Zynga Beats Wall Street Expectations, Stock Jumps 6%

Zynga Stock Performance Q4 2012

Zynga posted better-than-expected earnings and revenue for Q4. News of the company’s increased performance helped shares jump by 6%.

The social gaming network reported earnings per share of $0.01 on revenue of $311.2 million in the December quarter. Wall Street analysts had estimated an EPS of -$0.03 on revenue of $212 million. Instead Zynga reported $261.3 million for the quarter, well ahead of $222.4 million estimates.

While Zynga shares increased some analysts believe it was the result of Wall Street’s low expectations for the software firm.

Revenues for the firm remained flat year-over-year with bookings declining by 15% compared to Q4 2011. Zynga also reported declining monthly and daily active users quarter-over-quarter.

Despite its best efforts at restructuring the company still reported a net loss of $48 million. While Zynga is still losing money it is in a much better position than it was in the same quarter one year earlier when it lost $435 million. Zynga’s larger loss was thanks in large part to employee stock compensation payouts.

Zynga posted a loss of more than $200 million in 2012.

James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at Business2Community.com and the CEO of Aven Enterprises LLC.


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