Yelp Inc. (NYSE:YELP) Q2 2019 Earnings Conference Call Transcript
Aug 08, 2019 • 05:00 pm ET
confidence in the potential for accelerating revenue growth and achieving our revenue and margin targets for the year. Although, we are just a few quarters into our business transition, we are encouraged by the early results our team has achieved. I'm proud of their focus and execution, and look forward to sharing more about our continued progress in the quarters to come.
And with that, I will turn it over to Lanny for some additional color on the work that we're doing.
Thank you, Jeremy. As you just said, we had a solid second quarter, and we've made progress that positions Yelp to accelerate revenue growth in the second half, and that's reflected in our third quarter and full year 2019 business outlook.
Before we open up the call to questions, I'd like to briefly highlight a set of second quarter and first half trends that reflect important evolutions in Yelp strategy, in our go-to-market and in our business model.
First, changes in our go-to-market strategy, particularly around multi-location customers and Self Serve have begun to generate revenue growth without the expansion of our local advertising sales force.
Second, a shift in our product development focus is delivering new offerings and greater value for business owners, which in turn is contributing to renewed growth in customers and revenue.
Third, product improvements and our customer success initiatives are reducing customer churn and improving revenue retention, even as more and more of our advertisers are now on non-term contracts.
Fourth, experiences like Yelp Reservations and Yelp Waitlist are propelling mobile app usage and consumer engagement on an organic basis, which is allowing us to scale back on user acquisition spending.
And finally, improvements in customer acquisition and revenue retention combined with purposeful expense management are contributing to margins and balance sheet strength, which we've deployed to repurchased roughly $400 million in stock and reduced shares outstanding by a mid-teens percentage year-to-date through June.
These are very intentional and important accomplishments in the first half of 2019, and are fundamental components of the long-term plan we outlined earlier this year. Although, we're still in the midst of what's a transitional year, our goals are very clear, the team is very focused and our momentum -- our momentum is building.
That brings me to my personal news today. I plan to step down from my position at Yelp to accept an executive role at another company in early September. This is an unexpected opportunity and one that I feel very compelled to pursue. While these kinds of changes rarely occur with perfect timing, in this case, the progress that we've made in recent quarters, the strength of the Yelp's long-term plan and the capacity of our team to continue to execute, give me great confidence, this is an appropriate time to make a change.
I'm immensely thankful to Jeremy, to my own team here and all the employees and directors of Yelp for what's been an incredible experience. I have tremendous excitement about Yelp's