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

Updated on

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

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.

Leave a Comment