Online reviews site Yelp filed for an IPO today, elbowing to get in line while also taking some of the thunder away from fellow business-reviewer Angie’s List, which debuted in a big way.
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The breakdown by industry of local businesses that have received reviews on Yelp’s platform through Sept. 30.
Here’s a quick look at the filing by the numbers:
- 2010 REVENUES: $58.4 million: Revenue for the nine-month period ended Sept. 3o, up 79% from a year ago. That’s slightly less than the $63 million Angie’s List reported for the period. At that growth rate, Yelp’s revenue for 2011 would be roughly $86 million. Local advertising represents 69% of this year’s revenue, with brand ads taking 22% and “other services”–we’re talking Yelp Deals and various partnerships–grabbing 9%.
- 2009 REVENUES: $22 million: Reviews on Yelp’s platform as of Sept. 30, up 66% from the year earlier.
- 2010 EARNINGS: $7.6 million loss: The loss for the nine months, which is slightly narrower from the $8.6 million loss in the year-ago period. Yelp’s adjusted Ebitda loss sat at $1.1 million.
- INVESTORS CASHING OUT: $37 million: The amount of money cashed out by six founders and executives in February 2010 when private equity firm Elevation Partners bought shares in addition to funding the company with $25 million. Paypal alum and Yelp seed funder Max Levchin and CEO/founder Jeremey Stoppelman sold the most stock, each reaping $15 million in the deal. When that deal was announced, Elevation said it would buy as much as $75 million worth of stock. We guess there weren’t enough takers.
- VENTURE CAPITAL FUNDING: $55 million: Funding raised from venture capital firms Bessemer Venture Partners, Benchmark Capital, DAG Ventures and Elevation Partners from 2005 to 2010 over five rounds.
- VC STAKES IN YELP : 22.5%: Bessemer’s stake in Yelp as the largest shareholder, and its first, investing in 2005. Elevation is right behind with a 22.4% stake, while Benchmark owns 16.2%. DAG isn’t listed in the filing as owning at least 5%. Interestingly, Levchin owns a larger stake (13.8%) than Stoppelman (11.1%).
- KEY METRICS:
- UNIQUE VISITORS: 61 million: Unique visitors as of Sept. 30, up 63%.
- NO OF REVIEWS: 22 million: Reviews as of Sept. 30, up 66% from prior year.
- LOCAL BUSINESS LOCATIONS: 529 million: Local business locations, up 114% from prior year.
- SALES & MARKETING COSTS: $15 million: The amount Yelp expects to spend on sales and marketing internationally in 2012, mostly to hire sales staff.
COMMENTARY: You can view Yelp's S-1 Registration Statement for their IPO HERE. Below is Yelp's Consolidated Statement of Operations and Balance Sheet:
Consosolidated Statement of Operations:
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Sources of Revenues and Advertising Expense as a Percentage of Each Revenue Source:
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Yelp Consolidated Balance Sheets:
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Stockholders Cashing Out Including No of Shares Sold and Proceeds Received:
- Jeremy Stoppelman: 7,375,000 shares for $15,000,750
- Geoff Donaker: 1,932,987 shares for $3,931,696
- Jed Nachman: 539,044 shares for $1,096,416
- Laurence Wilson: 339,863 shares for $691,281
- Max Levchin: 7,389,162 shares for $15,029,556
- Vlado Herman: 533,157 shares for $1,084,441
Majority Inside and Outside Stockholders:
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Overall Financial Condition of Company:
Yelp has been able to consistently grow revenues, but has never made a profit and has never made a profit. Yelp has total accumulated losses of $32. 149 million since inception and is carrying total a total accumulated stockholder's deficit of $23.863 million as of September 30, 2011.
Working capital does not appear to be a problem. Yelp has a healthy current ratio of 3.1-to-1 which is considerably better than Angie's List, which had its IPO on Wednesday, November 16, 2011. Yelp has cash and equivalents of $23.128 million as of September 30, 2011. Yelp has no long-term debt. The VC's own 61.1% of total commaon shares outstanding. Officers and employees own the remainder.
If Yelp has an IPO it will most likely occur in early 2012.
Courtesy of an article dated November 17, 2011 appearing in The Wall Street Journal's Venture Capital Dispatch
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