The Zynga 3Q 2017 earnings results were released after closing bell, and the company posted earnings of 2 cents per share on $224.6 million in revenue. Analysts had been expecting earnings of 2 cents per share on $207.53 million in revenue. In the year-ago quarter, the company reported losses of 2 cents per share on $182.42 million in revenue. Zynga management said they beat their revenue guide for the third quarter by $14.6 million.
Zynga 3Q 2017 earnings
Net income grew to $18.1 million, while operating cash flow increased to $35.1 million. Mobile revenue rose 33% year over year to $194.4 million, while mobile bookings increased 15% to $186.5 million. Adjusted EBITDA rose to $44.6 million, beating the company’s outlook of $30 million. Ad revenue fell 1% to $46.4 million, while ad bookings declined 6% to $45.6 million.
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Bookings came in at $213.5 million, coming out ahead of their guidance by $8.5 million. Mobile user pay for revenue grew 44% year over year, an all-time high, while mobile user pay for bookings grew 20%, also a record high. Zynga said mobile represented 87% of total revenue and bookings.
“In Q3, we posted our best topline performance in over four years driven primarily by our forever franchises,” Chief Executive Frank Gibeau said in a statement with the Zynga 3Q 2017 earnings release. “We also delivered significant growth in profitability and operating cash flow year-over-year & we continue to progress toward our near-term margin goals.”
The game maker had 19 million mobile daily active users, representing a 19% year-over-year increase. It also said that mobile daily users represented 91% of its total daily active users.
Zynga issues fourth-quarter guidance
For the fourth quarter, the game maker expects revenue of about $215 million and a net release of deferred revenue amounting to $5 million. It projects $210 million in bookings, net income of $13 million and $35 million in adjusted EBITDA.
Following the Zynga 3Q 2017 earnings release, the game maker’s stock tumbled by as much as 2.71% to $3.57 in after-hours trading.