Yelp, Cord-Cutting, Expensive Eggs, Facebook and 7 Billion Mobile Subscribers
In the middle of the slow summer months, this has been one hectic week: Earnings and other news have kept the information flowing at a much faster pace. I have been taking notes and wanted to share these interesting tidbits, which have gotten lost in the noise.
Yelp calls for help!
You might not have paid attention to Yelp’s quarterly earnings reports, but the company has decided to abandon the display-ad formats that are disrupting the app experience. According to Jefferies analysts Brian Pitz and Brian Fitzgerald, this is “an almost 100% margin business and therefore the impact to profitability is very significant.” They calculate that nearly “$10M of the $30M hit to the Rev/Adj. EBITDA outlook for the back half of the year will come from turning off brand inventory.” Ouch! But in the long run this will be good for Yelp, as they are focusing on customers and the app experience. I sincerely hope more