It’s a Banner Day for IPO Earnings

Investors are enjoying a trio of double-digit gains

By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor

For recent IPOs, investors were somewhat jittery about the third quarter. Would these companies’ revenue take a hit as the global economy falters?

So far, there has been little to worry about — three recent IPOs are up more than 10% in Thursday’s trading on solid earnings reports. Then again, investors had already been factoring in bad news.

So let’s take a look at some of today’s big-time gainers:

Angie’s List (NASDAQ:ANGI): Founded in the mid-1990s, the company operates a platform that allows people to post reviews about contractors. Angie’s List makes money from monthly subscriptions as well as advertising.

In the latest quarter, revenues spiked by 75% to $42 million and there was a loss of $18.5 million. The Street consensus was for revenues of $41.33 million.

On the news, the shares of Angie’s List are up 28% to $11.63. Yet this is still below the offering price of $13 (the company came public about a year ago).

Proto Labs (NYSE:PRLB): The company has a platform that makes it easy for companies to prototype new products.

In Q3, Proto Labs saw its revenues increase by 21% to $32.5 million and it earnings come to $6.7 million, or 26 cents per share. The analyst estimate was for revenues of $31.49 million and earnings of 23 cents a share.

Keep in mind that Proto Labs has been fairly immune from the global macroeconomic problems. For example, the company was able to grow in Europe and Japan.

So far in today’s trading, the shares of Proto Labs are up 20% to $36. The company came public in February at an offering price of $16.

Zynga (NASDAQ:ZNGA): Just a year ago when the company raised $1 billion in its IPO, it was the top operator in the fast-growing social gaming space. But since then, the company has been a disaster. Shareholders have lost nearly 80% since the public offering.

But with the third quarter, Zynga was able to gin up some excitement. That is, the company announced a partnership with U.K.-based gaming firm The deal will involve 180 titles for categories like slots, blackjack and roulette. The launch is expected for the first half of 2013.

What’s more, Zynga’s FarmVille 2 has turned into a big hit, with 60 million monthly users. The game came out in early September.

Despite all this, Zynga continues to struggle to find growth, with sales up only 3% in the third quarter. But investors are still hopeful. In today’s trading, the shares are up 12% to $2.38.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

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