Yelp Inc.

Hello and welcome to Yelp's second quarter 2022 earnings call. My name is Maxine and I'll be coordinating today's call. If you would like to ask a question, you may do so by pressing star followed by one on your telephone keypad. I will now hand you over to your host, James Milne, Senior Vice President, Finance and Investor Relations to begin. James, please go ahead when you're ready.

Good afternoon, everyone, and thanks for joining us on Yelp's second 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 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 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 risks 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 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. Our second quarter results show that our product-led strategy is delivering just what advertisers need in a time of economic uncertainty. Add products that connect them with a large and high intent audience that provides measurable performance. Advertisers spent at record levels with Yelp in the second quarter. Net revenue increased by 16% year over year to a quarterly record of 299 million. I'm extremely proud of our teams across Yelp for consistently delivering against our strategic initiatives and continuing to make Yelp a leading platform for consumers to connect with great local businesses. Underlying this strong top line performance, our initiatives drove record use of our products in the second quarter. Paying advertising locations surpassed pre-pandemic levels to reach 569,000, while average revenue per location also reached a new record. Advertising revenue from services businesses increased 14% year over year to a high of 174 million, driven by strength in the home services category. Even amid shifts in U.S. consumer spending, users continue to turn to Yelp's trusted content when making important spending decisions for their homes. We believe that we still have a long runway in this large category. Advertising revenue from restaurants, retail, and other businesses grew 18% year over year, largely driven by an increase in paying advertising locations. Our multi-location channel was a strong contributor to the continued recovery in RR&O in the second quarter with revenue growth of approximately 30% year over year. Our expanded portfolio of ad products and attribution solutions is helping multi-location advertisers reach our valuable high intent audience, both on and off Yelp. Our performance in the second quarter demonstrates the power of our owned and operated ad platform. We've consistently executed against our strategic initiatives and transformed our business. The opportunities ahead remain significant, and we are better equipped than ever to drive long-term profitable growth. With that, I'd like to turn it over to David.