Zynga posts deeper 2Q loss, weak outlook
Zynga Inc. (ZNGA) on Thursday reported a wider loss in its second quarter. The online game maker's revenue forecast fell well short of estimates and its stock tumbled after hours.
The San Francisco-based company posted a loss of $62.5 million, or 7 cents per share, compared with a loss of $15.8 million, or 2 cents per share, in the same quarter a year earlier.
Earnings, adjusted for one-time gains and costs, came to breakeven on a per-share basis. The average estimate of analysts surveyed by Zacks Investment Research was breakeven on a per-share basis.
The maker of "FarmVille" and other online games said revenue dropped 34 percent to $153.2 million from $230.7 million in the same quarter a year earlier, and missed Wall Street forecasts. Analysts expected $192.1 million, according to Zacks.
For the current quarter, Zynga expects adjusted earnings of 1 cent to a breakeven per share on revenue of $160 million to $170 million. Analysts are forecasting earnings of 1 cent per share on revenue of $214.7 million, according to a poll by FactSet.
Zynga's stock fell 19 cents, or 6.5 percent, to $2.73 in extended trading after the results came out. Zynga shares have dropped 88 cents, or 23 percent, to $2.92 since the beginning of the year.