Zynga released its second quarter earnings report after closing bell tonight, posting losses of 1 cent per share on revenue of $199.9 million, a 30% increase year over year. Analysts had been looking for losses of 2 cents per share and $156.84 million in revenue. In the same quarter last year, the game maker posted 0 cents per share on $153.2 million in revenue.

Zynga Inc (ZNGA) Losses Not As Bad As Expected

Zynga (ZNGA) beats bookings, EBITDA guidance

GAAP losses per share were 3 cents, compared to losses of 7 cents per share in last year’s June quarter.

Zynga recorded $174 million in bookings, beating the high end of management’s guidance range. The game maker reported that mobile bookings rose 30% year over year to $115 million and now make up 66% of overall bookings. Advertising bookings, not including licensing or developing payments, increased 44% from last year. Adjusted EBITDA also beat guidance, coming in at $1 million compared to last year’s $14 million.

The company saw average daily active users decline 23% year over year to 21 million, while average monthly active users declined 32% to 83 million. Zynga recorded $0.091 in average daily bookings per average daily user, a 29% increase from last year. Payer conversion declined 17% to 1.6%, not including NaturalMotion.

Zynga’s Slots franchise saw a 32% sequential increase in bookings, while Empires and Allies launched around the globe with a rating of 4.5 stars on Apple’s App Store. Engagement for the game was strong with an average of five play sessions for a total of 38 minutes at 26 cents. Second quarter average daily bookings per daily user was almost three times the average bookings per use in the second quarter.

Zynga’s (ZNGA) guidance disappoints

For the third quarter, Zynga management expects revenue of between $175 million to $190 million and net losses of between $31 million and $23 million. Per-share net losses are expected to be around 3 cents. Management expects bookings of between $155 million and $170 million and adjusted EBITDA of between -$17 million and -$7 million.

They’re projecting non-GAAP losses of between 2 cents and 1 cents per share. Analysts wanted to see Zynga break even on revenue of $174.8 million for the quarter.

As of this writing, shares of Zynga were down 1.42% at $2.43 per share in after-hours trades.