Yelp extrem überbewertet

Yelp has only the 2.4-fold revenues of Local Corp, but the 91-fold market-cap of competitor Local Corp  

Income Statement of Local Corp (Market Cap = 45.3 million):

• Sequential revenue growth up 6% to $22.7 million in Q2 from $21.5 million in Q1

• Adjusted EBITDA up 72% to $1.2M in Q2 from $685K in Q1

Income Statement of Yelp (Market Cap = 4,120 million)

• Net revenue was $55.0 million in the second quarter

• Adjusted EBITDA for the second quarter of 2013 was approximately $7.8 million, compared to $1.6 million for the second quarter of 2012.  

Saturation-effects will hurt Yelp very strong and why Shop by Local from Local Corp is a more sustanainable business-model.

First some questions:

Do you use Yelp once more and more again after you had fund an excellent restaurant with the help of Yelp?

Do you use Yelp once more and more again after you had fund an excellent hairdresser with the help of Yelp?

I believe this to questions are enough and I can now stop my questions, because everybody can easy understand, that the business-model of Yelp will be hurt very strong from saturations-effects.

But if you had bought a new product with the help of Shop by Local, you will do by the next buy the same, if you look for a buy of a new product again. Saturationeffects like by Yelp don't exist by Shop by Local from Local Corp.  

Bewertung:

Growth-rate of revenues of Yelp is between bad and miserable

Strong growth (on a yearly base) of 37% of Local Corp in the second half of 2013 against only 30% of Yelp

We know the revenues of Local Corp of Q1/2013 of 21.5 million and Q2/2013 of 22.7 million = 44.2 million in the first half of 2013. And we know, that Local Corp had increased the guidance for the revenues in 2013 some weeks ago from 93 - 95 million to 95 - 97 million. If we now subtract from 96 million revenues in 2013 the 44.2 million revenues of the first half of 2013 = 51.8 million revenues for the second half of 2013 - that are an increase from the first half of 2013 to the second half of 2013 of 17,2%. That are on yearly base 37% (1,172 * 1,712 = 1.37....%). .

The growth of Yelp with a higher valuation with the factor 47 (if Local Corp were valued like Yelp, the market-cap would be 1,979 million) is only 30.6% on yearly base (6.9% from Q2/2013 to Q3/2013: 1,069 * 1,069 * 1,069 * 1,069) against the 37% of Local Corp.

Besser als Twitter und Yelp

 

21:13

#5850



Growth of the revenues of the network-division of Local Corp (now 61% of all revenues of Local Corp) beats the growth-rates of the revenues of Twitter and Yelp

Revenues of the Network-Division of Local Corp:
Q3-12 5.0 million
Q4-12: 7.6 million
Q1-13: 8.3 million
Q2-13: 11.6 million
Q3-13: 14.5 million Less

Reveneus of Q3-13 are the 2.9-fold of the revenues of Q3-12.