Yelp Inc.

Good afternoon. My name is Brianna and I will be your conference operator today. At this time, I would like to welcome everyone to the Yelp Inc. Q1 2024 earnings conference call. Please note that this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, please press star one a second time. I will now turn today's call over to Josh Willis, Yelp Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us on Yelp's first quarter 2024 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 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 risk factors that may affect our results. During our call today, we may 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 with the SEC, each of which is posted on our investor relations website, you will find additional disclosures regarding these non-GAAP financial measures as well as historical reconciliations of GAAP net income loss to both adjusted EBITDA and adjusted EBITDA margin, and a historical reconciliation of GAAP cash flow from operating activities to free cash flow. And with that, I will turn the call over to Jeremy.

Thanks, Josh, and welcome, everyone. As we approach 20 years of helping people connect with great local businesses, I am proud of the impact Yelp has had on the many communities we serve. We continue to lean into our strategic focus on services categories, and we have already seen momentum in our efforts to deliver the best home services experience for consumers and pros. In the first quarter, net revenue increased by 7% year over year to $333 million. Net income was $14 million, reflecting a 4% margin An adjusted EBITDA increased by 19% year-over-year to $64 million, representing a 19% margin. These results reflect our efforts to improve profitability, even as we continue to invest in our strategic growth initiatives. While businesses in our restaurant, retail, and other categories continue to face a challenging operating environment in the first quarter, Home Services was again a standout performer, with approximately 15% year-over-year revenue growth. Advertising revenue in our services categories grew 11% year over year. Request-to-quote projects increased by approximately 20% year over year in the first quarter, reflecting early positive results from our acquisition of services projects through search engine marketing, as well as continued strength from organic consumer demand. In key categories like movers, we have seen significant increases in request-to-quote projects and ad clicks as well as a meaningful decline in average CPCs. These promising results were largely driven by our paid project acquisition efforts, and as a result, we plan to continue investing to capture more of the large market opportunity in services. As we continue to execute against our robust product roadmap, we introduced more than 15 new features and updates in April. One standout in services is our new LLM-powered Yelp Assistant. This conversational AI can more accurately interpret a consumer's needs, collect relevant project information in a user-friendly way, and deliver an even more targeted lead to service pros. We also see a broad set of opportunities to bring our trusted content to consumers in new ways. This includes our Yelp Fusion AI API, a new LLM-powered solution enabling partners to tap into Yelp's trusted content. This tool enhances discovery on third-party platforms through natural language search across our broad range of categories, including both services and RR&O, expanding Yelp's reach and utility across the web. We believe these new offerings, along with dozens of other AI-powered initiatives on our roadmap, will transform how consumers and businesses connect on Yelp. In summary, Yelp's first quarter results marked a solid start to the year, and I continue to be excited about the depth and breadth of our robust product roadmap, particularly in services. Overall, we remain confident in our strategy to drive long-term profitable growth and shareholder value. With that, I'll turn it over to David.