Yelp Inc.

Good day and welcome to Yelp's third quarter 2020 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your touch-tone phone. and to withdraw your question, please press star then two. Please note this event is being recorded. At this time, I'd like to turn the conference over to James Milne, Vice President of Finance and Investor Relations. Please go ahead.

Good afternoon, everyone, and thanks for joining us on Yelp's third quarter earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman, Chief Financial Officer David Schwarzbach and Chief Operating Officer Jed Nachman. We published a shareholder letter on our investor relations website and with the SEC about an hour ago and I hope everyone had a chance to read it. We'll provide some brief opening comments and then turn to your questions. Now I'll read our safe harbor statement. We'll make certain statements today that are forward looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward looking statements reflect our opinions only as of the date of this call and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or further events. In addition, we are subject to a number of risks that may significantly impact our business and financial results. These refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results. During our call today, we'll discuss adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles. In our shareholder letter released this afternoon and our findings with the SEC, each of which is posted on our website, you will find additional disclosures regarding these non-GAAP financial measures, as well as historical reconciliations of GAAP net income to both adjusted EBITDA and adjusted EBITDA margin. And with that, I will turn the call over to Jeremy.

Thanks, James, and welcome, everyone. Yelp's third quarter results demonstrate our business's considerable resilience. Although we clearly remain in the midst of a pandemic, in the third quarter we were excited to see significantly improved business performance from the second quarter and signs that our long-term strategy is working. Third quarter net revenue grew by 31% from the second quarter as both consumers and local businesses turned to Yelp as their trusted resource for adapting to the new normal. This revenue, coupled with strong expense management, enabled us to deliver a 24% adjusted EBITDA margin demonstrating our ability to perform under the most challenging of circumstances. Traffic and engagement trends showed robust improvements in the third quarter. Overall page views and searches increased by approximately 40% from the second quarter, while app-unique devices rebounded by 4 million from the second quarter to 32 million. Consumers turned to Yelp for our trusted content and added more than 5 million reviews in the third quarter. Our balanced ratings and high-quality reviews continue to differentiate us from competitors. In fact, a recent study authored by an economist at the Federal Trade Commission highlighted Yelp's robust review content and significant efforts to combat review fraud. As a complement for our valuable review content, Yelp has put a focus on providing the most up-to-date local business information through our COVID-19 features. For example, our health and safety measures section has been particularly well received, with more than 700,000 business locations leveraging it by the end of October. We have also continued to make progress on our long-term strategy, which is designed to drive increased revenue growth and profitability. In the third quarter, we saw positive year-over-year revenue growth in two key areas, home and local services and our self-serve sales channel. With approximately 20% of leads monetized in the home and local services category by the end of the quarter, we continue to see a substantial opportunity to further monetize our consumers' high purchase intent leads. To support the execution of our long-term strategy and to diversify and continue to refresh our board's expertise, we have welcomed four accomplished independent directors over the last two years. Today, I'm pleased to announce another fantastic addition to Yelp's board, Tony Wells. As Chief Brand Officer at USAA, Tony brings a wealth of experience, which will be particularly valuable if we continue to evolve our go-to-market capability and expand our self-serve channel as part of our next phase of growth. While we hope that the worst of COVID-19's economic impact is behind us, Yelp remains focused on the continued execution of its strategy. In the third quarter, we demonstrated a more efficient go-to-market capability and made progress on our strategic growth initiatives while improving our already strong balance sheet. As the pandemic subsides, we are confident in our ability to return to sustainable growth in the new year. With that, I'd like to turn it over to David.