Zynga revenue tops forecasts; shares soar
Zynga, creator of games including "FarmVille" and "Words with Friends," reported its loss narrowed sharply. Revenue dropped 36 percent but beat expectations.
After the earnings announcement, the company's shares shot up more than 14 percent in after-hours trading. What is Zynga stock doing now? (Click here to get the latest quote.)
Zynga reported its loss narrowed to $68,000, or 2 cents a share, in the third quarter, from $52.7 million, or break-even on a per-share basis, in the year-earlier period.
Bookings fell to $152.1 million from $255.6 million a year ago.
Analysts had expected the social video game maker to report a quarterly loss of 4 cents a share and $143 million in bookings, according to a consensus estimate from Thomson Reuters.
The company also said it expects to post a loss of 4 to 5 cents a share for the fourth quarter on $130 million to $140 million in bookings vs. expectations of a 3-cent loss and $148 million in bookings.
The game publisher, which once experienced rapid revenue growth from popular PC-based games such as FarmVille on Facebook, has sought to regain its financial footing by transitioning to smartphones and tablet titles, the increasingly preferred format for casual gamers.
Zynga said it hired Clive Downie, an executive from a mobile gaming company, to be its new chief operating officer overseeing mobile game distribution and other business functions.
"Our teams are working hard to compete more aggressively on the web, move to mobile and develop new hits," company CEO Don Mattrick said in a statement. "Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track ..."
—Reuters contributed to this report.