Yelp Inc. - Trusted Content and Sustainable Growth Strategy slide image

Yelp Inc. - Trusted Content and Sustainable Growth Strategy

Adjusted EBITDA reconciliation Appendix ($ in millions) 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net Income (Loss) ($10.1) $36.5 ($32.9)' ($1.7) $153.0 $55.4 $40.9 ($19.4) $39.7 + Tax & Other Income, Net 1.2 (25.5) 11.6 (0.4) 26.6 (29.5) (5.4) (19.4) (8.2) + Depreciation & Amortization 11.5 17.6 29.6 35.3 41.2 42.8 49.4 50.6 55.7 + Stock Based Compensation 26.1 42.3 60.8 86.3 100.4 114.4 121.5 124.6 151.7 - Gain on Disposal of a Business Unit 0.0 0.0 0.0 0.0 (163.7) 0.0 0.0 0.0 0.0 + Restructuring & Integration 40 0.7 0.0 0.0 3.5 0.3 0.0 0.0 3.9 0.0 + Fees Related to Shareholder Activism 0.0 0.0 + Asset Impairment 0.0 gg 0.0 0.0 0.0 0.0 7.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 11.2 + Gain on Lease Termination, Net 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (3.7) Adjusted EBITDA $29.4 $70.9 $69.1 $123.0 $157.8 $183.1 $213.5 $140.3 $246.3 /Net Revenue $233.0 $377.5 $549.7 $716.1 $850.8 $942.8 $1,014.2 $872.9 $1,031.8 Net Income (Loss) Margin (4.3%) 9.7% (6.0%) (0.2%) 18.0% 5.9% 4.0% (2.2%) 3.8% Adjusted 12.6% 18.8% 12.6% 17.2% 18.5% 19.4% 21.1% 16.1% 23.9% EBITDA Margin We define Adjusted EBITDA as Net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items. We define Adjusted EBITDA margin as Adjusted EBITDA divided by Net revenue. This presentation includes Adjusted EBITDA and Adjusted EBITDA margin, each of which is a "non-GAAP financial measure." Adjusted EBITDA is not prepared under any comprehensive set of accounting rules or principles, has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of Yelp's results as reported under GAAP. In particular, Adjusted EBITDA should not be viewed as a substitute for, or superior to, GAAP Net income (loss) as a measure of profitability of liquidity. You can read more about the limitations of Adjusted EBITDA, as well as the basis of presentation of the numbers in the table above, in Yelp's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at www.yelp-ir.com or the SEC's website at www.sec.gov. Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including various cash flow metrics, Net income (loss) and Yelp's other GAAP results. Amounts have not been recast in accordance with Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (ASC 606)." 39
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