Good afternoon, and thank you for attending today's Yelp fourth quarter and full year 2021 earnings call. My name is Austin and I'll be the moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, James Miln, Senior Vice President of Finance and Investor Relations. James, go ahead. Good afternoon, everyone, and thanks for joining us on Yelp's fourth quarter and full year 2021 earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman, Chief Financial Officer, David Schwarzbach, and Chief Operating Officer, Jed Nachman. We published a shareholder letter on our investor relations website and with the SEC, and hope everyone had a chance to read it. We'll provide some brief opening comments and then turn to your questions. Now I'll read our safe harbor statement. We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release results of any revision to these forward-looking statements in light of new information or future events. In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results. During our call today, we'll discuss adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles. In our shareholder letter released this afternoon and our filings with the SEC, each of which is posted on our website, you will find additional disclosures regarding these non-GAAP financial measures, as well as historical reconciliations of GAAP net income to both adjusted EBITDA and adjusted EBITDA margin. With that, I will turn the call over to Jeremy. Thanks, James, and welcome everyone. Yelp had a record year. After entering 2021 as a structurally stronger business, our elevated pace of product innovation, together with the consistent execution of our strategic initiatives, led us to deliver record annual net revenue of $1.03 billion, an increase of 18% year-over-year and 2% from 2019. At the same time, we delivered $40 million of positive net income and record adjusted EBITDA of $246 million, representing a 24% adjusted EBITDA margin, up three percentage points from 2019. These results demonstrate how our transformed business model is able to drive structural efficiency through product innovation. Underlying this strong performance, we delivered record advertising revenue of $608 million from services businesses, which was up 19% from 2019 as our monetization efforts drove record revenue per paying location in these categories. The home services category proved particularly strong, increasing nearly 40% from 2019. At the same time, advertising revenue from restaurants, retail, and other businesses increased over the course of the year to $377 million, an increase of 18% year-over-year, despite the spread of new COVID-19 variants as well as ongoing labor and supply chain headwinds. Advertising revenue in our RR&O categories remained below 2019 levels at the end of the year, which we believe represents a substantial opportunity as local economies further recover. Ad clicks for the year increased by 24% year-over-year, while average CPCs decreased by 5% as we continued to deliver more value to advertisers through new ad formats and ongoing optimizations to our ad system. As a result of these efforts, we delivered a record retention rate of non-term advertiser budgets for the year. Both consumers and businesses continued to engage with Yelp as their go-to source of trusted content, and we expanded our rich local information in 2021. App unique devices rebounded organically to 91% of 2019 levels, growing 6% year-over-year despite the ongoing pandemic. Cumulative reviews increased by 9% year-over-year and 19% from 2019, exceeding 244 million. Active claimed local business locations grew by 8% year-over-year and 18% from 2019, reaching 5.8 million. We see exciting long-term opportunities to drive targeted engagement and grow our valuable audience by making Yelp an even better place to connect with local businesses. Looking ahead, we have a clear set of strategic initiatives to unlock new ways to further elevate the Yelp experience for consumers, business owners, and advertisers. As such, in 2022, we are focusing our product efforts in four areas: grow quality leads in monetization and services, drive sales through the most efficient channels, deliver more value to advertisers, and enhance the consumer experience. Each of these investment priorities represents its own long-term opportunity, and we are confident that the strength and breadth of this portfolio will provide a significant runway for growth. With that, I'd like to turn it over to David. Thanks for the full year recap, Jeremy. I will now turn to our fourth quarter results. Fourth quarter net revenue grew by 17% year-over-year and by 2% from 2019 to a record $273 million. With a structurally improved business model, much of the strong revenue performance flowed through to the bottom line, even as we increased our strategic investments in the fourth quarter. We delivered net income of $23 million and $68 million of adjusted EBITDA, representing a 25% adjusted EBITDA margin. Advertising revenue from services businesses increased by 13% year-over-year to $157 million, and our efforts to increase monetization as well as deliver more value to advertisers contributed to another quarter of record revenue per location in these categories. At the same time, ad revenue from restaurants, retail and other categories increased by $5 million from the third quarter and by 24% year-over-year to $104 million despite new COVID-19 variants, along with ongoing labor and supply chain issues. Paying advertising locations grew by 2% year-over-year to 528,000, though decreased slightly from the third quarter amid ongoing volatility in the macro environment. However, we were pleased to see that paying advertising locations increased over the course of the quarter to reach a pandemic high in the month of December, largely driven by our multi-location restaurants, retail and other customers. In addition to maintaining a healthy cash balance to fund our operations, while leaving a buffer for potential tuck-in acquisitions, returning excess capital to shareholders through share repurchases is an important element of our overall capital allocation strategy. As of December 31, we had repurchased nearly $1 billion worth of shares since our initial repurchase authorization in 2017. This includes $263 million worth of shares repurchased in 2021 and $85 million repurchased in the fourth quarter. As of December 31, we had $232 million remaining under our existing repurchase authorization. We plan to continue repurchasing shares subject to market and economic conditions. Turning to our outlook, Yelp's record 2021 performance is a testament to the strength of and consistent execution against our strategic initiatives. As we enter 2022 following a strong performance, we believe we continue to have a large opportunity in local advertising with Yelp well positioned to drive long-term profitable growth. As such, we expect 2022 net revenue to fall in the range of $1.16 billion-$1.18 billion. We also expect adjusted EBITDA for 2022 to fall between $260 million and $280 million. For the first quarter of 2022, we expect net revenue of $260 million-$270 million and adjusted EBITDA of $35 million-$45 million, reflecting seasonal trends and increased strategic investments to fuel our initiatives. On an absolute basis, we expect net revenue will grow consistently from quarter to quarter for the balance of the year as the benefits of our initiatives build. We also expect expenses will remain relatively flat throughout the year after increasing in the first quarter from the fourth quarter of 2021. In addition, we expect our GAAP tax rate for 2022 to increase to approximately 38%. A significant driver of this increase comes as a result of the new requirement to amortize certain research and development expenses under the 2017 US Tax Cuts and Jobs Act. Although there is pending legislation in Congress to repeal this requirement or defer it to 2026, the outcome of that legislation is uncertain. In summary, Yelp's 2021 results demonstrate that we have transformed Yelp into a more efficient business. Our teams have consistently executed amid a difficult operating environment, providing us with continued confidence in our ability to drive long-term sustainable and profitable growth. We are excited for the opportunities ahead to connect more people with great local businesses in 2022, and we remain focused on generating long-term shareholder value. With that, operator, please open up the line for questions. Thank you. As a reminder, if you'd like to ask a question, it is star one on your telephone keypad. If for any reason you would like to remove that question, it is star two. Again, to ask a question, it is star one. As a reminder, if you are using a handset, please pick up your handset before asking your question. We will pause here briefly as questions are registered. Our first question is with Justin Patterson of KeyBanc. Great. Thank you very much. Two, if I can. First, on multi-location and self-serve, congratulations on the record performance in those channels amid a very difficult operating year. How should we think about just further progress in 2022 across those channels and how large they could get? That's question number one. Then number two, I noticed you called out iOS users as having more ad engagement than Android users. What do you think is driving that, and what can be done with the user experience to achieve parity? Thank you. Hey, Justin, I can take the first. This is Jed. Yes, we were really pleased with the strong performance in the fourth quarter with both the multi-location channel as well as the self-serve channel. You know, we've been talking about it for a couple years now. It's really kind of a pillar of our long-term strategy to invest in those channels. You know, we made the shift from largely being driven by local sales to both self-serve and multi-location, that was obviously accelerated by COVID. You know, right now, those two channels represent approximately 45% of our ad revenue in 2021, and we believe there's considerable room for growth. You know, self-serve specifically was up 65% from 2019, and multi-location up 15% from 2019. You know, we believe that from a product perspective, there is a deep vein of projects that we can do to continue to drive those two components of our business. We're really pleased with it and feel in a good position heading into 2022. I'll take the second question there, Justin. You know, when you are pointing to how on iOS there's more ad clicks and engagement than Android. You know, why were we pointing to that? Well, it's really about you know one of our priorities this year, which is enhancing the consumer experience. We see a lot of opportunity to grow our audience and increase engagement, streamline contributions. We know we have really trusted content, and we know that you know the more people that see that will find value. We just wanted to pick a very clear example of the low-hanging fruit that is out there for us. You know, when we look between those two platforms, we see that iOS you know is more performant than Android. When we look at the actual applications, our Yelp app on Android devices, it's just lagged behind iOS. Like the features aren't all there. It hasn't gotten as much love and attention from our product and engineering team. The good news there is that's pretty straightforward. You know, how close can we get it to iOS, I think is an open question, but we definitely see a ton of opportunity to improve the experience there and close the gap. Great. Thank you. Our next question is with Mike Ng of Goldman Sachs. Hey, good afternoon. Thank you very much for the question. I was just wondering if you could talk a little bit more about the home services revenue in the quarter. It's good to hear about the strength relative to 2019. I was just wondering if there are any headwinds there from supply chain challenges and just the tight labor market, and whether you expect that to improve as we go into 2022. As a separate housekeeping item, I was just wondering if you could talk a little bit about your expected trajectory of paying advertising locations as we move through 2022. Thank you. Sure. I can take that, Mike. You know, in terms of services revenue, it did slow down slightly during Q4. You know, a lot of that was due to seasonality and some of the continued macro impacts that associated with COVID, that you had mentioned. You know, despite that, we still hit, you know, a record revenue per paying advertising location and services, as our products really continue to resonate well with our advertisers. You know, while consumer spend may shift somewhat to other categories as things normalize, there remains plenty of runway to drive growth from a revenue perspective. We believe, you know, kinda driving revenue both from existing advertisers as well as folks who are not yet on the platform, you know, feel really good about where we sit on the services side. You know, we have a product pipeline that we believe supports, you know, driving long-term growth and profitable growth. In terms of PALs, you know, overall PALs for the quarter, we did see an acceleration of PALs throughout the quarter and ended up at a kind of a record for at least the pandemic era in December. You know, again, there were some kind of seasonal and pandemic-related headwinds early in the quarter, but we feel really comfortable with where that's going. Long term, again, we wanna drive both, you know, revenue per PAL as well as those users. We believe that, you know, we're set up well to do that in 2022. Great. Thank you very much. Our next question is from Shweta Khajuria of Evercore. Okay. Thank you. Let me try two, please. Your first quarter guidance came in slightly lighter than we were expecting or the street was expecting, but the full year 2022 guidance is largely in line to better. Perhaps if you could help us think through the cadence of the year, what gives you the confidence in back half acceleration in, let's say, top line growth? That'd be very helpful. Then the second is, I guess one way to look at it is the low-hanging fruit is seeing ad locations down 8% versus 2019 in the RR&O category versus revenue, I think you mentioned 19% versus 2019. Help us think about how to think about that as an opportunity for you. When do you think you would be at 2019 levels for that category? Thank you. Shweta, this is David. Thanks for your question. In terms of the performance on revenue through the course of the year, we really see it stacking evenly quarter to quarter to quarter, relatively so. Our confidence comes from the execution that we've delivered over the past several years. As Jed and Jeremy have both talked about, we have a robust pipeline of initiatives to drive performance. I think one thing that's really important to underscore is that consistency of delivery. That's what we're focused on providing. There is some seasonal effect as well as we go through the year, so that's also a factor. Fundamentally, what we wanna do is, with our portfolio of initiatives, deliver consistently across our strategic initiatives. Hi, Shweta. I can take the second on RR&O. Obviously a difficult period broadly for restaurants and retail over the past couple of years. You know, we're really pleased with kind of the recovery we've seen thus far, even though we're kinda not back to full 2019 levels. You know, we've maintained many of our customer relationships throughout the pandemic. I think we're about 14% below 2019 in the fourth quarter of this year. That really for us remains an opportunity. While we can't tell you the exact timing of full recovery, obviously there have been some uncertainties, we do feel like that is sitting in front of us and an opportunity to continue to deliver value for those customers. As you know, the economy continues to kind of get into full recovery mode, we believe we'll be a beneficiary there. Okay, thank you. Our next question is from John Colantuoni from Jefferies. Hi, guys. This is David on for John. Thanks for taking the question. You've talked about how Yelp only monetizes about 25% of leads through the platform in the services category, which I believe has more than doubled in just a few years. While it seems like you still have a long runway to continue improving lead monetization, can you give us directional sense for how high that 25% could eventually get? I assume it's partially a function of what percentages of services professionals Yelp has advertising with on the platform relative to the number of leads in the category that you generate. Thanks. Hi, David, this is Jeremy, so I can hop on for this question. We have made a lot of progress, striking progress in driving a higher percentage of monetized leads flowing through the system, which is really great. I guess I'd point out, you know, while there is still plenty of headroom in that number, you know, there's also quality improvements that we can make that can drive even more value. When you think about, you know, just driving more leads, well, the quality of those leads actually matters quite a bit to that end customer, the advertiser that's paying for it. I think there's actually two components there, driving the percentage up, but then also working on delivering the value that that advertiser really expects. The more efficient we get at that, the better. There's two angles that we'll continue to be working on there in 2022. Great. Thanks. Our next question is with Dan Salmon of BMO. Great. Good afternoon, everyone. I have a specific question and then I guess more of a broad one. Specifically, Jeremy, can you expand on the comments you made about increasing targeted communications with business owners? I think the letter mentions, you know, building more engagement with that group with some of your free offerings through market insights, but I'm curious, is there also some paid media spending to support that also baked into that comment? Anything else you can share on that strategy would be interesting. The broader question, I guess, is a bit of a follow-up on the last one is just when I think about the services category performance is obviously very important. I guess my question is whether you think there are lessons you can take from that category and apply to restaurant, retail, the other categories that have been more impacted by COVID as they hopefully begin to stabilize. Thanks. Sure. Hi, Dan. I can try and take these here. You know, reaching SMBs. Well, you know, I guess I'd start with looking at our performance in self-serve. You know, we've managed to grow that dramatically. It now comprises 17% of our advertising revenue in 2021, which is incredible growth. You know, how are we doing that? Well, it is increasing the ways that we communicate with business owners. That can be through performance advertising. It can also be through improvements in the claiming flow as businesses get to Yelp. It can be improvements in the experience that they get once they sign up, as well as the communications they receive from us, you know, via email marketing campaigns, et cetera, et cetera. There is a lot of different touch points for us in reaching SMBs, and not to mention sort of our legacy infrastructure, which is, of course, our great sales team. We have a number of different ways to reach out to local businesses. On top of that, the performance of the ad system keeps getting better and better. You may have noticed that our ad clicks were up 24% year-over-year, and our CPCs were actually down 5% year-over-year. What that says, in my view, is that, you know, there's more value flowing to advertisers, and they're actually getting- Mm-hmm ... more value in terms of pricing. You know, that's really good, I think, for the long term, as well as for the growth opportunity ahead of us. You mentioned, you know, services. Obviously, there's been some nice performance there. Is there anything we can take away and apply to restaurant, retail, and other? I think, you know, we're seeing a nice healthy recovery in restaurant, retail, and other. I'm not sure that there's really takeaways there. I think what, you know, there's obviously that space is being held back by the macro factors of pandemic, supply chain, labor issues, all sorts of things going on. You know, I think there is upside in there. That's a great opportunity for us. I don't know that, you know, what's happening with a plumber, you know, are we doing anything that's really special that we haven't Right Done in, you know, the restaurant category. I think it's more about the external forces. That said, you know, as Jed mentioned, we are maintaining relationships there. We're trying to be a constructive partner, and we have been seeing recovery. No, that's great. Okay, that's helpful. Thank you, Jeremy. There are currently no further questions. As a reminder, it is star one on your telephone keypad. There are no further questions registered. That concludes this call. Thank you for joining the Yelp fourth quarter and full year 2021 earnings call. Thank you for your participation. You may now disconnect your line.