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Zynga matches 3Q net income expectations, tops revenue forecasts

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SAN FRANCISCO — Zynga Inc. on Thursday reported a wider third-quarter loss, weighed down by higher expenses and lower revenue from its online games.

But its revenue topped Wall Street expectations and its stock rose 6 percent in after-hours trading.

The company lost $57.1 million, or 6 cents per share, compared with a year-earlier loss of $68,000, or breakeven per share. Losses, adjusted for one-time gains and costs, were 1 cent per share.

The results met Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was also for a loss of 1 cent per share.

The maker of "FarmVille" and other games posted revenue of $176.6 million in the period, down 13 percent from last year but beating Street forecasts. Analysts expected $171.7 million, according to Zacks.

Quarterly expenses rose 15 percent, reflecting in part a 24 percent jump in research and development expenses. Mobile bookings — a precursor to revenue — now represent 55 percent of total bookings, up 5 percent from the second quarter.

For the current quarter ending in December, Zynga expects its results to range from a loss of 1 cent per share to earnings of 1 cent per share on an adjusted basis, with revenue of $170 million to $200 million.

The San Francisco-based company expects full-year adjusted results to range from a loss of 2 cents per share to breakeven per share, with revenue ranging from $668 million to $698 million.

Analysts surveyed by FactSet forecast breakeven earnings per share on revenue of $198.6 million for the fourth quarter, with a full-year loss of 1 cent per share on revenue of $707.5 million.

In after-hours trading, Zynga shares added 14 cents to $2.50.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. ZNGA stock research report from Zacks.

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Keywords:Zynga,Earnings Report

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