Zynga reports third-quarter earnings
By Hayley Tsukayama,
Zynga reported third-quarter earnings Wednesday, and while the picture was grim, investors seem to think the social gaming giant has a solid vision for the future.
The company's shares shot up over 14 percent immediately after the company released its earnings, saying that it would start a $200 million stock buyback and a partnership with the British real-money gambling site bwin.party.
Zynga reported a net loss of $52.7 million on $316.6 million in revenue — an increase of 3 percent over the same period last year.
The results follow on the heels of the company’s announcement that it will cut 150 jobs, or about 5 percent of its workforce, and streamline its product portfolio in an effort to cut costs.
In a statement, Zynga Chief Executive Mark Pincus acknowledged that it has been a difficult few months but pointed to the success of FarmVille 2 and ChefVille as bright spots for the company.
“While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming,” Pincus said. “It’s more clear than ever that along with search, shop and share, play is a fundamental pillar of the Internet, and Zynga continues to be the leader.”
Zynga also reported that active users increased 10 percent from the same period last year, from 54 million to 60 million, though the company made 19 percent less from each active user.