Zynga reports EPS in-line, beats on revs; guides Q4 EPS below consensus, revs below consensus (3.67 -0.19)
- Reports Q3 (Sep) earnings of $0.02 per share, in-line with the Capital IQ Consensus of $0.02; revenues rose 23.1% year/year to $224.6 mln vs the $211.98 mln Capital IQ Consensus.
- Average mobile DAUs of 19 million; up 19% Y/Y
- Mobile user pay revenue was up 44% Y/Y, and mobile user pay bookings were up 20% Y/Y
- "We had a strong Q3, delivering our best revenue and bookings performance in over four years...Bookings were $213.5 million, above our guidance by $8.5 million, and up 9% year-over-year. Our mobile user pay hit an all-time high for both revenue and bookings, up 44% and 20% year-over-year, respectively. Mobile now represents 87% of our total revenue and bookings," said Frank Gibeau, CEO of Zynga."
- "This represents the first time since we went public that Zynga has delivered two consecutive quarters of net income. We remain on track to deliver our improved margin goals by the end of 2018 and, over the long-term, we're focused on achieving margins in-line with our peers."
- Co issues downside guidance for Q4, sees EPS of $0.01 vs. $0.03 Capital IQ Consensus Estimate; sees Q4 revs of $215 mln vs. $222.24 mln Capital IQ Consensus Estimate.
- We continue to expect full year 2017 advertising to decline slightly Y/Y. This is primarily driven by web declines as well as softer pricing in the mobile gaming advertising market.