With all the attention on Google and Facebook lately, it’s easy to forget that those two behemoths have not entirely cornered the market for digital advertising.
Online review platform Yelp is having a moment today after it crushed earnings estimates with a gain of 17,000 new paid advertising accounts for the second quarter. Analysts were only expecting about 8,000, according to an estimate cited by the Wall Street Journal. The growth is driven by a transition to what Yelp calls “non-term local advertising,” which don’t require a long-term commitment from advertisers.
Either way, investors liked what they heard. Shares of the company hit a high of $49.77 today, a boost of almost 30%. It was the best day for Yelp’s stock in more than three years. Yelp has struggled over the last few years amid increased competition from other platforms that offer online reviews, including Google, which Yelp has accused of manipulating search results to favor its own services.
In its letter to shareholders, Yelp said it had net revenue of $235 million for the second quarter, exceeding its own outlook. (You can read the full report here.) Whether today’s stock jump will turn into a long-term gain remains to be seen—but for now, enjoy your moment, Yelp!