Planned strategic acquisition to advance Yelp's AI transformation and expand SaaS offerings to help services businesses grow and operate

Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced its agreement to acquire Hatch, a leading AI-powered lead management and communication platform. As AI rapidly reshapes how businesses operate, this planned acquisition will bring together Yelp's scale and trusted brand with Hatch's innovative lead management solutions, better positioning both companies to serve the evolving needs of services businesses as they embrace AI for growth.

“The acquisition of Hatch is an important step forward in Yelp’s AI transformation, accelerating our strategy to bring powerful new AI tools to local businesses,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. “Hatch is solving challenging lead management and communication pain points for services businesses, and we’ve been impressed by the innovative AI technology and traction they’ve built. I believe that by bringing our companies together we will be able to help service providers operate and grow more efficiently.”

Hatch's AI-powered customer communication platform is designed to help businesses increase conversion and retention at lower overhead costs.

“This is an incredible moment for Hatch,” said Chris Bache, Hatch’s co-founder and chief executive officer. “We've worked day in and day out to build something that truly helps our customers grow their businesses. I’m grateful to the Hatch team for all their work and dedication that brought us to this milestone. Joining Yelp means we can scale faster and help more businesses grow and succeed. The journey has only just begun, and I couldn't be more excited about what we'll accomplish together.”

Under the terms of the agreement, Yelp will acquire Hatch for approximately $270 million in cash with an additional $30 million of employee retention to be paid out over two to three years. As of November 2025, Hatch had achieved approximately $25 million in annual recurring revenue,¹ representing a year-over-year ARR growth rate of 70%, at a modestly negative cash flow. The transaction is expected to close in early February, subject to customary closing conditions. Upon the closing of the transaction, Hatch will be a wholly owned subsidiary of Yelp.

¹ Calculated as recurring subscription amounts billed to customers in November 2025, less refunds and uncollectable amounts, multiplied by 12.

About Yelp

Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.

About Hatch

Hatch (usehatchapp.com) is an AI-powered customer communication platform designed to help businesses increase conversion and retention at lower overhead costs. Using Hatch, businesses can scale personalized customer conversations, lower operational costs, and deliver exceptional experiences consistently. Hatch was founded in 2018 and is headquartered in New York City.

Forward-Looking Statements

This press release contains forward-looking statements related to Yelp’s potential acquisition of Hatch, including the anticipated timing of the closing of the acquisition and the expected benefits thereof, that are based on Yelp’s current expectations, forecasts, assumptions and beliefs that involve risks and uncertainties.

Actual results could differ materially from those predicted or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, Yelp’s ability to successfully complete and manage the acquisition and integration of Hatch, as well as those factors included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q at yelp.ir.com or the SEC’s website at sec.gov. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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