Yelp Inc (YELP)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,288,380 | 1,222,830 | 1,087,800 | 953,742 | 815,747 |
| Revenue | US$ in thousands | 1,412,060 | 1,337,060 | 1,193,510 | 1,031,840 | 872,933 |
| Gross profit margin | 91.24% | 91.46% | 91.14% | 92.43% | 93.45% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,288,380K ÷ $1,412,060K
= 91.24%
Based on the data provided, Yelp Inc's gross profit margin has shown a consistent downward trend over the period from December 31, 2020, to December 31, 2024. The gross profit margin started at 93.45% in 2020 and gradually decreased to 91.24% by the end of 2024.
This decline indicates that Yelp Inc's cost of goods sold as a percentage of revenue has been increasing relative to its gross profit, which could be a concerning trend. It is essential for the company to assess its cost structure and pricing strategies to maintain a healthy level of gross profit margin, which is crucial for sustaining profitability and future growth. Continued monitoring and analysis of the financial performance metrics will be key for Yelp Inc to make informed strategic decisions moving forward.
Peer comparison
Dec 31, 2024