Electronic Arts Inc. Shares Rise, Yelp Inc Tanks After Earnings, Revenue Miss

Electronic Arts Inc. Shares Rise, Yelp Inc Tanks After Earnings, Revenue Miss

Electronic Arts and Yelp released their latest earnings reports after closing bell tonight. Electronic Arts posted $1.81 per share in diluted earnings on $1.5 billion in total revenue. In the same quarter a year ago, the game maker reported earnings of $2.79 per share and $1.31 billion in total revenue.

Yelp posted adjusted earnings of 19 cents per share on $197.3 million in revenue, compared to the consensus numbers of 16 cents per share in losses on $198.2 million in revenue. In the same quarter a year ago, the company reported earnings of 8 cents per share and $158.6 million in revenue.

Electronic Arts

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Electronic Arts shares rise

Electronic Arts said digital net revenue grew to $934 million from $715 million in the same quarter a year ago. Packaged goods and other net revenue was flat at $593 million.

For fiscal 2018, Electronic Arts expects net revenue of about $5.075 billion with a change in deferred net revenue of about $25 million. It expects net income of about $1.125 billion and diluted earnings per share of about $3.57 for the full year.

The game maker also announced a new share repurchase program under which it will buy back up to $1.2 billion worth of its stock. The new program expires in May 2019. Shares of Electronic Arts edged upward, rising by as much as 4.42% to $100.25 after tonight’s earnings results.

Yelp shares tank

Yelp posted a GAAP loss of 6 cents per share versus last year’s loss of 20 cents per share. Adjusted EBITDA rose to $29.3 million from $13 million in the year-ago quarter. Yelp had guided for $195 million to $199 million in net revenues and $25 million to $28 million in adjusted EBITDA for the quarter. Ad revenue rose 24% to $177 million, while transactions revenue grew 25% to $18.1 million. Other services revenue surged 107% to $2.2 million.

Cumulative reviews grew 26%, while app unique devices increased 22% and paying advertising accounts grew 17%.

Shares of Yelp tanked by as much as 25% to $25.94 after the print.

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