Yelp Inc.

Good afternoon. Thank you for attending today's Yelp first quarter 2022 earnings call. My name is Hannah and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, James Milne, SVP of Finance and Investor Relations of Yelp. Please go ahead.

Good afternoon, everyone, and thanks for joining us on Yelp's first quarter 2022 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 a 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 harvest 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 that may significantly impact our business and financial results. Please 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 filings for 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 a great first quarter. We continue to see strong momentum from our product-driven growth strategy as net revenue increased quarter over quarter and by 19% year over year to a record $277 million. Advertisers across both categories and channels showed increased demand for our expanded portfolio of ad products, and paying advertising locations reached a pandemic high. Advertising revenue from services businesses increased 14% year over year to a quarterly high of $160 million. reflecting record revenue per location. At the same time, advertising revenue from restaurants, retail, and other businesses continued to recover, increasing 27% year over year. We also made further progress on our initiative to drive sales through our most efficient channels. Driven by record acquisition and strong retention, self-serve channel revenue increased by more than 30% year over year to reach a new high in the first quarter. At the same time, we saw robust demand for our expanded portfolio of ad products for multi-location advertisers. Multi-location channel revenue increased by more than 35% year-over-year. Together, these channels represented 46% of advertising revenue in the first quarter. Beyond these results, our team remains focused on advancing our strategic initiatives, which are designed to drive sustainable and profitable growth in the long term through an elevated pace of product innovation. We made early progress in the first quarter as we worked to advance our 2022 priorities. To grow quality leads and monetization in services, drive sales through the most efficient channels, deliver more value to advertisers, and enhance the consumer experience. In summary, our first quarter results reaffirm the strength and breadth of both our platform and initiatives amid a volatile environment, providing us with continued confidence in our ability to deliver on our plan and drive profitable growth in 2022. We're excited about the opportunities ahead to connect people with great local businesses and remain committed to delivering long-term shareholder value. With that, I'd like to turn it over to David. Thanks, Jeremy.