Revenues Increase 67% For Yelp, Inc.

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Local Business Review site, 5StarControl, shines their spotlight on the announcement that Yelp reported higher than expected totals for their 2012 2nd Quarter.

5StarControl applauded when Yelp, a local business performance monitoring website, announced the amazing increase in their 2012 2nd Quarter revenues, which caused their stock to soar. 5StarControl wrote that local businesses will be overjoyed with Yelp’s 2nd Quarter sales because it proves that Yelp’s unique platform of providing real, rich content that matches customers with ideal local businesses is gaining global success. It also bodes well for Yelp’s plans for more global expansion, which began with the second quarter launch of new markets in 7 foreign countries, including Australia, Finland, Denmark, and Norway, as well as a new local market in Madison, Wisconsin, Yelp reported.

In their August 1st announcement in the Sacramento Bee, Yelp reported a 67% increase in their second quarter revenue over their 2011 earnings for the same quarter. Additionally, their reported loss in shares was at $0.03 per share, which is markedly lower than last year’s $0.08 per share loss. The company went on to highlight some of the new services and features they have added to their website and mobile applications, including their integration into Bing’s local business pages, which will make it easier for consumers to find reliable and popular businesses in their area, and a new check-in feature customers can use from their mobile devices.
Local business online marketing tools coupled with Frank Kern’s materials have given 5StarControl’s clients unique advantages in monitoring and managing their online reputations with Yelp. Paired with Yelp’s new mobile app features, consumers’ reviews on Yelp have jumped dramatically to an astonishing “7.2 million unique mobile devices on a monthly average basis for the quarter,” reported the Sacramento Bee.

5StarControl was quoted as saying, "Because mobile apps are making it easier and faster for consumers to leave feedback of businesses they visit than by word-of-mouth, local business owners need to be more vigilant than ever about protecting their business reputation and focusing some of their efforts on mobile seo." They went on to explain that this new way of passing along consumer satisfaction opinions can cause severe damage to a business’ marketability and profit margins by reducing the number of new customer exposure, as well as discouraging people already familiar with the company from repeat business.

The concept of customers sharing shopping experiences is not a new one. But as technology advances, so too does the method of consumer opinion sharing. This makes Yelp ideally situated to help both consumers and local business owners. However, 5StarControl warns that complacency over several good, even stellar reviews is not practical or realistic if a local business wishes to maintain a positive online presence, or improve upon it.

Yelp’s recent financial success and how they achieved such rapid growth, have proved their forecasting was closer to accurate than Wall Street speculators gave them credit for by a 7 percent margin, an AP report stated on August 2nd. Yelp, which started out as a local business marketing site in 2004, has set the standard more local businesses are following in creating, maintaining, and monitoring their online reputations, with the help of reputation management companies like 5StarControl. 5StarControl insists that companies that protect their online business reputations are also protecting their financial future, especially since more and more consumers are sharing business reviews on websites like Yelp, Angie’s List, and Facebook.

5StarControl is a site about individual business issues in the area of online review sites.

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