Yelp plunges after sales outlook misses estimates

Yelp shares slumped by as much as 11% in after-hours trading Thursday after the company's projection for first-quarter sales missed analysts' expectations.

The business-reviews site said it expected first-quarter revenue in a range of $195 million to $199 million. But analysts had estimated $204.4 million, according to Bloomberg.

Yelp reported adjusted earnings per share (EPS) of $0.27 for the fourth quarter, topping the forecast for $0.25. Net revenue was $194.8 million, a hair above the estimate for $194.4 million. "We had an outstanding year, growing local revenue by 39%," said CEO Jeremy Stoppelman in the earnings release.

The stock's drop in after-hours trading was a blip, as it gained 129% in the year through Thursday's market close.