Yesterday ReachLocal reported Q2 earnings and just a few minutes ago Yelp released its second-quarter results. Overall, ReachLocal reported $112.2 million in quarterly revenue (21% growth vs. 2011). This was largely powered by direct local advertisers and international revenue. The company has 21,300 active advertisers and 828 total sales staff.
Yelp reported Q2 revenues of $32.7 million vs. $27.4 million last quarter. First half revenues were $60 million vs. $36.1 million last year.
Yelp said that it now has 30 million reviews and 78 million monthly unique users on a global basis. It has 7.2 million mobile app users. It also has 32,000 “active local business accounts,” which is not the same as advertisers.
Yelp added that it anticipates full year revenue of roughly $136 million, which would represent 62% growth vs. 2011.
August 1st, 2012 at 11:44 pm
Greg its great to see that Reach Local is still growing. However, is all of the talk about expanding international revenues code for “we have a big advertiser churn problem”?
It would be good if they could provide greater transparency into their advertiser churn rates.
August 2nd, 2012 at 1:46 pm
Agree that churn remains a problem. I’m surprised that investors aren’t demanding that information. However Yelp doesn’t provide it either; just overall “active” numbers.
August 8th, 2012 at 6:19 pm
Noticed this article from several days ago. I also had noticed something curious relative to these companies at a similar period. Earlier today, on Yelp, I noticed an owner response to a negative yelp review having been removed. We had claimed and described in detail that we thought the review was generated by a competitor. Today I noticed the old negative/attack review still up….the review having a lot of “helpful” notifications…and the response/rebuttal no longer showing.
Really….what gives with yelp.
As to the revenues and the two businesses. I have experience with both. My direct experience with reachlocal was simply that their ppc campaign was simplistic and undeveloped or refined over time. It generated less leads than one with hands on experience. ppc isn’t magic. It takes time and refinement to incrementally enhance its results over time. Moreover RL simply adds a lot of charges to PPC ads….you get less bang for the buck.
If an smb has never done PPC, it can help, I suspect, but otherwise its a very exmpensive alternative, IMHO. I believe best way to evaluate them is to not only look at them but wide read through search results for terms like “reach local reviews”. The responses are very interesting.
OTOH, I’m sure google likes them. RL puts “feet on the street” that essentially sells Adwords. They are a form of a “google salesforce”. I doubt if google will ever clamp down on them.
With yelp, IMHO it “sells a lot more than it delivers”.
Yet…there is enormous growth in the local advertising world. Its growing by $billions. All these companies want a piece of the action.
Whether they deliver well or not….the industry is growing so much….it at least augurs well for increased revenues.