IB Net Payout Yields Model

Yelp: Money Machine

Yelp reported a solid Q2 despite the revenue miss.
The company repurchased 8.8 million shares in the quarter, leading to a nearly 12% share count reduction YoY.
The stock is cheap trading at 9x EV/EBITDA estimates while the EBITDA/share grew by 50%.
While the market has constantly hyperventilated on the revenue growth of Yelp (YELP), the consumer review site has quietly become a money machine. The company has utilized expense control to generate large cash flows to substantially reduce share counts in a huge benefit to shareholders. The market will slowly catch on to the bullish cash flow story for a company growing revenues up to 10% annually.
Read the full article on Seeking Alpha. 
Disclosure: Long YELP. Please read the disclaimer page for more details. 


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