Zynga's Q3 2013 earning results beats Wall Street estimates and sent its stock surging in the market.
On Thursday, October 24, the social game service provider announced its results for the quarter ended September 30.
The maker of famous online games like Farmville and Zynga Poker announced that for Q3 2013 the revenue fell by 36 percent to $203 million. Zynga also confirmed a net loss of just $68,000, or 2 cents a share, for the quarter, which has significantly lower than the net loss of $53 million posted a year ago during the same period. Analysts had predicted a loss of 4 cents a share for Q3 2013.
Zynga also said that its online game revenue for Q3 2013 was $174 million, which is down by 39 percent when compared to Q3 2012. Games like FarmVille 2, Zynga Poker and FarmVille were the biggest revenue generators in the quarter.
"I am pleased with our Q3 performance which exceeded our guidance both in terms of bookings and adjusted EBITDA. We are encouraged to see sightlines to growth and expect to be profitable for the full year on an adjusted EBITDA basis," said Don Mattrick, Chief Executive Officer, Zynga. "Our teams are working hard to compete more aggressively on the web, move to mobile and develop new hits, and I am happy with the early progress we have made. We believe our top franchises, Zynga Poker, FarmVille and Words With Friends can be evergreen in terms of consumer interest and we are focused on growing these franchises in fiscal year 2014. I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profits."
The company also took its opportunity to announce that it had hired Clive Downie as Chief Operating Officer, effective from November 4, 2013. Downie joins the company from DeNA, where he was the CEO of DeNA West. He also served as vice president of marketing at Electronic Arts.
Shares of Zynga rose 13 percent, to $4, following the company's earning call.
