Yelp Inc.

I'll now turn the conference over to James Milne, Senior Vice President, Finance and Investor Relations. Please go ahead.

Good afternoon, everyone, and thanks for joining us on Yelp's third quarter 2023 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 course 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, adjusted EBITDA margin, and free cash flow, 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 of 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 the just a bit dark and adjusted EBITDA margin, and a historical reconciliation of gap cash flows from operating activities to free cash flow. And with that, I will turn the call over to Jeremy.

Thanks, James, and welcome, everyone. Yelp delivered its 10th consecutive quarter of double-digit revenue growth, a testament to our product initiatives and consistent execution. We grew net revenue by 12% year over year to a record $345 million. We delivered this performance while also expanding net income margin by 14 percentage points and adjusted EBITDA margin by 4 percentage points from the prior year period. Profitable growth was generated across the business as our teams continued to innovate and execute against our product roadmap. This resulted in record advertising revenue in both of our broad categories, services and restaurants, retail, and others. Services was particularly strong, with advertising revenue up 14% year-over-year, led by approximately 20% year-over-year growth in home services. At the same time, our R&O advertising revenue growth remained robust, up 10% year-over-year. With record advertising demand in the quarter, our efforts to deliver more valued advertisers has clearly resonated. The product improvements we've made to enhance our ad formats and ad system drove more high-quality clicks to our customers in the third quarter. In fact, ad clicks returned to year-over-year growth, increasing by 9% from the prior year period, a marked improvement from flat year-over-year growth in the second quarter. At the same time, year-over-year growth in average CPC moderated compared to the second quarter at 4%. We also made progress against our initiative to drive sales through our most efficient channels, Self-serve revenue increased by 25% year over year, while multi-location revenue increased by 10% year over year. At a combined 51% of advertising revenue, we continue to see significant opportunities to grow each channel in the years ahead. In summary, Yelp delivered another great performance in the third quarter. As our product-led strategy continues to strengthen our business and our team executes against our plan, we have even more conviction in the durability of Yelp's consistent growth. Looking ahead, I continue to see tremendous opportunities for innovation and profitable growth and remain focused on generating long-term shareholder value. With that, I'd like to turn it over to David.