U.S.-based Yelp is heading across the pond for more local business reviews. The company today announced the acquisition of Qype, a local review site based in Europe, for approximately $50 million. According to the statement, Qype brings along two million reviews and 15 million monthly unique visitors in 13 countries.
The announcement precedes Yelp’s third quarterly earnings statement, which the company plans to release on November 1 along with guidance for the fourth quarter and for the year of 2012. A preliminary report shows revenues at $36.4 million –up from $32.7 million in quarter two and exceeding Bloomberg’s estimate of $35.7 million — with a net loss of approximately $2.0 million for quarter three.
This time last quarter, Yelp had expanded into Denmark, Finland, Norway, and Madison, Wisconsin, making the company active in 90 markets worldwide. To increase sales efforts in the UK, Yelp also opened an office in London.
However, Yelp CFO Rob Krolik told investors in a second-quarter earnings call that “virtually no revenue has come from overseas market. In fact, we are only generating revenue in 3 out of our 17 countries that we operate in, which we see as an opportunity.”
Founded in Hamburg in 2006, Qype should help solidify Yelp’s presence in Europe. Said Jeremy Stoppelman, Yelp co-founder and chief executive officer in a statement, “With its strong local content in key markets like Germany and the United Kingdom, we believe that Qype will help Yelp become the de facto choice for local search in those markets. Qype’s established European sales force will also bring more local business owners into the Yelp ecosystem, which in turn will bolster our mission to connect people with great local businesses all over the world.”