Yelp Shares Climb 4.2% as AI Host Hits 1 Million Calls and Expands With OpenTable

SAN FRANCISCO — Shares of Yelp Inc. rose 4.2% in morning trading Tuesday, extending recent gains as the local reviews company highlighted progress with its artificial intelligence tools for restaurants and continued momentum from a content licensing deal with OpenAI.

Yelp stock advanced $1.11 to $27.51 as of 10:42 a.m. EDT, building on a 5.2% gain the prior session. The move comes as investors focused on the company's push into AI-powered services that go beyond traditional advertising revenue.

Yelp announced that its AI phone answering service, Yelp Host, has surpassed 1 million calls handled. The company expanded the product to include food ordering capabilities over the phone and integrated it with OpenTable's reservation network in the United States and Canada. Guests can now book, modify or cancel reservations by phone through Yelp Host, with bookings syncing automatically to OpenTable in real time.

The expansion adds support for 16 additional languages. Akhil Kuduvalli Ramesh, Yelp's chief product officer, said the platform helps restaurants manage inquiries in ways "generic solutions can't match."

Yelp Host, launched as an AI-powered call answering service for restaurants, answers incoming calls, manages reservations, shares wait times, blocks spam and answers common questions. Pricing starts at $249 per month after a free trial period. Company executives have previously estimated a market opportunity exceeding $1 billion in the United States for the product.

The announcement builds on earlier updates. In the first quarter, Yelp Host reached an annual run rate of more than 1.5 million calls handled by April, more than doubling from January levels. Management has described strong restaurant demand and plans to further expand functionality.

Separately, Yelp continues to benefit from attention around its July 23 licensing agreement with OpenAI. Under the deal, ChatGPT can use Yelp's reviews, photos, ratings and business information to respond to local queries. Yelp branding and links appear when the content is used. A "Request a Quote" feature is also planned, allowing ChatGPT users to contact local service providers directly.

Yelp Chief Executive Officer Jeremy Stoppelman told Axios the partnership reflects the value of the company's data. "If you want to answer local queries, you really need Yelp," he said. He added that distributing content beyond Yelp's own platform can still create value for the company: "Ultimately, we believe that if we allow our content outside the walls of just Yelp, and we provide it in useful ways to consumers ... value does accrue back to Yelp."

The OpenAI agreement is non-exclusive and financial terms were not disclosed. It follows earlier data licensing arrangements Yelp has with platforms including Apple Maps, Amazon Alexa, Microsoft Bing and others. Stoppelman has noted that local intent remains a significant portion of search activity and that high-quality, human-written reviews provide an advantage.

Yelp is scheduled to report second-quarter 2026 financial results after the market closes on Aug. 6. In the first quarter, the company posted net revenue of $361 million, up 1% year over year. Advertising revenue from restaurants, retail and other categories declined 11%, while services advertising rose modestly and other revenue grew 75%, driven by contributions from Hatch, data licensing and food ordering.

Adjusted EBITDA was $79 million. The company reiterated full-year 2026 guidance for net revenue of $1.455 billion to $1.475 billion and adjusted EBITDA of $310 million to $330 million. It is targeting an annual run rate of $250 million in other revenue by the end of 2028.

Yelp has been investing in AI transformation, including the launch of an expanded Yelp Assistant for local discovery across categories and the acquisition of Hatch, an AI lead management platform for service professionals, earlier in the year. The company has also been returning capital to shareholders through share repurchases.

Analysts maintain a Hold consensus rating on the stock, with an average price target near current levels. Shares have declined more than 20% year to date amid pressure on core advertising revenue and fewer paying advertisers, though the stock remains well above its 52-week low of $19.60.

The dual focus on expanding AI tools for businesses and licensing content to major AI platforms positions Yelp to capture new revenue streams as consumer behavior shifts toward chat-based discovery. Restaurant operators face ongoing challenges with missed calls during peak periods, which can lead to lost bookings and orders. Yelp Host aims to address that by providing 24/7 automated handling while integrating with existing reservation systems.

Market participants will watch the upcoming earnings report for updates on advertising trends, the contribution from other revenue sources and further details on AI product adoption. Yelp's shares have shown sensitivity to news on partnerships and product progress in recent sessions, reflecting investor interest in the company's ability to diversify beyond traditional search-driven advertising.

The broader environment for local businesses remains mixed, with management previously noting challenging conditions for advertisers. Strength in services categories and newer offerings has helped offset some of the weakness in restaurants, retail and other advertising. Data licensing and AI tools represent efforts to build higher-margin, recurring revenue that is less dependent on consumer ad clicks.

Yelp, founded in 2004, operates a platform connecting consumers with local businesses through user-generated reviews, photos and ratings. It generates the majority of its revenue from performance-based advertising sold to local merchants. The company employs roughly 5,000 people and continues to emphasize trust and safety measures alongside its technology investments.

Tuesday's advance leaves the stock trading with a market capitalization of about $1.5 billion. Volume and broader market conditions will influence whether the gains hold through the close. Investors remain focused on execution of the AI strategy and the pace of revenue diversification as the company approaches its next quarterly report.