At the Goldman Sachs Communacopia + Technology Conference in September 2026, Yelp’s CEO Jeremy Stoppelman outlined the company’s evolving strategy to capitalize on artificial intelligence, despite a challenging market environment. The platform’s stock, trading near its 52-week low of $19.60, has fallen roughly 33% year-to-date, reflecting broader pressures in its core segments—restaurant, retail, and other (RR&O)—driven by inflation, labor costs, reduced consumer dining activity, and geopolitical tensions, including conflicts in the Middle East. With a market capitalization of $1.14 billion, Yelp’s valuation contrasts with the valuations of competitors like OpenAI and Meta, which have achieved billion-dollar-plus valuations, according to Stoppelman. ‘If maybe our effort is worth anything like that, then either you’re getting the AI tool side of the business free or you’re getting the ads business free,’ he noted, emphasizing Yelp’s dual revenue streams: advertising and AI-powered services.
Yelp’s product-led growth phase has expanded its annualized advertising revenue to about $1.5 billion, while other revenue streams—including transaction fees from DoorDash, licensing partnerships (such as with OpenAI’s ChatGPT and automotive platforms), and subscription services—annualized to roughly $133 million in Q2. Management targets $250 million in annualized other revenues by the end of 2028, representing a 53% increase from the second-quarter run rate. Subscription revenue for Yelp Host, an AI-powered phone receptionist for restaurants, surged 98% in Q2, reaching a $2.4 million monthly run rate in July—tripling from January levels. The service supports 17 to 18 languages and integrates seamlessly with point-of-sale systems and front-of-house software like Guest Manager and OpenTable, offering commission-free functionality.
Yelp’s AI initiatives extend beyond Host. The company acquired Hatch in February 2024 to bolster its AI-driven appointment-scheduling platform, doubling its product and engineering team and go-to-market organization. Hatch uses AI to manage multi-source leads and convert them into booked appointments, with potential expansion into additional home-service categories. Additionally, Yelp’s content is now featured in ChatGPT’s local search results, with a “Request a Quote” button powered by a Model Context Protocol (MCP) widget. This integration captures user information and feeds it into Yelp’s ecosystem, enhancing its monetization capabilities.
Stoppelman framed Yelp’s data asset as a competitive differentiator, comparing it to platforms like Reddit and Wikipedia. ‘I think something that’s become increasingly clear is that Yelp has a very unique data asset,’ he said. ‘I’d put it right up there with Reddit as another example, or maybe Wikipedia.’ The CEO emphasized the strategic importance of AI in Yelp’s transition from a product-led growth phase to the “AI era,” positioning the company to compete head-to-head with Silicon Valley giants.
While Yelp’s revenue growth remains contingent on overcoming macroeconomic headwinds, its AI-driven initiatives—including Host, Hatch, and ChatGPT integrations—aim to diversify its revenue streams and strengthen its market position. The company is currently in the middle of 2027 planning, with a focus on scaling these AI capabilities while navigating a market where Google dominates traditional search at about 85%.
