YELP INCYELP
YELP INC Segments Disclosure
INFORMATION ABOUT SEGMENT, REVENUE AND GEOGRAPHIC AREAS
The Company considers operating segments to be components of the Company for which separate financial information is available and evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has determined that it has a single operating and reporting segment managed on a consolidated basis. The single segment generates substantially all of its revenue from the sale of performance-based advertising products through its advertising platform. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer assesses performance for the single segment and decides how to allocate resources based on net income, which is reported on the consolidated statements of operations as net income attributable to common stockholders. Net income is used to monitor budget versus actual results. The measure of segment assets is reported on the consolidated balance sheets as total assets.
The following table presents a reconciliation of segment net income to net income attributable to common stockholders for the periods presented (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Net revenue | $ | 1,464,955 | $ | 1,412,064 | $ | 1,337,062 | |||||||||||
Less: | |||||||||||||||||
Employee expenses (exclusive of stock-based compensation)(1)(3) | 736,665 | 693,614 | 677,829 | ||||||||||||||
Cost of revenue (exclusive of depreciation and amortization and stock-based compensation) | 138,561 | 118,475 | 108,955 | ||||||||||||||
Stock-based compensation | 133,993 | 158,193 | 173,451 | ||||||||||||||
Other segment items(2)(3) | 201,615 | 218,415 | 229,561 | ||||||||||||||
Depreciation and amortization | 50,092 | 40,407 | 42,184 | ||||||||||||||
Provision for income taxes | 58,429 | 50,110 | 5,909 | ||||||||||||||
Segment net income | 145,600 | 132,850 | 99,173 | ||||||||||||||
Reconciliation of segment net income to net income attributable to common stockholders | |||||||||||||||||
Adjustments and reconciling items | — | — | — | ||||||||||||||
Net income attributable to common stockholders | $ | 145,600 | $ | 132,850 | $ | 99,173 | |||||||||||
(1) Includes expenses related to employees working in the sales and marketing, product development and general and administrative departments and excludes expenses related to employees working in the infrastructure department whose costs are included in the cost of revenue (exclusive of depreciation and amortization and stock-based compensation) line.
(2) Includes marketing, facilities, travel and entertainment, consulting and professional services, hardware and software, credit losses, litigation settlement, asset impairment, other operating expenses and other income (expense).
(3) Prior period segment information has been recast to conform to the way the Company internally managed and monitored its business during 2025. The recast of prior period information had no impact on the Company’s consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows.
Net Revenue
When the Company communicates results externally, it disaggregates net revenue into major product lines and primary geographical markets, which is based on the billing address of the customer. The disaggregation of net revenue by major product lines is based on the type of service provided and also aligns with the timing of revenue recognition for each. To reflect the Company’s strategic focus on creating differentiated experiences for its Services categories and Restaurants, Retail & Other categories, the Company further disaggregates advertising revenue to reflect these two high-level category groupings. The Services categories consist of the following businesses: home, local, auto, professional, pets, events, real estate and financial services. The Restaurants, Retail & Other categories consist of the following businesses: restaurants, shopping, beauty & fitness, health and other.
The following table presents the Company’s net revenue by major product line (and by category for advertising revenue) for the periods presented (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Services | $ | 947,564 | $ | 879,092 | $ | 793,112 | |||||||||||
| Restaurants, Retail & Other | 443,696 | 469,928 | 483,406 | ||||||||||||||
Total advertising | 1,391,260 | 1,349,020 | 1,276,518 | ||||||||||||||
Other | 73,695 | 63,044 | 60,544 | ||||||||||||||
| Total net revenue | $ | 1,464,955 | $ | 1,412,064 | $ | 1,337,062 | |||||||||||
During the years ended December 31, 2025, 2024 and 2023, no individual customer accounted for 10% or more of consolidated net revenue.
The following table presents the Company’s net revenue by major geographic region for the periods presented (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 1,455,256 | $ | 1,401,531 | $ | 1,327,263 | |||||||||||
| All other countries | 9,699 | 10,533 | 9,799 | ||||||||||||||
| Total net revenue | $ | 1,464,955 | $ | 1,412,064 | $ | 1,337,062 | |||||||||||
Long-Lived Assets
The following table presents the Company’s long-lived assets by major geographic region as of December 31, 2025 and 2024 (in thousands):
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| United States | $ | 88,256 | $ | 71,641 | |||||||
| All other countries | 3,429 | 4,028 | |||||||||
| Total long-lived assets | $ | 91,685 | $ | 75,669 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.