The shares of Yelp Inc (NYSE:YELP) of are trading lower after the company announced the resignation of its chief financial officer Rob Krolik over the next few months. The company was also negatively impacted by its results for the fourth quarter of 2015.
The stock price of the company was down almost 12% to $15.95 per share, around 2:22 in the afternoon in New York. The stock dropped as low as $15.67 a share earlier today.
Yelp to begin CFO search immediately
According to the company, Krolik will help the company in the transition and search for his replacement. Yelp plans to begin searching for a new CFO immediately.
In a statement, Krolik said he is now ready to take some time off and spend more time with his family after serving Yelp for almost five years. He joined the company in 2011.
He said, “I am a strong believer in the power of Yelp to help consumers and local businesses alike, which is why it has been such a tremendous opportunity and privilege to serve as CFO. It’s been a rewarding experience taking Yelp public, diversifying our offerings through acquisitions, and seeing our team delivers significant and consistent revenue growth year after year.”
On the other hand, CEO Jeremy Stoppelman, said, “Rob has played a crucial role in Yelp’s successful transition from startup to public company… I am grateful for his counsel, his leadership and work on our public offerings and five acquisitions, and his efforts in opening facilities around the world to accommodate our more than 4,000 employees.”
Yelp fourth-quarter results
Yelp also reported that its net revenues were $153.7 million for the fourth quarter of 2015, up by 40% from the same period a year earlier.
Despite the increase in revenue, the company posted a net loss of $22.2 million or $0.29 per share compared with a net income of $32.7 million or $0.42 per share in the year-ago quarter. According to the company, the net loss included an income tax expense of $20.3 million due to the recording of valuation allowance against its deferred tax assets.
The company’s non-GAAP net income (excluding stock-based compensation, amortization, valuation allowance and release) was $9 million or $0.11 per share for the quarter, lower than the $14.5 million or $0.19 per share a year earlier.
For the first quarter of 2016, Yelp expected to achieve revenue around $154 million to $157 million, a 31% increase from the same period last year. The company estimated its adjusted EBITDA in the range of $10 million to $12 million.
For the full year 2016, the company estimated its revenue to be around $685 million to $700 million, an increase of 26% from 2015. It expected its adjusted EBITDA to be around $83 million to $87 million.