Yelp Inc (YELP)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 99,173 | 36,347 | 39,671 | -19,424 | 40,881 |
| Revenue | US$ in thousands | 1,350,660 | 1,205,530 | 1,040,560 | 880,779 | 1,018,980 |
| Net profit margin | 7.34% | 3.02% | 3.81% | -2.21% | 4.01% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $99,173K ÷ $1,350,660K
= 7.34%
Yelp Inc's net profit margin has displayed fluctuating trends over the past five years. In 2019, the company reported a net profit margin of 4.03%, indicating that it generated a profit of approximately 4.03 cents for every dollar of revenue earned. However, in 2020, the net profit margin deteriorated significantly to -2.23%, implying that the company incurred a loss equivalent to 2.23 cents for every dollar of revenue generated.
The subsequent years saw an improvement in Yelp Inc's profitability performance. By the end of 2021, the net profit margin had increased to 3.84%, signifying a healthier profit margin compared to the previous year. The positive trend continued into 2022 when the net profit margin further improved to 3.05%. Notably, in 2023 Yelp Inc's net profit margin reached 7.42%, exhibiting a substantial growth in profitability and indicating that the company was able to convert a higher proportion of its revenue into profit compared to the prior years.
Overall, the fluctuating trajectory of Yelp Inc's net profit margin highlights the company's ability to adapt and enhance its profitability over the years, potentially attributed to strategic business decisions, operational efficiencies, or changes in market conditions. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and performance.
Peer comparison
Dec 31, 2023