What happened Shares of local business-connection platform Yelp (NYSE: YELP) went up on Friday after the company reported results for the third quarter of 2020. The stock dropped immediately after it reported yesterday -- an indication that investors didn't like the initial numbers. However, as of 3:45 p.m. EST, Yelp stock is up 9.5%, suggesting the company's forward guidance is the real reason shares are rising. So what For Q3, Yelp's revenue was down 16% year over year to $220.8 million. And through the first three quarters of 2020, revenue is down 14% from the comparable period of fiscal 2019. That's because with restaurants and small businesses disproportionately impacted by the COVID-19 pandemic, there's been less need for Yelp's platform. Image source: Getty Images. Still, things are improving for Yelp. Q3 revenue was down from last year, but it was up 35% quarter over quarter, reflecting an easing to stay-at-home guidelines. Turning to the bottom line, it's been a tough year for Yelp. Through three quarters, the company has recorded a net loss of $40.5 million. However, this too is rapidly improving. Its Q3 net loss was just $1 million. Now what For the upcoming fourth quarter, Yelp's management is guiding for $220 million to $230 million in revenue. That could all change of course if physical-distancing guidelines get more strict in coming months, but it's the best guidance management can give based on the current reality. For perspective, the company reported revenue of $236 million in the fourth quarter of 2019. While 2020 has challenged Yelp, this small-cap stock remains well capitalized with $591 million in cash and cash equivalents on the balance sheet, and minimal long-term liabilities. Perhaps it's this strong balance sheet that gives management confidence to resume its share-buyback program despite the ongoing uncertainty. The company has $269 million of authorization outstanding on its current plan. 10 stocks we like better than YelpWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Yelp wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source