Zynga Inc posts smaller 4Q net loss, flat revenue
The results exceeded Wall Street's muted expectations and Zynga Inc.'s battered shares increased 8 percent in after-hours trading after the release of the results. After a difficult 2012 in which Zynga saw its stock price decline by 75 percent, CEO Mark Pincus called 2013 a ``pivotal transition year'' for the company as it seeks to cut costs further and broaden revenue sources, especially from mobile games.
The San Francisco company behind ``FarmVille'' and ``CityVille'' lost $48.6 million, or 6 cents per share, in the October-December period. That compares with a loss of $435 million, or $1.22 per share, in the same period a year earlier. Zynga began trading publicly on Dec. 16, 2011, and was privately held for most of the 2011 quarter.
Zynga's revenue was largely unchanged at about $311 million. But it was well above analysts' average estimate of $250 million, as polled by FactSet.
For the current quarter, Zynga said it expects an adjusted loss of 5 cents to 4 cents per share and revenue of $255 million to $265 million. Analysts were predicting a loss of 1 cent per share and revenue of $268 million.
Zynga cut fourth-quarter expenses by two-thirds, to $274 million from $798 million, as demand for its games, which are played mainly on Facebook, has weakened. In October, the company announced that it
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