Things are Looking Better for Zynga
Zynga has said that its loss narrowed last quarter even though its revenue was mainly unchanged. The reduction is due to the company reducing expenses by closing offices and unsuccessful games.
As a result of the announcement Zynga’s shares rose almost 7% in after-hours trading.
Last year was tough for Zynga with stock prices dropping 75% and CEO Mark Pincus has described this year as a “pivotal transition year” for Zynga which will keep looking to cut costs and increase revenue sources.
Demand for Zynga’s games has decreased and investors have been worried about the company’s overreliance on Facebook for revenue amid signs that the two companies were growing apart.
As a result Zynga has cut about 5% of its full-time employees and also discontinued 13 older games and closed a number of development studios.
Zynga lost $48.6 million last quarter, significantly less than the $435 million lost in the same period a year earlier. The company’s revenue stayed at around $311 million; however, this was still well above analysts’ estimates of $250 million.
Zynga’s shares climbed 6.6% to $2.92.