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Yelp Faces A Major User Problem

Despite strong earnings numbers, Yelp (YELP) faces an issue with struggling user growth. Most of the metrics used to track the growth of the company remain in major growth mode, but the consumer review site is struggling to expand much beyond the 130 million MUUs (monthly unique users) that it first reached during Q114.

The consumer review site still offers the promise of connecting with the ad engine of local businesses. Mobile appears the key to getting past a recent hurdle with a competitor, but Yelp needs to make a lot of progress in that area for the stock to get rewarded with a larger valuation.

Monthly User Struggles

Yelp reported that Q414 MUUs were only 135 million. Sure this was 13% YoY growth, but it was a drop from 139 million in the prior quarter. It was only a slight increase from Q1 levels of 132 million suggesting an… Read More …