By Sabela Ojea

Yelp reported growth in fourth-quarter revenue and profit that beat market expectations as sales from services offset a decline in restaurant-related advertising.

The review site, which generates the majority of its revenue from advertising, Thursday posted net income of $42.2 million, or 62 cents a share, up from with $27.4 million, or 37 cents a share, a year earlier. Analysts polled by FactSet had forecast earnings of 53 cents a share.

Revenue rose 5.7% to $362 million, beating the $350.2 million expected by Wall Street.

Shares rose 3.8% to $42.10 after the closing bell. Through Thursday's close, the stock was up 4.8% year to date, though was down 8.7% over the past year.

Finance Chief David Schwarzbach said the company continues to deal with a challenging environment for its restaurant and retail categories, with services driving business performance.

Advertising revenue from its services businesses rose 11% to a record high $879 million in the quarter, while its advertising revenue from restaurants and retail fell 3% to $470 million.

"Looking ahead, we remain confident in the opportunities across services categories to drive long-term profitable growth," Chief Executive Jeremy Stoppelman said.

For 2025, Yelp expects revenue of $1.47 billion to $1.49 billion, with Wall Street analysts forecasting a full-year topline performance of $1.48 billion.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 13, 2025 16:57 ET (21:57 GMT)

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