Yelp Inc. (NYSE:YELP) Q2 2019 Earnings Conference Call Transcript
Aug 08, 2019 • 05:00 pm ET
We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Shweta Khajuria with RBC Capital Markets. Please go ahead. I'm sorry, the first question comes from Lloyd Walmsley with Deutsche Bank. Please go ahead.
It looks like you guys have some stabilization in the revenue per account metric this quarter. Maybe could you guys just spent a little time talking about whether or not this is a function of larger national accounts becoming a larger share of the mix versus being like a stability in the core SMB, same store advertising dollars?
Thanks, Lloyd. It was a combination of both. As we said a year ago when we made the transition to non-term contract, we thought that it would temporarily depress the average revenue per customer in the SMB marketplace. And it did that, and we also said a year ago that by the time we cycle through a year, we would flatten out, and it has done that. And as well as we've grown the enterprise and large national accounts which revenue from those customers tends to be quite a bit bigger than the SMB, that is also blending up the average revenue per account the way you're looking at it.
Got it. Got it. And maybe just another one if I could on the product side of things. It seems like you guys are doing a lot on the advertising product front, but maybe I just want to hear more about what you're doing to boost -- boost consumer engagement. I've seen products that are Google launching and they request a quote beta and you've TripAdvisor moving to this feed-based interface. So maybe if you could just kind of give an update on how you guys are thinking about either bringing more folks into the Yelp Platform or getting folks to engage more on the Yelp Platform? Thanks.
Sure. I can take that, Lloyd. This is Jeremy. We've been investing heavily for a number of years on the restaurant services side, so with Yelp Reservations, and no way creating only on Yelp experience. And that's really been a success. It's grown Yelp seated diners really quickly. It's up about 166% year-over-year and that's driving engagements, driving downloads, and it's something frankly you can only get on our platform. So you can really save time, which we think is valuable and loved by users.
Additionally, we continued to invest in the product generally, we started rolling out personalization very recently, as you can put in things like dietary preferences or whether you have kids and we can tailor results. So, while it's true that Google continues to copy our features a few months, potentially after we innovate, we continue to roll-out new and exciting things for people, and we see great engagement. I guess the last note on that is we have been able to pull back on some of our marketing investment in driving downloads because of our success with distribution through other channels like