Yelp Inc.

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2025 Yelp Incorporated earnings conference call. 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 during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Kate Krieger, Director of Investor Relations. Please go ahead.

Good afternoon, everyone, and thanks for joining us on Yelp's third quarter 2025 earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stappelman, Chief Financial Officer, David Schwarzbach, and Chief Operating Officer, Jed Nachman. We published the 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 or loss to adjusted EBITDA, GAAP net income margin to adjusted EBITDA margin, and GAAP cash flows from operating activities to free cash flow. And with that, I will turn the call over to Jeremy.

Thanks, Kate, and welcome, everyone. Yelp's transformation with AI continues to accelerate. We are reconceiving the experience on Yelp for both consumers and businesses, recently rolling out more than 35 new features and updates that leverage the power of AI in combination with our human-generated, highly trusted content. This valuable content also underpins the continued expansion of our data-like versions. Taken together, we believe our product-led strategy, along with our broad reach, will enable us to deliver on our ambitious product roadmap. and create long-term value for our shareholders. Turning to the third quarter, Yelp delivered record net revenue and strong profitability. We generated $376 million of net revenue with a net income margin of 10% and adjusted EBITDA margin of 26%. Underlying our top line results, services revenue increased by 7% year over year and drove our business performance. At the same time, the operating environment for businesses in our restaurant, retail, and other categories remain challenging. with RRO revenue declining by 2% year-over-year. We are continuing to deepen our focus on services, excluding projects acquired through our paid search initiative, request-to-quote projects increased by approximately 10% year-over-year in the third quarter, driven by improvements to the request flow in our AI chatbot, Yelp Assistant. In fact, project submissions through Yelp Assistant increased by nearly 400% year-over-year. Our product and engineering teams also recently rolled out an enhanced version of Yelp Assistant that remembers important details and preferences from past projects. In addition to Yelp Assistant, we are using AI to simplify how consumers evaluate and select the right service pros. We extended our review insights feature to services categories, created a dedicated before and after section in businesses' media galleries, and expanded our response quality badges for service pros nationwide. Beyond services, our product and engineering teams continue to leverage AI to transform the way consumers connect with great local businesses in RNO categories. We recently expanded Yelp Assistant to RNO business pages, leveraging our trusted content and information from businesses' websites to give users instant reliable answers to questions about specific businesses. This is a significant step towards delivering a comprehensive Yelp Assistant that works uniformly across all categories and entry points. We plan to begin testing our category-wide Yelp Assistant before the end of the year. We also recently launched MenuVision, an augmented reality feature that enables diners to point their camera phones at menus and view photos as well as reviews of individual dishes. In addition, we are now partnering with DoorDash as our preferred food ordering and delivery provider, expanding our food ordering network by approximately 200,000 new restaurants to a total of more than 500,000. We expect this partnership will generate incremental revenue, which will be recorded as other revenue. Lastly, we rolled out two new voice AI subscription products, Yelp Host for Restaurants and Yelp Receptionist for Services. These SaaS solutions combine LLMs with Yelp's high-quality data to provide smarter, more human-like answering services tailored with information specific to each individual business. We are excited about the potential of these incremental offerings, which we believe are best in class. Early results indicate a strong product market fit, saving restaurants and service pros significant time. In summary, our focus on services and AI products has continued to transform our business, and we remain excited by the opportunities ahead to drive profitable growth and shareholder value over the long term. With that, I'll turn it over to David.