Yelp Results Presentation Deck
($mm)
Adjusted EBITDA Bridge
Net Income / (Loss)
+ Tax & Other
Expenses
+ Depreciation &
Amortization
+ Stock Based
Compensation*
+ Restructuring &
Integration
Adjusted EBITDA reconciliation
2012
($19.1)
0.3
7.2
14.9
1.3
2013
$4.6
1.2
($10.1) $36.5 ($32.9)
11.5
26.1
0.7
2014
$29.4
(25.4)
17.6
42.3
0.0
2015
$70.9
11.6
29.6
60.8
0.0
Q1
$69.1
($1.3)
(3.0)
6.9
13.7
0.0
$16.3
2015
Q2
($1.3)
1.4
7.2
15.5
0.0
Q3
$22.7
($8.1)
(2.6)
7.6
15.7
0.0
Q4
$12.5
($22.2)
15.8
8.0
16.0
0.0
2016
$17.5
Q1
($15.4)
1.2
8.2
19.1
Adjusted EBITDA
This presentation includes adjusted EBITDA, a non-GAAP financial measure that Yelp uses to evaluate its business. Yelp includes adjusted EBITDA because it is a key
measure used by Yelp's management and board of directors to understand and evaluate core operating performance and trends, to prepare and approve its annual
budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted EBITDA can provide a useful
measure for period-to-period comparisons of Yelp's core business. Accordingly, Yelp believes that adjusted EBITDA provides useful information to investors and
others in understanding and evaluating Yelp's operating results in the same manner as its management and board of directors. Adjusted EBITDA 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. You can read more about the
limitations of adjusted EBITDA 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 alongside other financial performance measures, including various cash flow
metrics, net income (loss) and Yelp's other GAAP results.
0.0
Q2
$13.0
$0.4
(1.6)
8.6
20.7
0.0
$28.1
Additionally, Yelp has not reconciled its adjusted EBITDA outlook for the third quarter and full year 2016 to its net income (loss) outlook because it does not provide
an outlook for other income (expense) and provision for income taxes, which are reconciling items between net income (loss) and adjusted EBITDA. As items that
impact net income (loss) are out of Yelp's control and cannot be reasonably predicted, Yelp is unable to provide such an outlook. Accordingly, reconciliation to net
income (loss) outlook for the third quarter and full year 2016 is not available without unreasonable effort.
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