Zynga and Groupon released their third quarter earnings reports after closing bell tonight. Zynga posted earnings of 0 cents per share and revenue of $195.7 million. Analysts had been expecting losses of 1 cent per share and $169.94 million in revenue.
Groupon posted adjusted earnings of 5 cents per share and revenue of $713.6 million. Analysts had been expecting earnings of 2 cents per share and revenue of $732.74 million for the quarter.
Zynga still losing users
Zynga’s GAAP losses were 3 cents per share. The game maker recorded $176 million in bookings and $12 million in adjusted EBITDA, both of which beat the high end of management’s guidance. Mobile bookings rose 26% to $121 million, making up 69% of total bookings. Advertising and other bookings increased 39%.
Odey's Brook Absolute Return Fund was up 10.25% for the third quarter, smashing the MSCI World's total return of 2.47% in sterling. In his third-quarter letter to investors, which was reviewed by ValueWalk, James Hanbury said the quarter's macro environment was not ideal for Brook Asset Management. Despite that, they saw positive contributions and alpha Read More
The number of Zynga’s daily active users fell 21% year over year, with a 5% decline in mobile users and a 55% decline in web users. Monthly active users fell 27%, while average bookings per daily user increased 27%.
Zynga expects fourth quarter revenue to be between $170 million and $185 million and net losses of between 8 cents and 6 cents per share. The game maker projects bookings of between $165 million and $180 million, adjusted EBITDA of between -%5 million and $5 million, and adjusted losses of 1 cent to 0 cents per share.
Shares of Zynga rose by as much as 0.41% to $2.26 per share.
Groupon’s adjusted EBITDA beats slightly
Groupon posted a GAAP loss of 4 cents per share. Adjusted EBITDA was $56.3 million, compared to last year’s $63.9 million. Analysts had been looking for about $56.2 million. Gross billings were $1.47 billion, an increase from last year’s $1.49 billion. Globally, billings declined on a reported basis, but in constant currencies, billings increased 6% year over year. North America billings rose 12%.
The company saw a 1% increase in global units to 52 million, including an 11% increase in North America. At the end of the quarter, Groupon had almost 570,000 active deals and 48.6 million active customers, a 4% year over year increase. The trailing 12-month billings per active customer fell from $137 last year to $132 this year.
Groupon has been aiming to reaccelerate sales in its Local business in North America to bring them higher than a 10% growth rate year over year. In the second quarter, the company’s Local segment clocked a 5% growth rate in sales. Groupon has also been aiming to reverse the decline of its Local segment in Europe, the Middle East, and Africa following the second quarter’s 13% decline.
For the fourth quarter, Groupon projects revenue of between $815 million and $865 million and adjusted EBITDA of between $40 million and $60 million. The company projects non-GAAP earnings of between a loss of 1 cent per share and income of 1 cent per share.
Groupon also announced tonight that it named Rich Williams as CEO to take over from Eric Lefkofsky.
Shares of Groupon fell by as much as 0.74% to $4.03 per share in after-hours trading.