Yelp Gains But Wall Street Still Says ‘Show Me’
- Targets 30% to 35% Ebitda margin by 2023, sets $250m buyback
- Revamped governance, cost cuts, buyback followed activist ire
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Yelp’s fourth-quarter results came in above the Street’s consensus, but some analysts remained focused instead on management’s moves to address recent criticism from activist investor SQN Investors LP.
Yelp management targeted a 30 to 35 percent Ebitda margin, and authorized a $250 million share buyback. Cowen said investors are still concerned about advertiser churn as Paid Advertiser Accounts declined more than expected.