Yelp Q4 Profit Down; Names David Schwarzbach CFO

Yelp Inc. (YELP) reported that its fourth-quarter net income declined to $17 million or $0.24 per share, from last year’s $32 million or $0.37 per share, reflecting higher income taxes in the fourth quarter of 2019 and a valuation allowance release in the fourth quarter of 2018.

Net revenue was $269 million, up 10% from the fourth quarter of 2018.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share and revenues of $273.65 million for the quarter. Analysts’ estimates typically exclude special items.

For 2020, the company expects net revenue to grow 10%-12% compared to 2019, with adjusted EBITDA margin increasing by 1-2 percentage points compared to 2019.

The company board authorized a $250 million addition to Yelp’s stock repurchase program.

In a separate press release, Yelp said it has appointed David Schwarzbach as Chief Financial Officer, effective February 14, and Christine Barone, CEO of True Food Kitchen, to Yelp’s Board of Directors, effective March 1.

Schwarzbach joins Yelp from Optimizely, where he most recently served as Chief Operating Officer and Chief Financial Officer. He will be replacing James Miln, who has been serving as interim CFO since September 2019. Miln will resume his role leading Financial Planning and Analysis at Yelp.

Barone replaces Mariam Naficy, who stepped down after six years as a Director of the Yelp Board, effective February 8. Barone will serve as a member of the Nominating and Corporate Governance Committee.

YELP closed Thursday regular trading at $36.50 up $1.14 or 3.22 percent. In the after-hours trade, the stock down $2.20 or 6.03 percent.

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