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.