Social game maker Zynga surprised Wall Street by posting earnings that, while still a loss, beat expectations. It also said that it would lay off 15 percent of its workforce and that it is buying a U.K.-based mobile game company.
A week ahead of its scheduled earnings announcement, Zynga posted fourth-quarter revenue of $147 million, which is $6 million better than expected but still down from $261 million in the year-earlier quarter. A quarterly loss of three cents was a penny better than analysts projected.
User numbers aren't pretty and continue to decline across the board. Daily active users were down 12 percent from the third quarter, while monthly active users declined 16 percent. One piece of good news: Gamers who stuck around are paying more. Average daily bookings, or payments, per average daily active user rose 10 percent between the third and fourth quarters.
They company also said it would cut 15 percent of its workforce, or 314 employees.
"We took layers out of the reporting structure, we got more focus more discipline," CEO Don Mattrick said. "We feel like we've made a lot of progress to achieve future growth in 2014."
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