Good day, and welcome to the Yelp Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would like to now turn the conference over to Ronald Clark, Head of Investor Relations. Please go ahead.
Good afternoon, everyone, and thanks for joining us on Yelp's second quarter earnings conference call.
Joining me today are Yelp's CEO, Jeremy Stoppelman; CFO, Lanny Baker; and COO, Jed Nachman.
Before we begin, I'll read our safe harbor statement. We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings as well as our shareholder letter for a more detailed description of risk factors that may affect our results.
During our call today, we'll discuss adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. In our shareholder letter released this afternoon and our filings with the SEC, each of which is posted to our website, you will find additional disclosures regarding these non-GAAP financial measures as well as historical reconciliations of GAAP net income to both adjusted EBITDA and adjusted EBITDA margin.
And with that, I'll turn the call over to Jeremy.
Thanks, Ron, and welcome, everyone. Yelp had a solid second quarter. We grew revenue in line with our outlook and we exceeded our expectations for adjusted EBITDA. We reached record level this quarter. Strong bottom line growth combined with a meaningfully lower share count, thanks to our stock repurchases drove a 30% year-over-year increase in earnings per share in Q2 on a fully diluted basis.
We also made substantial progress on our business transition. New business offerings are resonating with customers and beginning to generate incremental revenue. Active paying locations for two new products Verified License and Business Highlights surpassed 25,000 in the quarter. We improved ad revenue retention in each successive month in the first half by providing our advertisers with more value for their money. Paid ad clicks increased 42% year-over-year driving down average CPCs by 25% in the second quarter.
We also saw increased ad spend from large advertisers with revenue from multi-location clients up 21% year-over-year, driven by compelling store visit economics, new ad products and expanded client coverage. As of the end of July, the ad budget dollars that clients have awarded us to spend on Yelp were up by 10% over last year. This measure has historically served as a close proxy for future ad revenue growth, and we have seen budget grow steadily since the start of the year.
The tangible progress we have made create underlying momentum in our business and reinforces our
Head of Investor Relations
Co-founder and Chief Executive Officer
Chief Financial Offcer
Chief Operating Officer
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