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Shares of Yelp fall on weak earnings outlook

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Shares of Yelp Inc. dropped 14 percent in extended trading Wednesday after the online business reviews site reported a loss of $1.3 million in its first quarter and gave a lower-than-expected revenue outlook.

Yelp said the average monthly desktop unique visitors fell 3 percent to 80 million as more users browsed on smartphones and tablets. Average monthly mobile unique visitors rose 29 percent to 79 million.

On a per-share basis, the San Francisco-based company lost 2 cents. Analysts surveyed by Zacks Investment Research forecast breakeven earnings per share, on average. Excluding stock option expense income totaled 10 cents per share.

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The online business reviews company posted revenue of $118.5 million in the period, falling short of Street forecasts. Seventeen analysts surveyed by Zacks expected $119.4 million.

For the current quarter ending in June, Yelp said it expects revenue in the range of $131 million to $134 million. Analysts surveyed by Zacks had expected revenue of $136.8 million.

The company expects full-year revenue in the range of $574 million to $579 million. Analysts expect $578.8 million, according to FactSet.

Yelp shares have dropped slightly more than 6 percent since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $51.28, a drop of 13 percent in the last 12 months.

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