Zynga Inc, Yelp Inc Shares Fall After Earnings Reports

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Zynga and Yelp released their latest quarterly earnings reports after closing bell tonight. Zynga reported GAAP revenues of $190.5 million, which beat the high end of management’s guidance range.

Yelp reported non-GAAP earnings of 27 cents per share on $194.8 million in net revenues, compared to the consensus estimates of 3 cents per share and $194.5 million in revenue. In the year-ago quarter, the company reported 11 cents per share in non-GAAP earnings.

Zynga produces mixed results

Zynga’s GAAP net loss improved 31% year over year to $162.4 million, although that was below the guidance range. Deferred revenues rose $11 million to surpass guidance by $6 million. Bookings also beat management’s guidance coming in at $201.5 million for an 11% year over year increase. Adjusted EBITDA missed guidance, coming in at $10.6 million. Management blamed the miss on platform fees due to higher revenue deferrals.

Zynga’s mobile revenues grew 20% to $154.7 million, making up 81% of total revenues. Mobile bookings amounted to 83% of total bookings or $167.1 million. Average mobile daily users grew 5% to 16 million. Ad and other revenues fell 11% year over year to $50.4 million.

For the current quarter, Zynga expects GAAP revenue of about $185 million and a GAAP net loss of $16 million. The game maker looks for a $5 million increase in deferred revenue, $190 million in bookings, and $14 million in adjusted EBITDA.

Shares of Zynga edged lower in after-hours trades, falling by as much as 0.79% to $2.50.

Yelp swings to profit

Zynga Inc, Yelp Inc Shares Fall After Earnings Reports

Yelp’s GAAP earnings rose to 10 cents per share from losses of 29 cents per share in the year-ago quarter. Adjusted EBITDA rose to $45.3 million from $17.5 million in the same quarter a year ago. Local revenues rose 36% to $171.1 million, while transactions revenues jumped 19% year over year to $16.6 million.

Cumulative reviews rose 27% year over year to about 11 million, while app unique devices increased 20% to a monthly average of about 24 million. Yelp grew the number of local ad accounts 24% year over year to about 138,000.

For the current quarter, the company expects $195 million to $199 million in net revenue and adjusted EBITDA of $25 million to $28 million. It expects $880 million to $900 million in revenue and $150 million to $165 million in adjusted EBITDA for the full year.

Shares of Yelp plunged by as much as 7.88% to $38.22 in after-hours trades.

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