Yelp shares are tumbling in the wake of the company's Q3 earnings announcement.
The company reported quarterly revenue jumped 67% to $102.5 million, which was a bit higher than the $99 million expected by analysts. Earnings came in at $0.05 cents per share, which was well ahead of the $0.02 expected.
Management's guidance, however, was a bit light. They expect Q4 revenue between $107 million and $108 million versus expectations for $111 million.
Shares are down by over 11% in after-hours trading.
"We had an outstanding quarter driven by strong execution across all areas of our business," CEO Jeremy Stoppelman said.
While the pace of growth appears to be impressive, expectations for these young tech startups tend to be quite high. As such, it's very easy to disappoint investors.
It's definitely worth pointing out that Yelp is up around 185% since its IPO three years ago.
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