Zynga Posts Lower Quarterly Revenue; Shares Fall
SAN FRANCISCO (CBS/AP) — Zynga reported a small profit in the first three months of the year, as the online game company reduced expenses. But a revenue decline and a lower-than-expected second-quarter forecast are sending its stock tumbling.
Zynga Inc. said Wednesday that it earned $4.1 million, or a breakeven per share. A year earlier, it lost $85.4 million, or 12 cents per share. Adjusted earnings were 1 cent per share, compared with expectations for a loss of 3 cents.
Revenue fell 18 percent to $263.6 million.
FactSet says analyst had expected revenue of $264.5 million.
For the current quarter, Zynga is forecasting an adjusted loss of 3 cents to 4 cents per share on revenue of $225 million to $235 million. Analysts were expecting a smaller loss and higher revenue.
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