David A. Schwarzbach, the Chief Financial Officer of Yelp Inc. (NYSE:YELP), has sold 10,000 shares of the company's common stock, according to a recent SEC filing. The company, which maintains excellent financial health according to InvestingPro data, boasts a perfect Piotroski Score of 9 and impressive gross profit margins of 91%. The shares were sold at a weighted average price of $39.7226, resulting in a total transaction value of $397,226. This sale was conducted as part of a 10b5-1 trading plan, which Schwarzbach adopted on August 29, 2024. Following this transaction, Schwarzbach retains ownership of 201,988 shares in the company. The shares were sold in multiple transactions, with prices ranging from $39.275 to $40.09. According to InvestingPro's Fair Value analysis, Yelp currently appears undervalued, with 10 additional exclusive insights available to subscribers.
In other recent news, Yelp Inc. has reported notable developments, including mixed Q3 results and strategic acquisitions. The company recorded a net revenue of $360 million, a 4% increase year-over-year, despite a decline in restaurant, retail, and other categories. Notably, the services revenue saw an 11% increase, while the home services segment revenue grew by 15%, driven by a 25% rise in quote requests. Yelp's net income margin stood at 11%, with a 28% adjusted EBITDA margin.
In addition to financial performance, Yelp announced the completion of an $80 million cash transaction to acquire RepairPal, a platform connecting customers with certified mechanics. This acquisition is expected to expand Yelp's service offerings and presence in the auto services market. TD Securities served as the financial advisor for RepairPal, and the legal counsel was provided by Fenwick & West LLP.
Looking ahead, Yelp projects a full-year net revenue between $1.397 billion and $1.402 billion, with adjusted EBITDA expected to be between $341 million to $346 million. The company continues to focus on disciplined expense management, optimizing marketing spend, and leveraging AI to enhance customer interaction and ad matching. These recent developments underscore Yelp's strategic efforts to navigate a challenging market while pursuing growth opportunities.
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