Yelp CEO Jeremy Stoppelman Photo by Steve Jennings/Getty Images for TechCrunch

Social review site Yelp went down by up to 30% during trading this Friday after it reported disappointing sales amid a miss on earnings estimates and concerns on future growth. “Although we achieved our adjusted EBITDA outlook for the third quarter, revenue was lower than we anticipated,” Yelp CEO Jeremy Stoppelman said.

“While the shift to non-term advertising has opened our sales funnel, it has also made our results more sensitive to short-term operational issues. We have begun to address a number of the issues that impacted our third quarter results; however, we expect them to affect our fourth quarter results as well, as reflected in our Business Outlook.” Stoppelman stated.

It reported revenues of $241 million for Q3 and cut its full-year revenue guidance to a range of $938 million to $942 million, down from a previously stated $952 million to $967 million range.

image source : Yelp

“One of the reasons we’ve expressed this year some caution about the transition to non-term contract is a recognition that the business is operating at a bit of a different clock speed today than it was before. And so one of the things we’ve learned is that the business is now more sensitive to the short-term productivity issues that probably were there in the past as well,” Stoppelman said on the company’s earnings call.

“We do not believe that there was any one single factor behind the new sales shortfall relative to our expectations. Instead, a number of smaller, compounding issues arose, including slower-than-expected sales head count growth, a change in advertising promotions, a technical issue in flowing leads to our reps and a lower success rate in contacting business decision-makers by our outbound sales calls,” Its CFO Charles Baker also stated.

Yelp dipped to a 52 week low and is trading at around $31 (as of writing) on the New York Stock Exchange.

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