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Zynga, Incorporated (NASDAQ:ZNGA Surpasses 3Q Revenue Estimates, Confident On 4Q Estimates

Boston, MA, 11/22/2013 (wallstreetpr) – Beating analyst estimates, online games company Zynga, Incorporated (NASDAQ:ZNGA) disclosed better financial results for its third quarter of 2013, with $203 million in revenue and a net loss of $0.68 million, underlining a good recovery in addition to surpassing the $35.6 million loss expectations of analysts. Zynga’s third-quarter earnings are progressively ahead of its $188 million netted for its second quarter of 2013. The improved results are significantly attributed to the game publisher’s recent slew of cost-cutting measures, coupled with renewed focus on its prime revenue generator – mobile games spearheaded under a new CEO. Zynga, Incorporated (NASDAQ:ZNGA) now expects to see full-year profits, although marginal, with expected revenues between $175 million to $185 million for the upcoming quarter.

The game publisher, once a fast-growing gaming software firm with potential revenue growth from the Facebook Inc (NASDAQ:FB) platform, saw receding sales revenue and bottlenecks, losing financial ground, due to change in user preferences with the advent and boom of the segments of tablets and smartphones. The games maker’s online user count shrank about 50% to around 30 million in the third quarter from approximately 60 million online subscribers exactly a year ago.

Consequently, the gaming major undertook massive management and strategic restructuring including layoffs of its highest ever count of 500 employees, succeeding the hiring of its new CEO Don Mattrick in July 2013. Under Mattrick’s supervision, the company has been quick to adapt well to the current gaming trends and preferences of its customers. The creator of the casual game Farmville popular on Facebook is hopeful of seeing only a marginal profit for the full year 2013, owing to necessary accounting for items like restructuring costs, amid other exceptional items. At the end of November 22 trading on NASDAQ, Zynga, Incorporated (NASDAQ:ZNGA)’s stocks rose about 2.34% from the previous closing of $4.27 to close better at $4.37. After-hours trading figures were at $4.40.

Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.

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