Zynga shares loss despite record revenue

Zynga Inc. On Wednesday recorded third-quarter revenue of $ 503 million.

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Zynga Inc. after the online gaming company reported record revenue in the third quarter. Shares of the company have reported a 5% drop in after-hours trading, which described its popularity during the epidemic but a growing loss.

The company reported a loss of $ 122 million, or 11 cents per share, with net income of $ 230 million in the year-ago quarter. (Last year, Zynga benefited from the sale of his building in San Francisco.)

Revenue rose 46% from $ 345 million to $ 503 million a year earlier. Bookings rose 59% to $ 628 million, a key indicator of Zynga’s business.

The company offered fourth-quarter revenue guidance of $ 570 million, and raised guidance for the full fiscal year.

“People found Interactive Entertainment very compelling, especially in mobile usage,” Zynga’s chief executive Frank Gibue told Marketwatch in a briefing before the results were announced. “There has been a large amount of searches, especially in mobile.”

Underlining its popularity, Zyng ZNGA,
+ 3.78%
Its best average mobile daily-active users (31 million) and monthly-active users (83 million) were recorded in six years. Gibue cited extensive games of games such as “Words with Friends” and “CSR2”.

Zynga’s results were generally consistent with Wall Street estimates. Analysts polled by FactSet expected a loss of 13 cents on revenue of $ 627 million.

Zynga’s shares are up 61% this year as it is benefitting millions of Americans living at home because of the coronovirus epidemic. Comprehensive S&P 500 Index SPX,
+ 2.20%
There is an improvement of about 7% in 2020.


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