Yelp Inc (YELP)
Net profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 132,850 | 118,036 | 137,812 | 114,505 | 99,173 | 91,912 | 42,804 | 36,084 | 36,347 | 39,392 | 48,349 | 44,552 | 39,671 | 37,570 | 18,485 | -9,717 | -19,424 | -23,361 | -12,280 | 24,013 |
| Revenue (ttm) | US$ in thousands | 1,412,064 | 1,392,488 | 1,377,266 | 1,357,376 | 1,337,062 | 1,303,789 | 1,267,558 | 1,229,316 | 1,193,506 | 1,157,803 | 1,118,067 | 1,076,371 | 1,031,839 | 991,634 | 943,286 | 855,128 | 872,933 | 908,561 | 950,228 | 1,028,153 |
| Net profit margin | 9.41% | 8.48% | 10.01% | 8.44% | 7.42% | 7.05% | 3.38% | 2.94% | 3.05% | 3.40% | 4.32% | 4.14% | 3.84% | 3.79% | 1.96% | -1.14% | -2.23% | -2.57% | -1.29% | 2.34% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $132,850K ÷ $1,412,064K
= 9.41%
The net profit margin measures the percentage of revenue that translates into net income after accounting for all expenses. Looking at the historical data provided for Yelp Inc, the net profit margin has shown variability over time.
In the first quarter of 2020, the net profit margin stood at 2.34%, indicating that out of every dollar of revenue generated, the company retained $0.0234 as profit. However, by the following quarter in June 2020, the net profit margin turned negative at -1.29%, signifying that the company experienced a loss.
The negative trend continued through the subsequent quarters of September and December 2020, with net profit margins of -2.57% and -2.23% respectively. This suggests that during this period, Yelp Inc was unable to generate enough profit to cover its expenses.
From March 2021 onwards, the net profit margin started to improve gradually, reaching positive territory in June 2021 at 1.96%. Subsequently, the company was able to maintain positive net profit margins, showing steady improvement over the following quarters until December 2024, where the net profit margin reached 9.41%.
Overall, the fluctuation in net profit margin indicates the company's ability to manage costs and generate profit from its operations. The increasing trend from 2021 to 2024 reflects Yelp Inc's efforts to enhance efficiency and profitability, potentially signaling positive growth and financial health for the company. However, it's essential for investors and stakeholders to monitor these trends closely to assess the company's financial performance.
Peer comparison
Dec 31, 2024