Yelp Inc.

Hello everyone and a warm welcome to the Yelp third quarter 2021 earnings call. My name is Simona and I'll be coordinating your call today. If you would like to register a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. With that, I have the pleasure of handing you over to your host, James Milne, Senior Vice President of Finance and Investor Relations to begin. Please go ahead, James.

Good afternoon, everyone, and thanks for joining us on Yelp's third quarter 2021 earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman, Chief Financial Officer, David Schwarzbach, and Chief Operating Officer, Jed Nockman. We published the shareholder letter on our investor relations website and with the SEC, 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 future events. In addition, we are subject to a number of risks may significantly impact our business and financial results please refer to our sec firings 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-gap 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 filings 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 had another strong quarter of consistent execution. Our teams continued to deliver on our strategic initiatives, resulting in net revenue growth of 22% from the third quarter of 2020 to $269 million, and equal to our best quarterly performance ever. At the same time, our more efficient business model means that much of this strong revenue performance flowed through to the bottom line. We delivered positive net income of $18 million and record adjusted EBITDA of $71 million, representing a 26% adjusted EBITDA margin. Underlying this performance, advertising revenue from services businesses increased by 18% year over year, driven by the continued progress our teams made to improve monetization and deliver more value to our advertisers. At the same time, advertising revenue from restaurants, retail, and other increased by 28% year over year, despite a slowdown in the pace of reopening. We believe that there is significant room for further recovery in these categories as the effects of the pandemic subside. Consumers have continued to turn to Yelp for trusted local content, which includes up-to-date important local business information. In the third quarter, we launched several new attributes to enable businesses to communicate vaccine requirements to their customers, which have been well-received. Our trusted content gives consumers the confidence to connect and transact with local businesses. For example, Dyners seeded via Yelp more than doubled year over year. while request-to-quote requests increased by nearly 10% year over year. In summary, the progress on our strategic initiatives and our third quarter results underscores that Yelp is a stronger and more efficient business than ever before, despite continued pandemic-related impacts to local businesses in many of our core categories. While we anticipate that the macro environment will continue to fluctuate in the short term, we are excited about the long-term opportunities ahead and remain confident in our team's ability to execute. With that, I'd like to turn it over to David.