(CNBC) Yelp cratered as much as 32 percent Friday, a day after releasing third-quarter earnings that revealed advertisers are abandoning the site and denting revenue.

The company added zero net new advertising customers during the quarter. Yelp earlier this year switched from long-term advertising contracts in local markets to more flexible, nonterm contracts. That change resulted in significant contract cancellations.

Though the cancellations were expected, Yelp failed to compensate with lower-than-expected gross customer adds. The company reported revenue of $241 million for the quarter, just shy of analyst projections of $245 million.

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