SAN FRANCISCO (AP) — Yelp reported a surprise profit in its third quarter as people posted more reviews on its site. The company also said Wednesday that it will cut 175 jobs as it abandons its plan to expand into international markets.
Shares of Yelp jumped 16 percent in morning trading.
The international job cuts amount to 4 percent of Yelp's total workforce of 4,350 employees, the San Francisco-based company said. The company will stop selling international accounts and focus on its business in the U.S. and Canada.
"We have not yet achieved the same level of traction internationally," said Yelp co-founder and CEO Jeremy Stoppelman, in a statement.
The company expects to post a restructuring charged between $2 million and $4 million in the current quarter related to the cuts.
Yelp's site and app lets people review restaurants, mechanics and other businesses. It makes money through advertising and other services, such as its food ordering service Eat24.
Overall, the company reported net income of $2.1 million, 2 cents per share, in the three months ending Sept. 30, compared with a loss of $8.1 million, or 11 cents per share, in the same quarter a year ago.
Earnings, adjusted for one-time gains and costs, came to 22 cents per share, easily beating the loss of 3 cents per share that Wall Street analysts expected, according to Zacks Investment Research.
Revenue rose 30 percent to $186.2 million in the period, beating the $182.8 million that analysts expected, according to Zacks.
For the current quarter ending in December, Yelp said it expects revenue in the range of $191 million to $195 million. Analysts expected revenue of $192.6 million in the quarter, according to FactSet.
The company expects full-year revenue in the range of $709 million to $713 million, up from its previous forecast between $700 million and $708 million, and above the $707.9 million analysts expected, according to FactSet.
Shares of Yelp Inc. rose $3.34 to $35.82 in late morning trading Wednesday.
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