Yelp reported $1.41 billion in total revenue for 2024, driven by a 19% year-over-year increase in services and a direct sales channel supporting 575,000 paying advertisers. Core advertising services accounted for 96% of revenue, reflecting steady profitability and a robust advertising footprint.

The company is enhancing its AI capabilities with features like Yelp Assistant, Yelp Host and Menu Vision, and has licensed its 330 million reviews through deals with leading AI firms. The early 2026 acquisition of Hatch for $270 million plus up to $30 million in retention incentives brings a lead management platform with $25 million ARR and 70% annual growth.

Google Reviews holds a 73% market share compared to Yelp’s 6%, and recent economic strains have led to a 6–12% ad demand decline in restaurant and retail sectors alongside a 2% dip in user engagement. Ongoing investments in content moderation are critical to preserving review authenticity and user trust.

Beyond local advertising, Yelp is targeting high-growth segments like home services, national multi-location brands and data licensing via its AI API to expand higher-margin revenue. However, margin pressures from AI investments and elevated stock-based compensation pose dilution risks if not tightly managed.