Yelp connects businesses and consumers in the U.S., and makes money by selling advertising space on its platform. Yelp has a single operating and reporting segment; however, the company breaks down its revenue ($943 million in 2018) into three sub-segments based on the type of service provided:Advertising (2018 revenue of $907 million, 96% of total):
The company offers to build free profiles for businesses and provides various related services (including branded profiles, enhanced profiles, verification tags, search and ads) on a paid basis.Transactions (2018 revenue of $14 million, ~1% of total):
Yelp earns commissions on transactions that the company facilitates across the Yelp Platform, Eat24 and the partnership with Grubhub, Yelp Deals and Gift certificates.Other services (2018 revenue of $22 million, ~2% of total):
Other services revenue is generated through subscription, licencing payments for access to Yelp data, and revenue from partnerships.