three months of the year got
overshadowed by a revenue decline, a
drop in the number of users and a
lower-than-expected second-quarter
forecast.
The online game maker's stock fell
more than 10 percent in extended
trading Wednesday after the first-
quarter results came out.
Zynga, which makes "FarmVille" and
other games, said Wednesday that it
earned $4.1 million, which was
breakeven per share. A year earlier, it
lost $85.4 million, or 12 cents per
share. Adjusted earnings were 1 cent
per share in the latest quarter,
compared with expectations for a loss
of 3 cents.
Revenue fell 18 percent to $263.6
million, from $321 million.
Analysts, on average, had expected
revenue of $264.5 million, according
to FactSet.
As demand for its Facebook games
fades, Zynga has cut jobs, closed
game studios and shut down games to
reduce expenses and focus only on
popular titles. The quarter's expenses
fell 34 percent to $268.5 million, from
$406.6 million.
The number of people who play Zynga
games at least once a month fell 13
percent to 253 million, from 292
million a year earlier. The number of
daily players dropped 21 percent to 52
million, from 65 million.
CEO Mark Pincus said in a statement
that 2013 will "continue to be a
transition year." Zynga, whose games
are played mainly on Facebook's
website, is working on shifting to
mobile games and to its own site off
of Facebook.
(Also see: Zynga relaunches gaming
site, loosens Facebook ties)
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 loss of 1 cent per
share on revenue of $258.1 million.
Shares of San Francisco-based Zynga
fell 34 cents, or 10.1 percent, to
$3.01 in after-hours trading. The
stock had closed up 17 cents, or 5.3
percent, at $3.35 before the results
came out.
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