Web

Yelp IPO slated for March 2, shares to start at $12 to $14

life before Yelp's IPO

Thanks to foodies, Yelp grew into an essential user-generated review platform, fueled by the critical taste buds of users’ peers. Seven years after its inception, Yelp filed for an initial public offering in November in a bid to sell $100 million in stock. On Thursday, the company revealed in a regulatory filing that it is seeking to sell 7.15 million shares at $12 to $14, thereby valuing the company at $788 million, or $838.6 million on a higher end.

Yelp’s stock will begin trading under the New York Stock Exchange, under the YELP ticker beginning March 2.

Despite its niche advertising model, Yelp has been criticized for its unsustainable business model, relying almost entirely on advertising. For instance, advertising accounted for 90.7 percent its revenue during the first nine months of 2011, but the company incurred an operating loss of $7.4 million on revenues in excess of $58.4 million. During the same nine months of 2010, the story was no different. With revenues of $32.5 million, Yelp incurred losses of $8.5 million for a total of $9.6 million that same year.

While its losses year after year have put doubt into the minds of potential investors, Yelp’s one saving grace has been its steady revenue growth, at a rate of close to 80 percent year-over-year. The critic’s mentality is not unfounded, as it’s fueled by the inconsolable fact that for a company repeatedly incurring losses, Yelp’s valuation appears to be wildly inflated in comparison to its listed competitors, Yahoo and Google. Yelp’s lower-end valuation of $788 million values the company at 9.3 times its 2011 revenue. Google, on the other hand, was valued 5.2 times its revenue with a market capitalization of $23 billion in 2004. Yahoo’s 1996 IPO had given the company a market valuation of $848 million, or 3.8 times its sales.

Still, Yelp’s valuation falls short of the $1 billion to $2 billion valuation that was reported in November.

Yelp, prior to its IPO, had raised a total of $56 million in venture capital and angel funding. Residing chairman and PayPal co-founder, Max Levchin, owns a 13.5 percent stake in Yelp, and was the company’s Series A investor. Jeremy Stoppleman, Yelp CEO and founder, currently holds 11.1 percent. Bessemer Venture partners own 22.1 percent, Elevation Partners own 22.4 percent, and Benchmark Capital own 16.2 percent.

The Yelp Foundation, Yelp’s eponymous charity, had received 520,000 of its shares and will sell 50,000 of the foundation’s shares.

According to the filing, at the helm of the offering will be Goldman Sachs Group as the bookrunning manager and underwriters for the offering. Citigroup Global Markets Inc. and Jeffries & Company, Inc. will act as joint bookrunning managers, while Allen & Company LLC and Oppenheimer & Co. Inc. will act as co-managers.

Social Media

Like a pocketable personal stylist, Pinterest overhauls shopping tools

Pinterest shopping just got a bit better with a trio of updates now rolling out to Pinterest. The first replaces Buyable Pins with Product Pins for more features, including knowing whether or not a product is in stock.
Cars

Watch this 1,000-horsepower Jeep Trackhawk scorch supercars in the quarter mile

The Jeep Grand Cherokee Trackhawk is pretty quick out of the box, but Texas tuner Hennessey Performance Engineering never settles for stock. Its HPE1200 Trackhawk boasts over 1,000 horsepower.
Computing

Leaked benchmarks suggest rumored AMD GPU could be king of midrange graphics

AMD's next GPU may not be Navi-based after all. Rumors continue to build about an RX 590 which has now shown up on 3DMark's benchmark database, delivering results that easily outstrip stock clocked GTX 1060s.
Gaming

Here's where Xur is and what he has for wares this week in 'Destiny 2: Forsaken'

The weekly vendor in Destiny 2: Forsaken always brings Exotic weapons and armor, some of the toughest loot to find in the game. Here's everything you need to know to track down Xur: Where he is, when he shows up, and what he's stocking.
Computing

Google to shut down Google+ after exposure of 500,000 users’ data

After Facebook revealed that 50 million users may have been exposed as a result of a security vulnerability, Google announced it discovered a bug that left 500,000 Google+ users exposed. It will also shut down Google+.
Social Media

Sick of Facebook privacy scandals? Here's how to protect your personal data

With a number of security scandals in 2018, it has us questioning if we should get rid of Facebook. Here's how to protect your personal data without deleting your account, as well as how to just nuke the thing altogether.
Computing

Google Slides now auto-transcribes verbal presentations for real-time captions

A new feature for the Google Slides presentation software uses a computer's built-in microphone to transcribe the words of a speaker in real time, displaying them for everyone to see.
Mobile

Pixel 3, Home Hub, and Pixel Slate — our first look at all Google’s new devices

Google has taken the wraps off of a slew of new devices, including the Pixel 3 smartphones, Google Home Hub smart display, Google Pixel Slate tablet, and more. We were at the event, and took a ton of photos of all of Google's new products.
Music

Spotify vs. Pandora: Which music streaming service is better for you?

Which music streaming platform is best for you? We pit Spotify versus Pandora, two mighty streaming services with on-demand music and massive catalogs, comparing every facet of the two services to help you decide which is best.
Mobile

PayPal will soon let you withdraw cash at Walmart, but there’s a catch

PayPal has teamed up with Walmart to allow its account holders to withdraw and deposit cash at the store. The service launches at all Walmart stores across the U.S. in early November, but there's a catch.
Computing

Here's how to download a YouTube video to watch offline later

Learning how to download YouTube videos is easier than you might think. There are plenty of great tools you can use, both online and offline. These are our favorites and a step by step guide on how to use them.
Cars

Carbuying can be exhausting: Here are the best used car websites to make it easier

Shopping for a used car isn't easy, especially when the salesman is looking to make a quick sale. Thankfully, there are plenty of sites aimed at the prospective buyer, whether you're looking for a sedan or a newfangled hybrid.
Computing

How to recover Google contacts

If you accidentally deleted an important person from your Google Contacts, they might not be lost forever. Recovering them is a fairly easy process -- as long as you do it quickly. Here's how.
Computing

Afraid that Bitcoin could be a bubble? Here's how to sell what you've got

If you're investing in cryptocurrencies, it's important to have your exit strategy in place if prices start to crash. If you've decided it's time to get out or just want to learn how to sell Bitcoins, here's how to get started.