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Zynga shares tank as bookings, outlook disappoint

Zynga's shares plunged on Thursday after it handed in mixed second-quarter results and lowered its full year outlook as it battles to broaden its mobile reach and boost monthly users.

The game maker said its net profit for the second-quarter broke even, which was in line with estimates, but bookings revenue dropped nearly 7 percent to $175 million, missing Street expectations.

Cars drive by the Zynga headquarters in San Francisco, California.
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Cars drive by the Zynga headquarters in San Francisco, California.

Moreover, the "Farmville" maker lowered its full-year guidance, citing the delayed launch of new games and features.

Zynga shares dropped as much as 10 percent in after-hours trading.

The game maker also said the number of monthly users fell to 130 million during the quarter, from 187 million a year ago.

"While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business," Zynga CEO Don Mattrick said. "By Q4 of this year, approximately half of our game-related research and development will be allocated to new and recently launched games."

Wall Street on average had expected bookings, an indicator of future revenue, to rise to $191.2 million in the second quarter, from $187.6 million in the same period a year earlier.

—By CNBC's Karma Allen

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