners? Leads Delivered? Locations* (1.4+ millio
Slide 4: Our Powerful, Self-Reinforcing Network Delivers Unparalleled Value
Our Powerful, Self-Reinforcing Network Delivers Unparalleled Value to Consumers and Businesses Consumers Trusted Personalized Source Discovery Convenient aves Time & pn Mone} Capabilities y —_\ yelpsé KA Local Businesses Se & Expanded Differentiated Reach Offerings High Intent Fine-tuned Consumers O
Slide 5: We Have Built a Trusted, Comprehensive, Mobile-First Local Platform
We Have Built a Trusted, Comprehensive, Mobile-First Local Platform...and We Are Just Getting Started Where We Were at IPO Where We Are Today Consumer Business Consumer Business ID Directory @ Mas IB. birectony Ow B Review © order EQ Review (3 Book © Quote Reference Guide to Local Businesses App to
Slide 6: Where We Plan to Go
. Where We Plan to Go ke Increase focus on advertisers and business owners Pi ee. Our iF Enhance our go-to-market strategy by integrating lext Phase *a* product and product marketing with sales efforts of Growth Establish long-term targets for growth, profitability
Slide 7: Planned Steps to Create Long-Term Shareholder Value
Planned Steps to Create Long-Term Shareholder Value Deliver Double-Digit Revenue CAGR from 2019 Through 2023 Drive Margin Expansion and Optimize Cost Structure Accelerate Strategy Through Effective Partnerships Increased Our Share Repurchase Authorization from $250 Million to $500 Million Added Thre
Slide 8: Deliver Double-Digit Revenue CAGR from 2019 Through 2023
0) Deliver Double-Digit Revenue CAGR from 2019 Through 2023 ...With A Large Market Opportunity Strong Track Record of Growing Revenu to Sustain Long-Term Growth (Sin millions) vyeipis I Local _ im Enterprise Advertising $150+ billion SMB Spend! Local U.S. Claimed Local Business Business Locations? L
Slide 9: Multiple Initiatives to Connect Consumers and Businesses
0) Deliver Double-Digit Revenue CAGR from 2019 Through 2023 Multiple Initiatives Tailored to Help Connect Consumers and Businesses and Drive Accelerated Growth yelps¢ Mid-teens Long-Term Revenue Growth ‘Consumers Local Businesses Save Time & Money Indispensable Partner
Slide 10: Win in Key Verticals, Expand Offerings, Drive More Value
0) Deliver Double-Digit Revenue CAGR from 2019 Through 2023 An oni " : Drive More Value Win in Key Verticals Expand Offerings te Bein Cicer Optimize traffic and monetization Y High traffic Y High engagement Y High value Y High monetization ‘Meet the specific needs of every business More Functionalit
Slide 11: Capture Enterprise, Enhance Consumer Experience, Drive Growth
0) Deliver Double-Digit Revenue CAGR from 2019 Through 2023 Capture Enterpitee Enhance Consumer Drive Growth Across SMB and Experience Enterprise Customers Open up large untapped market Grow audience and engagement vont snes Product Innovation Focused Go-To-Market Organization Expanding Strategic Ch
Slide 12: Drive Margin Expansion and Optimize Cost Structure
ala rh @ Drive Margin Expansion and Optimize Cost Structure We Have Delivered Profitable Growth and Shift Emphasis to Most Efficient ‘Target Further Margin Expansion Sales Channels Adjusted EBITDA Margin’ : 30-35% Relocate Sales Out of San Francisco — in 2019 to Save ~$10 Million/Year Once Complete
Slide 13: Accelerate Strategy Through Effective Partnerships
® Accelerate Strategy Through Effective Partnerships GRUBHUB Delivering More Profitable Growth in Food Ordering Restaurants Delivering on Yelp Eats | 90K+ Dec 2018 GrubHub Partnership Strong Partner Ecosystem yelp%t yelp yelp%t yelp yelpst yelp knowledge advertising mobile distribution ad starts & c
Slide 14: Share Repurchase Authorization from $250 Million to $500 Million
€ from $250 Million to $500 Million Strong profitability and balance sheet allow robust capital return plan ion to $500 Total share repurchase authorization increased from $250 mi Existing $250 million authorization planned to be completed in 1H 2019 Capital allocation plan aligned with creating sha
Slide 15: Added Three Highly Qualified Value Creators to an Experienced and Engaged Board
® Added Three Highly Qualified Value Creators to an Experienced and Engaged Board Experienced Directors with a Diverse Skillset... Including Three New Highly Qualified, Independent Directors “ 7 directors have been senior executives of major public companies 6 directors have technology experience ci
Slide 16: Q4 & FY 2018 Results
Q4 & FY Earnings Update
Slide 17: Solid Fourth Quarter Results
Solid Fourth Quarter Results Een eriiaeucente 2 Adjusted EBITDA‘? ($ in millions) a 50 $42 4Q17 4ai8 4Qi7 4Q18 1. Excluding E2024 revenue in G4 2017, revenue growth in Qt 2018 was 12%, See side 18 fo a recension 2. Net Income for G4 2017 was 5141 millon including a $164 milion pre-tax gain on the ds
Slide 18: Strong Full-Year Performance & FY 2019 Outlook
S. Strong Full-Year Performance 04 & FY EARNINGS UPDATE “° Total Net Revenue ($ in millions) Adjusted EBITDA’ ($ in millions) $943 $851 $183 $716 S158 i : 2016 2017 2018 2016 2017 2018 Growth (30% 19% 11% Growth 78% 28% 16% Margin? 17% 19% 19% [Net Income ss) for FY 2018 was alss of $1.7 milion. Net
Slide 19: Our Long-Term Financial Targets
Our Long-Term Financial Targets Leading Local Platform A Consumer Daily Habit De Facto Local Business Partner Annual Revenue Growth Expenses as % of Revenue* Cost of Revenue Sales & Marketing Product Development G8A D&A Adjusted EBITDA Margin? 1. Stock based compensation incused in each ine except f
Slide 20: Planned Steps to Create Long-Term Shareholder Value
. Planned Steps to Create Long-Term Shareholder Value Double-Digit Revenue CAGR from 2019 Through 2023 a Drive Margin Expansion % Effective Partnership Strategies Strong Return of Capital
Slide 21: Adjusted EBITDA Reconciliation
ala Adjusted EBITDA Reconciliation aot owe (Sinmitions) 20132014015 zoe 2017208 a @ «a a @ @ a Net income (Loss) ($10.1) $265 ($229) (G17) $1520 8554 ($40) 879—«$OO SHAT (623) S107 S150 sm +Tax otter Taxed 12 @s4 148] SH = ON ON 202 e) ey 4H 92) pone + Depreci Ns 76 8532 tw wr tora woos tor tte SekB