1. C O M P A N Y N O T E
A p r i l 1 6 , 2 0 1 4
Yelp, Inc. (YELP) Neutral
Introducing Review Growth for Yelp vs. Google Plus
PRICE: US$63.06
TARGET: US$80.00
(10.5x FY15E EV/revenue)
Gene Munster
Sr Research Analyst, Piper Jaffray & Co.
612 303-6452, gene.a.munster@pjc.com
Douglas J. Clinton
Research Analyst, Piper Jaffray & Co.
212 284-9488, douglas.j.clinton@pjc.com
Travis S. Jakel
Analytics Specialist, Piper Jaffray & Co.
Changes Previous Current
Rating — Neutral
Price Tgt — US$80.00
FY14E Rev (mil) — US$355.6
FY15E Rev (mil) — US$489.9
FY14E EPS — US$(0.04)
FY15E EPS — US$0.22
52-Week High / Low US$101.75 / US$24.75
Shares Out (mil) 68.9
Market Cap. (mil) US$4,344.8
Avg Daily Vol (000) 4,180
Book Value/Share US$7.06
Net Cash Per Share US$5.56
Debt to Total Capital 0%
Yield 0.00%
Fiscal Year End Dec
Price Performance - 1 Year
Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14
120
100
80
60
40
20
USD
Source: Bloomberg
CONCLUSION
We are introducing a review count analysis that looks at a snapshot of 950 places in 20
major cities in the U.S. on a weekly basis to measure the consumer review trends between
Yelp and Google Plus. While the current data represents only a snapshot, over time we
expect the data series will increasingly gain relevance and give us a clearer picture of
review growth trends between the two services. While Google Plus is only small part of
the Google story, Yelp investors remain focused on review trends given reviews are a key
defensible barrier around the Yelp story.
• Yelp exceeds Google Plus on reviews and in places reviewed. In our first tracking of
the number of reviews on Yelp compared with Google Plus, our data shows that Yelp
holds a significant lead in terms of number of reviews compared to Google Plus. Yelp
on average has 142 reviews per place. Google Plus, by comparison, typically averages
69 reviews per place. Furthermore of the 950 places we looked at, Google had reviews
for 750 of them. Even though Yelp beats Google in both areas, Yelp had a multi-year
head start to build out.
• Yelp tends to have longer reviews. Looking at 1000 reviews we tend to find that Yelp
contains longer reviews than Google Plus. Yelp on average has 784 characters per
review. Google Plus, by comparison, typically averages 161 characters per review. A
major contributor to a lower character count is that roughly a fourth of the Google
Reviews contained no text and only a rating. Yelp in comparison forces reviewers to
provide some text along with their rating.
• Our take on Google Plus reviews. Google Plus Reviews is largely irrelevant to the
Google story. Google makes fractional revenue from reviews within Google Plus. We
believe that Google Reviews from Google's perspective is about enhancing the search
and map experience instead of generating revenue.
• Introducing review tracking for Yelp vs. Google Plus. The current snapshot lays out a
foundation from which we can compare and monitor major changes in review growth.
We view review growth and quality as a necessity due to Google’s quest to enhance
search services. As Google presses forward perfecting the mobile and desktop map
and search experience, we view Google Plus Reviews as an up and coming threat to
Yelp's platform.
RISKS TO ACHIEVEMENT OF PRICE TARGET
Risks include changes in local ad market, competition from larger players like Google,
and changes in how local consumers interact with businesses.
COMPANY DESCRIPTION
Yelp is the leading online service for local business customer reviews.
YEAR
2013A
2014E
2015E
REVENUE (US$ m)
Mar Jun Sep Dec FY FY RM
46.1 55.0 61.2 70.7 233.1 18.6x
73.9 83.9 93.0 104.9 355.6 12.2x
105.7 116.2 126.9 141.0 489.9 8.9x
EARNINGS PER SHARE (US$)
Mar Jun Sep Dec FY FY P/E
(0.08) (0.01) (0.04) (0.03) (0.15) NM
(0.05) (0.02) 0.00 0.03 (0.04) NM
0.03 0.05 0.06 0.09 0.22 NM
Page 1 of 6Yelp, Inc.
Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware
that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as
only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure
information, including an attestation under Regulation Analyst certification, found on pages 5 - 6 of this report or at the following
site: http://www.piperjaffray.com/researchdisclosures.

2. C O M P A N Y N O T E
A p r i l 1 6 , 2 0 1 4
Google Reviews vs. Yelp Snapshot of the number of reviews for 950 locations in 20 major cities across the United States.
Comparison of the 750 places they both have:
Total # of Reviews
Google Reviews 51561
Yelp Reviews 106660
Comparison of Yelp 50 places vs. Google 50 places:
Total # of Reviews
Google Reviews 51561
Yelp Reviews 126174
Sources: Yelp, Google, Piper Jaffray research
Page 2 of 6Yelp, Inc.

3. C O M P A N Y N O T E
A p r i l 1 6 , 2 0 1 4
Categorical Breakdown of Reviews:
Google Reviews and Yelp
Below is a categorical breakdown of the 750 places where they both have reviews and what
percent each category contributed to the total.
Google Number of Reviews
Category 4/15/2014 % of Total
Restaurants 24919 48.3%
Shopping 3629 7.0%
Local Services 3884 7.5%
Arts & Entertainment 5526 10.7%
Beauty & Spas 7184 13.9%
Bars / Nightlife 1501 2.9%
Automotive 305 0.6%
Health & Medical 171 0.3%
Public Services & Government 1490 2.9%
Home Services 1984 3.8%
Active Life 535 1.0%
Hotels & Travel 355 0.7%
Education 13 0.0%
Professtional Services 0 0.0%
Professional Services 33 0.1%
Religious Organizations 32 0.1%
Financial Services 0 0.0%
Yelp Number of Reviews
Category 4/15/2014 % of Total
Restaurants 48391 45.4%
Shopping 18515 17.4%
Local Services 6365 6.0%
Arts & Entertainment 12332 11.6%
Beauty & Spas 4351 4.1%
Bars / Nightlife 4721 4.4%
Automotive 3535 3.3%
Health & Medical 1282 1.2%
Public Services & Government 4689 4.4%
Home Services 446 0.4%
Active Life 620 0.6%
Hotels & Travel 820 0.8%
Education 259 0.2%
Professional Services 310 0.3%
Religious Organizations 24 0.0%
Financial Services 0 0.0%
Sources: Yelp, Google, Piper Jaffray research.
Page 3 of 6Yelp, Inc.

4. Douglas Clinton, Research Analyst Gene Munster, Sr. Research Analyst
Douglas.J.Clinton@pjc.com Gene.A.Munster@pjc.com
Income Statement 212-284-9488 612-303-6452
Updated 04/16/2014
($ in millions, except per share amounts)
2011 2012 Q1 Q2 Q3 Q4 2013 Q1E Q2E Q3E Q4E 2014E Q1E Q2E Q3E Q4E 2015E
Local Advertising 58.5 109.2 39.0 44.8 51.2 58.1 193.1 64.3 72.4 81.7 91.0 309.4 95.4 104.0 114.8 126.1 440.3
Brand Advertising 17.7 20.6 4.8 7.0 6.9 9.2 27.9 6.5 7.9 7.8 10.1 32.3 7.0 8.5 8.4 10.9 34.7
Other Services 7.1 7.8 2.4 3.2 3.1 3.4 12.1 3.1 3.5 3.5 3.8 13.9 3.3 3.7 3.7 4.1 14.8
Total Revenue 83.3 137.6 46.1 55.0 61.2 70.7 233.1 73.9 83.9 93.0 104.9 355.6 105.7 116.2 126.9 141.0 489.9
Cost of Revenue 5.9 9.8 3.3 3.9 4.2 4.8 16.1 5.2 5.9 6.5 7.3 24.9 7.4 8.1 8.9 9.9 34.3
Gross Profit 77.4 127.8 42.9 51.1 57.0 65.9 217.0 68.7 78.0 86.5 97.5 330.8 98.3 108.1 118.0 131.1 455.6
Operating Expenses
Sales & Marketing 52.9 81.0 26.2 28.5 31.5 35.6 121.8 39.2 43.6 48.4 54.5 185.7 55.0 60.4 66.0 73.3 254.7
Product Development 10.9 18.8 6.4 7.0 9.5 9.1 32.0 9.8 10.2 11.2 11.5 42.8 11.6 12.2 13.3 14.5 51.7
General & Administrative 14.7 23.4 7.0 7.9 8.0 10.7 33.6 11.2 11.3 11.5 12.6 46.7 12.2 12.8 14.0 15.5 54.4
Depreciation & Amortization 4.2 7.2 2.5 2.6 2.8 3.5 11.5 3.7 4.0 4.3 5.0 17.0 5.2 5.5 5.8 6.0 22.5
Stock Based Compensation 4.9 14.9 5.2 5.7 7.0 8.8 26.7 10.5 11.0 11.0 11.0 43.5 11.5 11.5 12.0 12.0 47.0
Other 5.9 1.3 0.1 0.0 0.0 0.1 0.0 0.0
Total operating expenses 93.6 146.5 47.4 51.7 58.8 67.8 225.6 74.4 80.2 86.4 94.7 335.6 95.5 102.4 111.1 121.4 430.4
Income (loss) from operations (16.2) (18.8) (4.6) (0.6) (1.8) (1.9) (8.8) (5.7) (2.2) 0.1 2.9 (4.9) 2.9 5.7 6.9 9.8 25.3
Total other income (expense) (0.4) (0.3) (0.2) (0.1) (0.0) (0.1) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pre-Tax Income (16.6) (19.0) (4.8) (0.6) (1.8) (2.0) (9.2) (5.7) (2.2) 0.1 2.9 (4.9) 2.9 5.7 6.9 9.8 25.3
Income tax expense (benefit) (0.1) (0.1) (0.0) (0.2) (0.5) (0.1) (0.8) 2.0 0.8 (0.0) (1.0) 1.7 (1.0) (2.0) (2.4) (3.4) (8.8)
Net income (16.7) (19.2) (4.8) (0.9) (2.3) (2.1) (10.1) (3.7) (1.4) 0.1 1.9 (3.2) 1.9 3.7 4.5 6.4 16.4
EBITDA (1.1) 4.6 3.2 7.8 8.0 10.4 29.4 8.5 12.8 15.4 18.9 55.6 19.6 22.7 24.7 27.8 94.8
PF Net Income (3.3) (1.6) 0.4 3.1 3.1 4.1 10.8 2.9 5.3 6.7 8.3 23.2 8.6 10.3 11.4 13.1 43.4
PF EPS (0.22)$ (0.02)$ 0.01$ 0.05$ 0.05$ 0.06$ 0.16$ 0.04$ 0.07$ 0.09$ 0.11$ 0.32$ 0.12$ 0.14$ 0.15$ 0.18$ 0.59$
Diluted EPS (1.07)$ (0.30)$ (0.08)$ (0.01)$ (0.04)$ (0.03)$ (0.15)$ (0.05)$ (0.02)$ 0.00$ 0.03$ (0.04)$ 0.03$ 0.05$ 0.06$ 0.09$ 0.22$
Fully-Diluted Shares 15.3 64.0 63.7 64.6 65.5 68.9 65.7 71.0 72.5 73.0 73.5 72.5 72.9 73.2 73.6 74.0 73.4
2011 2012 Q1 Q2 Q3 Q4 2013 Q1E Q2E Q3E Q4E 2014E Q1E Q2E Q3E Q4E 2015E
Metrics
Local Advertising 73% 87% 82% 77% 80% 71% 77% 65% 62% 60% 57% 60% 49% 44% 40% 39% 42%
Paying Accounts (000) 45 51 57 67 72 81 89 102 95 107 117 126 143 132
Y/Y 64% 62% 61% 68% 60% 57% 55% 52% 50% 45% 42% 40%
Local Business ARPU $872 $872 $895 $867 $899 $898 $922 $893 $930.00 $890 $889 $913 $884 $921.00
Y/Y 11% 9% 11% 2% 3% 3% 3% 3% -1% -1% -1% -1%
Brand Advertising Revenue 47% 16% 20% 23% 17% 84% 35% 35% 13% 13% 10% 16% 8% 8% 8% 8% 8%
Other Services Revenue 270% 10% 25% 88% 55% 55% 55% 30% 10% 12% 12% 15% 7% 7% 7% 7% 6%
Total Revenue 74% 65% 68% 69% 68% 72% 69% 60% 52% 52% 48% 53% 43% 39% 36% 34% 38%
Gross profit 73% 65% 70% 68% 68% 72% 70% 60% 53% 52% 48% 52% 43% 39% 36% 34% 38%
EBITDA -80% -507% -437% 398% 270% 476% 541% 165% 65% 92% 81% 89% 130% 77% 60% 47% 70%
Operating income 70% 16% -53% -70% -9% -63% -53% 25% 274% -108% -251% -45% -150% -362% 4876% 240% -621%
Net income 77% 15% -51% -57% 15% -61% -47% -23% 60% -104% -190% -69% -150% -362% 4876% 240% -621%
PF EPS -63% -89% -115% -4845% 1136% -1122% -765% 493% 53% 91% 89% 95% 192% 92% 69% 56% 85%
Expenses
Cost of Revenue 7.1% 7.1% 7.1% 7.1% 6.8% 6.8% 6.9% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
Sales & Marketing 63.6% 58.9% 56.8% 51.8% 51.4% 50.5% 52.3% 53.0% 52.0% 52.0% 52.0% 52.2% 52.0% 52.0% 52.0% 52.0% 52.0%
Product Development 13.0% 13.6% 13.9% 12.6% 15.5% 12.9% 13.7% 13.3% 12.2% 12.0% 11.0% 12.0% 11.0% 10.5% 10.5% 10.3% 10.6%
General & Administrative 17.7% 17.0% 15.2% 14.3% 13.1% 15.2% 14.4% 15.2% 13.5% 12.4% 12.0% 13.1% 11.5% 11.0% 11.0% 11.0% 11.1%
Total Operating Expenses 112.4% 106.5% 102.8% 93.9% 96.1% 95.9% 96.8% 100.7% 95.6% 92.8% 90.3% 94.4% 90.3% 88.1% 87.5% 86.1% 87.8%
GAAP Tax Rate 0.6% 0.6% 0.9% 35.9% 28.1% 2.6% 9.1% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Margins
Gross Margin 92.9% 92.9% 92.9% 92.9% 93.2% 93.2% 93.1% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0%
EBITDA Margin -1.4% 3.3% 6.9% 14.1% 13.2% 14.7% 12.6% 11.5% 15.3% 16.6% 18.0% 15.6% 18.5% 19.5% 19.5% 19.7% 19.3%
Operating Margin -19.4% -13.6% -9.9% -1.1% -2.9% -2.7% -3.8% -7.7% -2.6% 0.2% 2.7% -1.4% 2.7% 4.9% 5.5% 6.9% 5.2%
Operating Margin (ex-SBC) -13.6% -1.9% 1.3% 9.3% 8.6% 9.7% 7.7% 6.5% 10.5% 12.0% 13.2% 10.9% 13.6% 14.8% 14.9% 15.4% 14.7%
Net Margin -20.0% -13.9% -10.4% -1.6% -3.8% -2.9% -4.3% -5.0% -1.7% 0.1% 1.8% -0.9% 1.8% 3.2% 3.6% 4.5% 3.4%
Current disclosure information for this company is located at http://www.piperjaffray.com/researchdisclosures.
FYE 2013FYE 2011
Yelp
FYE 2012
FYE 2015
FYE 2015
FYE 2014
FYE 2014
FYE 2013
Page 4 of 6Yelp, Inc.

5. C O M P A N Y N O T E
A p r i l 1 6 , 2 0 1 4
IMPORTANT RESEARCH DISCLOSURES
Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target. Each
box represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first Note
written during the past three years.
Legend:
I: Initiating Coverage
R: Resuming Coverage
T: Transferring Coverage
D: Discontinuing Coverage
S: Suspending Coverage
OW: Overweight
N: Neutral
UW: Underweight
NA: Not Available
UR: Under Review
Distribution of Ratings/IB Services
Piper Jaffray
IB Serv./Past 12 Mos.
Rating Count Percent Count Percent
BUY [OW] 354 60.00 83 23.45
HOLD [N] 215 36.44 21 9.77
SELL [UW] 21 3.56 0 0.00
Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its affiliates
received compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings most closely
correspond with "buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but instead represent
recommended relative weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and Underweight with sell. See
Stock Rating definitions below.
Analyst Certification — Gene Munster, Sr Research Analyst
Analyst Certification — Douglas J. Clinton, Research Analyst
The views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part of
my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.
Page 5 of 6Yelp, Inc.

6. C O M P A N Y N O T E
A p r i l 1 6 , 2 0 1 4
Research Disclosures
Piper Jaffray was making a market in the securities of Yelp, Inc. at the time this research report was published. Piper Jaffray will buy and sell Yelp,
Inc. securities on a principal basis.
Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.
Rating Definitions
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analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks. Stock performance
is measured relative to the group of stocks covered by each analyst. Lists of the stocks covered by each are available at www.piperjaffray.com/
researchdisclosures. Stock ratings and/or stock coverage may be suspended from time to time in the event that there is no active analyst opinion
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• Overweight (OW): Anticipated to outperform relative to the median of the group of stocks covered by the analyst.
• Neutral (N): Anticipated to perform in line relative to the median of the group of stocks covered by the analyst.
• Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.
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Page 6 of 6Yelp, Inc.