By Micah Maidenberg
Yelp Inc. said revenue dropped by almost one-third in the second quarter, an illustration of how the Covid-19 pandemic caused businesses to pull back on advertising as the economy largely shut down earlier in the year.
Yelp said it moved to support clients during the quarter by pausing ad campaigns, waiving advertising fees and providing them with free services. Those moves resulted in a 35% decline in April revenue compared with the year earlier. But by June, demand for ads picked back up, Yelp said.
Overall, the platform focused listings for local businesses reported $169 million in revenue for the second quarter, down 32% from the same period in 2019. Analysts predicted about $153 million in revenue for the latest period.
The company said it focused a significant portion of its relief efforts on the restaurant industry, which was hit hard by closures of dining rooms and is important in drawing consumers to its app and other digital assets.
"We were pleased to see that many [restaurant] customers who received our relief incentives restarted their advertising programs in June," Yelp said.
Yelp reported a loss of almost $24 million, or 33 cents a share, for the second quarter, down from a profit of $12.3 million, or 16 cents a share, the year earlier.
Analysts expected a loss of 51 cents a share, according to FactSet.
In April, Yelp said it would reduce its workforce by about 1,000 employees. In the second quarter, it incurred restructuring costs of $3 million.
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