Yelp’s Earnings Report Leaks, Reveals CFO Is Stepping Down

The reviews site’s quarterly earnings results were released earlier than expected, causing its stock to ricochet.

Yelp’s Earnings Report Leaks, Reveals CFO Is Stepping Down
[Photo: Flickr user Nan Palmero]

Yelp’s quarterly earnings report, which was slated to be released later today, was pushed out early, according to CNBC. In its earnings results, the reviews site revealed that CFO Rob Krolik will be resigning sometime this year.

The company’s net revenue beat expectations, climbing to $153.7 million—a 40% increase from the fourth quarter of 2014 (Yelp has been profitable since late 2014). Its ad revenue jumped by 35%, and usage of Yelp’s mobile app ballooned to 20 million unique devices per month.

“I am a strong believer in the power of Yelp to help consumers and local businesses alike, which is why it has been such a tremendous opportunity and privilege to serve as CFO,” Krolik said in a statement. “It’s been a rewarding experience taking Yelp public, diversifying our offerings through acquisitions, and seeing our team deliver significant and consistent revenue growth year after year. After almost five years with Yelp, I am ready to take some time off to spend more time with family, but expect us to seamlessly transition to a new chief financial officer in the meantime.”

Krolik’s reason for stepping down is similar to the explanation given by many tech execs of late. Twitter’s media head, Katie Jacobs Stanton, and Google Search SVP Amit Singhal—who is retiring later this month—both cited spending time with family as a reason for leaving their jobs.

The company told CNBC that its earnings report was leaked earlier than intended due to “a vendor error by PR Newswire.” Yelp’s stock initially spiked, then quickly dropped again once investors caught wind of Krolik’s resignation.

About the author

Pavithra Mohan is an assistant editor for Fast Company Digital. Her writing has previously been featured in Gizmodo and Popular Science magazine.



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