Feeds

Yelp values itself at a modest $840m

Online reviews site's IPO expected soon

Internet Security Threat Report 2014

Online reviews site Yelp priced itself up yesterday for an upcoming, but as yet unspecified, IPO date, modestly telling the markets that its worth up to $840m.

Yelp, which first filed to go public in November last year, is hoping that investors will pay between $12 and $14 for its shares, showing once again that they believe in the power of online advertising to reap profits.

The review site's filing with the Securities and Exchange Commission reports a net revenue of $25.8m in 2009, $47.7m in 2010 and $83.3m in 2011 from local and brand advertising as well as other services.

However, as with so many of the new crop of publicly outing internet firms, the company has yet to turn a profit. Its losses before tax in the last three years have been growing along with its revenues, dropping $2.3m in 2009, $9.5m in 2010 and a sizeable $16.7m last year.

Announcement of a pricing usually indicates that a firm is close to actually going public, putting Yelp onto the market in the midst of the pants-wetting investor excitement over Facebook's IPO, which is due in May or June.

Compared to Facebook, Yelp's IPO is extremely modest - since the social network is expected to pull in a share price that will value the firm at between $75bn and $100bn - but there are still concerns surrounding the issue.

With no profits yet and high sales and marketing expenses, Yelp looks like another Groupon, LinkedIn or Zynga - companies with the potential to make big piles of money, but not a whole lot of evidence of it so far. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.