Yelp (YELP) reports after hours Tuesday 10/29/13

• buying puts

** daily **

** weekly ** 

** daily - Heikin **

***** AFTER EARNINGS *****

Yelp’s YELP -5.90% shares slid nearly 6% in after-hours trading, with much of the decline coming after the company announced plans to sell an additional $250 million in stock for additional “working capital” for the money-losing online review service.

For the quarter ended Sept 30, Yelp said it lost $2.3 million, or 4 cents a share, on revenue of $61.2 million. During the same period a year ago, Yelp lost $2 million, or 3 cents a share, on sales of $36.3 million.

Sales and marketing, Yelp’s biggest expense item, also grew to $34.1 million from $21.3 million in last year’s third quarter.

Wall Street analysts had forecast Yelp to lose a penny a share on $59.4 million in revenue.

Yelp said that it continued to see growth in business accounts, which rose 61% from a year ago, to 57,200 accounts. Average monthly unique visitors reached 117 million, up 41% from the third quarter in 2012.

Yelp also said 62% of searches done on the site were made over mobile devices, and that its mobile app was used of an average of 11.2 million devices during the quarter.

For its fourth quarter, Yelp expects revenue between $66 million and $67 million, while analysts had forecast the company’s sales at $64.9 million.