Zynga Posts Upbeat Q3 Results, Announces CFO Resignation

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Zynga Inc
ZNGA
reported upbeat results for the third quarter and announced the resignation of its Chief Financial Officer David Lee. The San Francisco, California-based company posted a quarterly profit of $3.05 million, or breakeven per share, versus a year-ago loss of $57.1 million, or $0.06 per share. Its revenue climbed 10.8 percent to $195.7 million. However, analysts were expecting a loss of $0.01 per share on revenue of $169.94 million. The average estimate among 97 Estimize users was for earnings of $0.00 per share and revenue of $178.11 million. Its monthly active users declined 27 percent to around 75 million. Bookings came in mostly flat at $176 million for the quarter. Mobile bookings climbed 26 percent year-over-year to $121 million. As of September 30, 2015, the company had $1.07 billion in cash, cash equivalents and marketable securities, versus $1.10 billion as of June 30, 2015. The company also announced a $200 million share repurchase program. "Based on the opportunity we see for Dawn of Titans and CSR2 we have made the deliberate decision to invest in future development of these games and move their launches into 2016. As we get closer to our players behavior over time, we believe there are a few key areas that we can optimize to increase long-term player retention. For Dawn of Titans specifically, given how strong the early monetization is for the game, we believe that a move of 200 basis points in day 30 retention has the potential to make the game a breakout hit. We are able to make these hard decisions, because of the cost reduction program that we put in place earlier this year," said Mark Pincus, CEO and Founder. For the fourth quarter, the company expects bookings of $165 million to $180 million, versus analysts' estimates of $193.9 million. Zynga projects Q4 adjusted loss of $0.01 per share to break even earnings per share, and revenue of $170 million to $185 million. Analysts expected earnings of $0.00 per share per share on revenue of $191.79 million. Zynga shares rose 0.41 percent to $2.46 in the after-hours trading session.
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Posted In: EarningsNewsGuidanceManagementprofit
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