Written by Michelle Jones
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%.
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.
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