Investor Presentaiton
Adjusted EBITDA reconciliation
Appendix
($ in millions)
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Net Income/ (Loss)
($10.1)
$36.5
($32.9)
($1.7)
$153.0
$55.4
$40.9
($19.4)
$39.7
$36.3
$99.2
1
1
1
+ Tax & Other Income, Net
1.2
(25.5)
11.6
(0.4)
26.6
(29.5)
(5.4)
(19.4)
(8.2)
22.0
(20.1)
+ Depreciation & Amortization
11.5
17.6
29.6
35.3
41.2
42.8
49.4
50.6
55.7
44.9
42.2
+ Stock Based Compensation
26.1
42.3
60.8
86.3
100.4
114.4
121.5
124.6
151.7
156.1
173.5
- 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
0.0
0.0
+ Restructuring & Integration
0.7
0.0
0.0
+ Fees Related to Shareholder
0.0
0.0
Activism
gg
3.5
0.3
0.0
0.0
3.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.1
0.0
0.0
0.0
1.3
+ Litigation Settlement
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
11.0
+ Asset Impairment
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
11.2
10.5
23.6
+ Gain on Lease Termination,
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
(3.7)
0.0
0.0
Net
Adjusted EBITDA
$29.4
$70.9
$69.1
$123.0
$157.8
$183.1
$213.5
$140.3
$246.3
$269.8
$330.5
/ Net Revenue
$233.0
$377.5
$549.7
$716.1
$850.8
$942.8
$1,014.2
$872.9
$1,031.8
$1,193.5
$1,337.1
Net Income (Loss) Margin
(4.3%)
9.7%
(6.0%)
(0.2%)
18.0%
5.9%
4.0%
(2.2%)
3.8%
3.0%
7.4%
Adjusted
12.6%
18.8%
12.6%
17.2%
18.5%
19.4%
21.1%
16.1%
23.9%
22.6%
24.7%
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.
1 Amounts have not been recast in accordance with Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (ASC 606)."
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