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Yelp’s CFO To Resign Following $22 Million Loss

February 9, 2016 - Written By Kishalaya Kundu

The Chief Financial Officer of Yelp will be resigning from his position later this year, according to an announcement from the company that runs one of the most widely-cited review websites on the planet. Mr Rob Krolic, who has been with the San Francisco, CA-based internet company since 2011, is expected to remain in his position either till December 15th of this year or until Yelp is able to get a suitable replacement for him. The company, however, did not reveal any more details regarding the impending changeover in personnel. Yelp’s shares fell by as much as eleven percent on Monday after the company declared a loss of over $20 million in the quarter ending December 2015, as opposed to a profit during the same period in 2014.

Coming to those results, Yelp, on Monday, reported its Q4, 2015 results which revealed that it had suffered a $22.2 million net loss on revenues of $153.7 million, in the three months from October to December last year. The company had actually made a profit of $32.7 million during the corresponding quarter in the previous year. While the loss was lower than what most Wall Street analysts feared, it was the less-than-stellar FY2016 guidance that spooked investors resulting in the mass sell-off, taking the stock down by as much as eleven percent in a single trading session on Monday. The company is apparently expecting to turn the corner and get back into black this year, although, the expected bottom line is less than what the market would have wanted.

According to the statement released by Yelp, the adjusted EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the current quarter is expected to be in the region of $10 to $12 million, which falls significantly short of the $16.3 million figure the company had reported in the first quarter of last year. As for the whole year, the company is expecting to report an EBITDA of between $90 and $105 million in FY2016. The company also says that it expects to spend around $14 million on marketing in the current quarter, which is one of the reasons why the guidance isn’t as strong as investors would have ideally wanted it to be.