Q1 2025 Yelp Inc Earnings Call

Unknown Attendee: Now I'll read our Safe Harbor Statement. We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision of these forward-looking statements in light of new information or future events.

Safe Harbor statement, we'll make certain statements today that are forward looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward looking statements reflect our opinions only as of the date of this call and we undertake no obligation to revise or publicly release the results of any revision of these forward looking.

In light of new information or future events.

Unknown Attendee: In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results.

In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results.

Unknown Attendee: During our call today, we may discuss adjusted EBITDA, adjusted EBITDA margin, and free cash flow, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles. In our shareholder letter released this afternoon and our filings with the SEC, each of which is posted on our investor relations website, you will find additional disclosures regarding these non-GAAP financial measures, as well as historical reconciliations of GAAP net income or loss to both adjusted EBITDA and adjusted EBITDA margin, and a historical reconciliation of GAAP cash flows from operating activities to free cash flow.

During our call today, we may discuss adjusted EBITA, adjusted EBITA margin and free cash flow, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles in our shareholder letter released this afternoon.

and a historical reconciliation of gap cash flows from operating activities to free cash flow. And with that, I will turn the call over to Jeremy.

Unknown Attendee: And with that, I will turn the call over to Jeremy.

Jeremy Stoppelman: Thanks, Kate, and welcome, everyone. Led by continued strength in our services business, Yelp delivered 8% year over year revenue growth and strong profitability in the first quarter. We generated $359 million of net revenue while expanding net income margin by three percentage points and adjusted EBITDA margin by four percentage points from the prior year period.

Jeremy: Thanks, Kate, and welcome everyone. Led by continued strength in our services business, Yelp delivered 8% year-over-year revenue growth and strong profitability in the first quarter. We generated $359 million of net revenue while expanding net income margin by 3% is points and adjusted EBITDA margin by 4% is points from the prior year period.

Jeremy Stoppelman: Our product led strategy has continued to strengthen our business and we recently rolled out 15 new features and up We continue to see a divergence in category performance in the first quarter. The operating environment for businesses in our restaurant, retail and other categories remain challenging. And our R&O revenue declined by three percent year over year as a result. At the same time, our services categories, where we focus our product efforts, drove continued momentum. Services revenue increased by 14 percent year over year, making it the 16th consecutive quarter of double digit year over year growth. Request-to-quote projects increased by approximately 10% year-over-year, primarily as a result of improvements to the request-to-quote flow and adoption of Yelp Assistant, even as our spend on acquiring projects through paid search was significantly lower than in the prior year period.

Jeremy: Our product-led strategy has continued to strengthen our business and we recently rolled out 15 new features and updates [inaudible]

Jeremy: We continue to see a divergence in category performance in the first quarter. The operating environment for businesses in our restaurant, retail and other categories remain challenging and our RRNO revenue declined by 3% year over year as a result. [inaudible]

Jeremy: At the same time, our services categories, where we focus our product efforts, drove continued momentum. Services revenue increased by 14% year-over-year, making it the 16th consecutive quarter of double-digit year-over-year growth.

Jeremy: Request to quote projects increased by approximately 10% year-of-year, primarily as a result of improvements to the request to quote flow and adoption of Yelp assistant, even as are spent on acquiring projects through paid search for significantly lower than in the prior year period.

Jeremy Stoppelman: Excluding projects acquired through paid search, request-to-quote projects increased by more than 15% year-over-year in the quarter.

Jeremy: Excluding projects acquired through paid search, request equipped projects increased by more than 15% year over year in the quarter.

Jeremy Stoppelman: To help make the hiring experience even smoother, we recently enhanced Yelp Assistant by adding AI-powered photo recognition. We also introduced response quality badges to highlight service pros who consistently provide helpful replies to project requests. In addition, we have increased our focus on multi-location services businesses this year and announced an integration with workflow automation platform Zapier. Leveraging Yelp's Leads API, the integration directly connects Yelp to over 800 CRM platforms and lead management tools. More broadly, our product and engineering teams continue to leverage AI to transform the way consumers connect with great local businesses across categories. During the first quarter, we introduced several improvements to our matching algorithms and experimented with themed ad formats to deliver greater value to our advertisers.

Jeremy: To help make the hiring experience even smoother, we recently enhanced Help Assistant by adding AI-powered photo recognition.

Jeremy: We also introduced response quality badges to highlight service pros who consistently provide helpful replies to project requests. In addition, we have increased our focus on multi-location services businesses this year and announced an integration with workflow automation platforms up here.

Jeremy: Leveraging Yelp's leads API, the integration directly connects Yelp to over 800 CRM platforms and lead management tools.

Jeremy: More broadly, our product and engineering teams continue to leverage AI to transform the way consumers connect with great local businesses across categories. During the first quarter, we introduced several improvements to our matching algorithms and experimented with themed ad formats to deliver greater value to our advertisers.

Jeremy Stoppelman: At the same time, our consumer teams continued the expansion of AI-powered business summaries and made progress bringing Yelp Assistant to other categories and entry points.

Jeremy: At the same time, our consumer teams continued the expansion of AI-powered business summaries and made progress bringing Yelp assistant to other categories and entry points.

Jeremy Stoppelman: We recently announced two upcoming AI-powered call answering services, one for service pros and another for restaurants, to help business owners manage incoming calls like booking reservations and collecting project details. Our research has found that consumer phone calls are a critical lead source, yet many go unanswered. There's a clear opportunity to provide additional value to local businesses, and we see these products as a strong solution.

Jeremy: We recently announced two upcoming AI-powered call-answering services, one for service pros and another for restaurants to help business owners manage incoming calls like booking reservations and collecting project details.

Jeremy: Our research has found that consumer phone calls are a critical lead source, yet many go unanswered. There's a clear opportunity to provide additional value to local businesses and we see these products as a strong solution.

Jeremy Stoppelman: In summary, our focus on services continues to strengthen our business, and we remain excited by the opportunities ahead to drive profitable growth and shareholder value over the long term.

Jeremy: In summary, our focus on services continues to strengthen our business and we remain excited by the opportunities ahead to drive profitable growth and shareholder value over the long term. With that, I'll turn it over to David. [inaudible]

David Schwarzbach: With that, I'll turn it over to David. Continued strength in our services business drove this growth. Services revenue increased by 14% year over year to $232 million. Revenue growth and services accelerated from the fourth quarter, driven by the inclusion of RepairPal in our auto services category. As Jeremy mentioned, restaurants and retailers remain pressured in the quarter, resulting in a 3% year-over-year decline in RR&O revenue to $110 million. A decrease in RRNO locations, offset growth in services locations in the quarter. This resulted in overall decline of 3% year-over-year in paying advertising locations to 517,000. Ad clicks declined by 3% year-over-year in the quarter, primarily due to macro pressures in RRNO categories, and to a lesser extent, reduced spend on paid search in the current year period.

David: Thanks, Jeremy, in the first quarter, that revenue increased by 8% to $359 million, $4 million above the high end of our outlook range [inaudible]

David: Trison via a disciplined approach net income increased by 72% year-over-year, to $24 million, or 36 cents per share on a diluted basis, representing a 7% margin [inaudible]

David: Adjusted even down increased by 32% year over year to $85 million, representing a 24% margin, putting at $15 million about the high end of our outlook range.

David: Continued strength in our services, business drove this growth. Services revenue increased by 14% year-over-year, to a total of 232 million dollars. Revenue growth in services accelerated from the fourth quarter driven by the inclusion of repair power in our auto services category.

David: As Jeremy mentioned, restaurants and retailers remain pressured in the quarter, resulting in a 3% year-over-year decline in our no revenue to $110 million.

David: A decrease in RRNO locations off-site growth and services locations in the quarter. This resulted in overall decline of 3% year-over-year in paying advertising locations to 517,000.

David: Ad clicks declined by 3% year-over-year in the quarter primarily due to macro pressures in RRNO categories and to a lesser extent reduced spend on paid search in the current year period. At the same time, advertiser demand and services remain strong, contributing to a 9% year-over-year increase in average CPC.

David Schwarzbach: At the same time, advertiser demand and services remained strong, contributing to a 9% year-over-year increase in average CPC.

David Schwarzbach: Turning to expenses, our first quarter results demonstrate the margin potential of our business with a net income margin of 7% and an adjusted EBITDA margin of 24%. We achieved these strong results through disciplining. As we continue to focus on allocating resources towards our best opportunities, we again expect headcount will be approximately flat year over year by the end of 2025. In the first quarter, we reduced stock based compensation expenses, a percentage of revenue by two percentage points year over year to 10%. we remain focused on reaching our targets of less than 8% by the end of the year and less than 6% by the end of 2027.

David: Turning to expenses, our first quarter results demonstrate the margin of potential of our business with a net income margin of 7% and an adjusted EBITL margin of 24%. We achieved these strong results through discipline expense management. [inaudible]

David: As we continue to focus on allocating resources towards our best opportunities, we again expect headcount will be approximately five year over year by the end of 2025.

David: In the first quarter, we reduced stock-based compensation expenses, the percentage of revenue, by two percentage points year-over-year to 10%.

David: We remain focused on reaching our targets with less than 8% by the end of the year and less than 6% by the end of 2027. We expect these efforts to stack over time, improving the quality of our adjustity of the DAW and benefiting gap profitability in the years to come.

David Schwarzbach: We expect these efforts to stack over time, improving the quality of our adjusted EBITDA and benefiting GAP profitability in the For more information visit www.fema.gov Our capital allocation strategy consists of three main elements. First, maintaining a healthy cash balance to fund our operations. Second, retaining balance sheet capacity for potential acquisitions. And third, returning excess capital to shareholders through share repurchase www.fema.gov In the first quarter, we repurchased $62.5 million worth of shares at an average purchase price of $37.01 per share. As of March 31, 2025, we had $268 million remaining under our existing repurchase authorization. We plan to continue repurchasing shares through the remainder of 2025, subject to market and economic conditions.

David: Our capital allocation strategy consists of three main elements, first maintaining a healthy cash balance to fund their operations.

David: Second, retaining volunteer capacity for potential acquisitions, and third, returning excess capital to shareholders to share repurchases.

David: In the first quarter, we repurchased $62.5 million worth of shares at an average purchase price of $37.01 per share. As of March 31, 2025, we had $268 million remaining under our existing repurchase authorization.

David: We plan to continue repurchasing shares through the remainder of 2025 subject to market and economic conditions.

David Schwarzbach: Turning to our outlook, when we provided our initial outlook range in February, we noted that there were considerable macroeconomic and policy uncertainties. Since then, we've delivered a strong first quarter with results exceeding our own expectations, at the same time macro uncertainties exist. As a result, we currently expect second quarter net revenue will be in the range of $362 million to $367 million. For the full year, we are modestly widening our range with net revenue now expected to be between $1.465 billion and $1.485 billion. While our performance-based ad platform has proven resilient in previous periods of macroeconomic pressure, our guidance does not reflect the substantial decline in economic conditions.

David: Turning to our outlook, when we provided our initial outlook range in February , we noted that there were considerable macroeconomic and policy uncertainties. Since then, we delivered a strong first quarter with results exceeding our own expectations. At the same time, macro uncertainty increased.

David: As a result, we currently expect second quarter net revenue will be in the range of $362 million to $367 million. For the full year, we are modestly widening in our range with net revenue now expected to be between $1.465 billion and $1.485 billion.

David: Will our performance-based ad platform has proven resilient in previous periods of macroeconomic pressure. Our guidance does not reflect the substantial decline in economic conditions.

David Schwarzbach: Turning to margin, we expect expenses to increase modestly for the remainder of the year, primarily driven by cost of revenue. In addition, we expect our efforts to reduce SBC will act as a headwind to adjust to the EBITDA as we move throughout the year, but will not impact netting. As a result, we expect second quarter adjusted EBITDA will be in the range of $84 million to $89 million. Balancing our first quarter outperformance with heightened macro uncertainties. We are also widening our range and now expect full year adjusted EBITDA to be between $345 million and $365 million.

David: As a result, we expect second quarter, Jatadi Bada will be in the range of $84 million to $89 million

David: Balancing our first quarter outperformance with heightened micro uncertainties. We are also widening our range and now expect full year adjusting the dot to be between $345 million and $365 million and $200 million.

David Schwarzbach: In closing, Yelp's first quarter results reflect the underlying profitability of our business. We continue to believe in the opportunities ahead to create shareholder value over the long term as we focus our investments in areas that we believe will drive business performance.

David: In closing, Yelp's first quarter results reflect the underlying profitability of our business. We continue to believe in the opportunities ahead to create sure hold a value over long term, as we focus our investments in areas that we believe will drive business performance. With that operator, please open up the line for questions.

Unknown Attendee: With that, Operator, please open up the line for questions. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you.

David: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure you are not on speakerphone and that your phone is not a mute when called upon. Thank you.

Sergio Segura: Your first question comes from Sergio Segura with KeyBank. Your line is open. Great, thanks for taking the questions. I guess first, you mentioned in the business outlook seeing some steady spend in April that was below typical seasonality, but some encouraging signs in early May. So maybe you could just dive into the trends you're seeing quarter to day and anything to call out from a vertical perspective.

Speaker Change: Your first question comes from Sergio Segura with Keybank. Your line is open.

Great, thanks for taking the questions.

Sergio Segura: I guess first you mentioned in the business outlook seeing some steady spend in April that was below typical seasonality but some encouraging signs in early May so maybe you could just dive into the trends you're seeing courted today and anything to call out from a vertical perspective.

Speaker Change: Yeah, hi, Sergio. I can take that. You know, I think the questions really around advertiser sentiment and kind of impact from macro environment. [inaudible]

Speaker Change: to perform well with 14% year-over-year growth. You know, many of these projects are non-discretionary, you know, which provide at least a degree of insulation from some of the broader macro pressures.

Speaker Change: Multi-location advertisers, particularly in R&O, are a little bit more cautious. Thank you.

Speaker Change: Well, I'll spend health steady in Q1. They're taking, you know, a quarter by quarter approach given some of that macro uncertainty. We are encouraged by the early traction and our multi location services initiative adoption of the lead API. Continue throughout the quarter and into one we announced the Zapier integration, which has really strong early signs as well. And we did see acceleration and revenue growth in multi location services from Q4 to Q1, which are, you know, all positive.

Speaker Change: Signals. Ultimately our down funnel ad product continues to deliver really measurable ROI, which is especially valuable in uncertain environments.

Speaker Change: but we believe that the product positioning and attribution capabilities help advertisers really justify that spend. When you talk about April specifically, you know, certainly some of the macro uncertainties have increased. We believe this caused some of our advertisers to maintain.

Speaker Change: Steady spent in April when we typically see an increase in budgets, despite the signals in early May have been encouraging and that we've reflected that in our guide.

Sergio Segura: Great, and maybe a follow up on on those comments just on I know RRNO typically is more enterprise or larger advertisers versus SMB, but anything to call out what you're seeing within the RRNO services category on enterprise versus SMB strength. Yeah, thanks. You know, ultimately, R&O continues to face headwinds. And that is a lot of our multi location revenue. And so they've not been as full throated and kind of their commitment on the year and ability to go spend, you know, on the SMB side. Certainly, that's, you know, the majority of our revenue is there.

Great, and maybe a follow-up on...

Speaker Change: on those comments. Just on, I know RRNO typically is more enterprise or larger advertisers, versus SMB, but anything to call out what you're seeing within the RRNO and services category on enterprise versus SMB strength.

Jeremy Stoppelman: And in fact, if you if you look at our paying advertiser locations, this is the first quarter where we have more services paying advertiser locations than we do our R&O. You know, we do continue to invest in the in the R&O core experience, the core consumer experience. And, you know, we've announced products coming up like, you know, Yelp Assistant for other categories. So it continues to be an investment area for us.

Speaker Change: You know, we do continue to invest in the RR&O core experience, the core consumer experience and you know we've announced products coming up like you know Yelp assistant for other categories so

Speaker Change: It continues to be an investment area for us. We don't have a crystal ball, so kind of when it turns around we don't believe on premise signing is going away, but and our relationships really remains strong within the multi-location art or category. And when it turns we believe we have the ability to capture that upside. [inaudible]

Sergio Segura: Don't have a crystal ball as to kind of when it turns around. We don't believe on premise dining is going away. But and and our relationships really remains strong within the multi location R&O category. And when it turns, we believe we have the ability to capture that up. Great, very helpful. Thank you.

Great, very helpful. Thank you

Jason Kreyer: The next question comes from Jason Kreyer with Craig Hallam. Your line is open. Great, thank you.

Speaker Change: The next question comes from Jason Kreyer with Craig Hallam. Your line is open.

Cal Bartyzal: This is Cal on for Jason. So maybe first, can you just kind of walk through the drivers of the CPC growth that you saw? You know, how much of this was just from services demand becoming a bigger piece of the mix? And what are some ways that you can kind of maintain the budget growth that you've seen, while maybe decelerating or reducing CPC to deliver more value to your advertisers?

David Schwarzbach, David Schwarzbach, David Schwarzbach

Speaker Change: Great, thank you. This is Cal on for Jason. So maybe first can you just kind of walk through the drivers of the CPC growth that you saw, you know, how much of this was just from services demand becoming a bigger piece of the mix and your what are some ways that you can kind of maintain the budget growth that you've seen while maybe decelerating or reducing CPC to deliver more value to your advertisers? Thank you very much.

David Schwarzbach: Hey, Cal, it's David. Thanks for the question. Just to touch first on what's happening with click growth and CPCs. We definitely saw robust advertiser demand in the first quarter that enabled us to deliver the performance that we did. That being said, to Jed's comments, it is and has been softer in restaurant retail and other, and those trends have led to fewer clicks. So it's predominantly driven by the dynamics at play in restaurant, retail, and other as compared to services. Now, on the services side, there is an element of that where we were investing in paid search in the first quarter of 2024, and that did lead to an increase of clicks.

Speaker Change: Take out, David. Thanks for the question. Just to touch first on what's happening with Quick growth in NCPCs.

Speaker Change: We definitely saw Robert the advertiser command in the first quarter that enabled us to deliver the performance that we did.

Speaker Change: That being said to Jed's comments, it has been softer in restaurant retail and other and those trends have led to fewer clicks. [inaudible]

Speaker Change: So it's predominantly driven by the dynamics of play in restaurant retail and other is compared to services now.

Speaker Change: on the services side there is an element of that where...

Speaker Change: We were investing in paid search in the first quarter of 2024, and that did lead to an increase of clicks, so you have a year-on-year comparison there, but underneath

David Schwarzbach: So you have a year-on-year comparison there, but underneath, the overall performance continued to be strong. In terms of delivering value to advertisers on the CPC side, there's a couple thoughts. One, we are very focused on delivering valuable clicks to advertisers, and where it makes sense for us to actually deliver fewer clicks, but of higher quality, we're very focused on that and willing to do that. So that's one dynamic at play, because at the end of the day, the advertiser wants a great lead, not just the clicks. So that's the first dynamic around being able to deliver value.

Speaker Change: that overall performance continued to be strong, in terms of delivering value, [inaudible]

Speaker Change: Two advertisers on the CPC side. There's a couple thoughts. One, we are very focused on delivering valuable clicks to advertisers and where it makes sense for us to actually deliver fewer clicks but a higher quality. We're very focused on that and willing to do that. So that's one dynamic you play. Thank you very much.

Speaker Change: Because at the end of the day, the advertiser wants a great lead, not just the click, so that's...

the first dynamic around...

Speaker Change: being able to deliver value. The second is there are category mixed shifts that are occurring as our services business continues to grow and grow significantly, and that can lead to an increase in CPCs, while still delivering the exact same value since it's a mixed question.

David Schwarzbach: The second is there are category mix shifts that are occurring as our services business continues to grow and grow significantly, and that can lead to an increase in CPCs while still delivering the exact same value since it's a mix question.

David Schwarzbach: And then the third point is... We want to ensure that when consumers come to Yelp, they're really getting a great experience. And we have been investing heavily in the pro experience on Yelp, including now providing badging that indicates whether or not that pro is providing a great experience. And we do believe there's a lot of opportunity for us to continue to guide pros to create great experiences. for consumers who are visiting them. And we think that leads to higher quality leads, better responses for them. And that's certainly something that we think makes the experience on Yelp more valuable to consumers and will encourage them to come back.

And then the third point is...

We want to ensure that...

Speaker Change: when consumers come to Yelp, they're really getting a great experience, and we have-

Now providing badging that indicates...

Speaker Change: Whether or not that pro is providing a great experience and we do believe there's a lot of opportunity for us to continue to guide pros to create great experiences. Thank you.

for

Speaker Change: Consumers who are visiting them and we think that leads to higher quality leads, better responses for them.

Speaker Change: and that's certainly something that we think makes the experience on Yelp more valuable to consumers and will encourage them to come back. So we have a broad set of initiatives that we think really go after the opportunity, first and foremost, to deliver more valuable leads. And then if we are delivering those more valuable leads, we believe that...

David Schwarzbach: So we have a broad set of initiatives that we think really go after the opportunity, first and foremost, to deliver more valuable leads. And then if we are delivering those more valuable leads, we believe that. we can charge higher rates for the clicks.

Speaker Change: We can charge higher rates for the clicks so that when you put all that together we feel like we're making great progress and we look forward to continuing to execute against the roadmap that we set for ourselves there.

David Schwarzbach: So that meant when you put all that together, we feel like we're making great progress and we look forward to continuing to execute against the roadmap that we set.

Cal Bartyzal: Great. And then just on the Yelp assistant, you know, adoption was very strong again, despite, you know, as you noted, a lower paid search budget, you know, you're still spending in Q1 to 2024. So is there something that you're doing internally to continue driving strength and adoption?

Speaker Change: Great. And then just on the Yelp Assistant, you know, adoption was very strong again despite, you know, as you noted, a lower paid surge budget, you know, you're still spending in Q1 to 2024. So is there something that you're doing internally to continue driving strength and adoption?

Speaker Change: Hey, guys, Jeremy, I'll take that. Yeah, we're pleased with the performance of Yelp Assistant. There continues to be a lot of room for growth there and development of the product.

Speaker Change: We have new entry points that we continue to roll out, and there are some significant ones that are still untapped. For instance, if you go to a business details page and tap on request a quote, you're not going to see Yelp Assistant yet. So there's plenty of room to run there. We also see a big opportunity in bringing Yelp Assistant to many more categories. In fact, all categories.

Speaker Change: and really as you think about it more broadly, I think Yelp Assistant and that conversational format.

Speaker Change: can be really the future of how you're interacting with Yelp and tapping into information. So it gives us an opportunity to really reinvent the consumer experience, reinvent the search experience. So we're really excited about the possibilities of that.

Speaker Change: And then once we have that fully built out, there's also the opportunity to take it off of Yelp and think about

Speaker Change: Chatbots, new new age, or new fangled search engines, they need to tap into local content.

Speaker Change: We think our local content is the best that's out there,

Speaker Change: The data that we have is to be able to turn that into an API and provide Yelp Assistant. I think to other platforms is an interesting possibility too. So there's a lot of runway for us as we continue to work on Yelp Assistant. We're really excited about it.

Unknown Attendee: Great, thank you very much for taking my question.

Great. Thank you very much for taking my questions.

Shweta Khajuria: The next question comes from Shweta Khajuria with Wolf Research. Your line is open.

Speaker Change: The next question comes from Shweta Khajuria with Wolf Research. Your line is open.

Brian: Hi, this is Brian. I'm for Shweta. Thank you for taking my question. Could you just please expand on your broader AI strategy and what early incrementality you're unlocking here with some of the new product announcements, like the photo recognition and response quality announced last week, and then the 135% project submissions as well? That's strong to see.

Brian: Hi, this is Brian on Shweta, thank you for taking my question [inaudible]

Speaker Change: Could you just please expand on your broader AS strategy and what early income mentality you're unlocking here with some of the new product announcements like the photo recognition and response quality announcements?

last week, and then on to 35% projects and missions as well.

Unknown Attendee: With some of the experimentation that you mentioned in the letter as well, with the summaries and visual experiences, what are some really green streets that you could point to from any of these initiatives and any of this ability onto the roadmap to capitalize within this momentum would be great? And just as a follow-up, would any of these be supporting the jump in CPCs that you saw this quarter? Thank you.

That's trying to see you.

Speaker Change: With some of the experimentation that you mentioned at letters, well, with the summaries and visual experiences, what are some really green treats that you could point to from any of these initiatives and any of this ability onto the roadmap to capitalize into this momentum would be great and just

Speaker Change: As a follow-up with any of these be supporting the jump in CPCs that you saw this quarter. Thank you Thank you.

Speaker Change: Thanks for the question, Brian. We see a ton of opportunities ahead leveraging AI. So, as I was just talking about, Yelp Assistant, I think, represents a great example of something where we're leading the industry within local services, where you can have a conversation. You know, the consumer can tell you all about their project. We use that to do intelligent matching. We know which questions to ask.

Speaker Change: based on the LOM technology. And there was an additional feature that we added, which is you can now upload a photo. And again, the AI understands what's in the photo. If it's a photo of something, let's say a washer dryer, it perhaps can pick out the model number for you and pick up details that you might not have even thought to include as your messaging trying to get to the right pros. And so we can deliver that valuable lead information to pros, which is really exciting. Of course, there's other applications. And again,

Speaker Change: You know, so we see lots of opportunities to enhance the product. And speaking of product, we actually have, as we announced.

Speaker Change: and with our release today, new products coming, leveraging AI, which will be answering services. So both on the restaurant side.

Speaker Change: That's going to unlock a ton of value, not just from Yelp leads, but anywhere that they're getting leads. Those calls are being dropped and we can provide a solution. So we've been working on that for a while now and we expect to have that out soon.

Nitin Bansal: The next question comes from Nitin Bansal with Bank of America. Your line is open. Hi, thank you for taking my question.

Speaker Change: The next question comes from Nitin Bansal with Bank of America. Your line is open.

Hi, thank you for taking my question.

Nitin Bansal: So first of all, can you update us on the engagement trends across mobile and web? And were there any notable changes on platform usage in OneQ?

Speaker Change: So, first of all, can you update us on the engagement trends across mobile and web?

Speaker Change: and whether any notable changes on platform usage in one queue. And secondly, can you share some details on monetization trends for repair and how that is tracking against your internal expectations? Thank you very much.

Nitin Bansal: And secondly, can you share some details on monetization trends for RepairPal and how that is tracking against your internal expectations? Thanks for the question, Nitin. On the consumer engagement traffic side, you know, we did see some macro pressure show up in restaurant retail and other. But on the services side, you know, really pleased with 14% revenue growth there as well as request to quote. Project volume was 15% year over year if you take out the paid activity that we had last year. And of course, with Yelp Assistant, there's a lot of runway there. We're excited to continue to roll that out, as well as expand it to other categories and reinvent really the search experience.

Speaker Change: Thanks for the question, Nitin. On the consumer engagement traffic side, you know, we did see some macro pressure shop and restaurant retail and other, but on the services side, you know, really pleased with 14% revenue growth there as well as request a quote.

Speaker Change: Project Volume was 15% year-over-year if you take out the paid activity that we had last year.

Speaker Change: And of course, with Yelp assistant, there's a lot of runway there. We're excited to continue to roll that out as well as expanded to other categories and reinvent really the search experience. So there's a lot coming on the consumer engagement side. We're excited to continue on the consumer engagement side.

Nitin Bansal: So there's a lot coming on the consumer engagement side. On to RepairPAL, RepairPAL, you know, obviously the integration is happening, going smoothly. We're pleased with the acquisition. We see a lot of low-hanging fruit, things like bringing RepairPAL just to the Yelp site so that you can schedule an auto repair right from a business's page. You know, very obvious things like that.

Speaker Change: on to RepairPel, RepairPel, obviously the integration is happening, going smoothly, we're pleased with the acquisition, we see a lot of low hanging fruit, things like bringing RepairPel just to the Yelp site so that you can schedule an auto repair right from a business page, very obvious things like that, those will be coming in the coming months, and we think that'll have a nice positive upside that we will realize as well.

Unknown Attendee: Those will be coming in the coming months, and we think that'll have a nice positive upside that we will realize as well. Thank you. Once again, if you have a question, it is star one on your telephone keypad.

Thank you

Speaker Change: Once again, if you have a question, it is star one on your telephone keypad.

Unknown Attendee: With no further questions, this concludes the question and answer session and will conclude today's conference call. Thank you for joining. You may now disconnect.

Speaker Change: With no further question, this concludes the question and answer session and will conclude today's conference call. Thank you for joining. You may now disconnect.