Yelp Inc. today announced its financial results for the first quarter ended March 31, 2025, reporting net revenue of $358.5 million, an 8% increase year-over-year. This figure exceeded the high end of the company's outlook range. Net income attributable to common stockholders surged 72% year-over-year to $24.4 million, reflecting a 7% margin.
Adjusted EBITDA grew 32% year-over-year to $84.9 million, resulting in a 24% adjusted EBITDA margin, a four-percentage-point improvement from the prior year period. This strong profitability was driven by disciplined expense management and the robust performance of the Services segment.
Services revenue continued its impressive trajectory, growing 14% year-over-year to $231.6 million, marking the 16th consecutive quarter of double-digit growth. For the first time, Services paying advertising locations, at 261,000, surpassed Restaurant, Retail & Other (RR&O) locations, which stood at 256,000 and declined 8% year-over-year.
The average cost-per-click (CPC) increased 9% year-over-year, primarily due to strong advertiser demand within the Services categories, despite overall ad clicks decreasing by 3%. Other revenue also contributed positively, increasing 9% year-over-year to $16.5 million.
Looking ahead, Yelp provided an outlook for the second quarter of 2025, anticipating net revenue in the range of $362 million to $367 million and adjusted EBITDA between $84 million and $89 million. For the full year 2025, the company modestly widened its net revenue guidance to $1.465 billion to $1.485 billion and expects full-year adjusted EBITDA between $345 million and $365 million.
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