Zynga Inc (NASDAQ:ZNGA) will hold a conference call on October 24th, 2013 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), to discuss its third quarter results following the release of its financial results after the close of market.
Analyst expects loss, no surprise
Consensus estimates are that Zynga will incur a loss of $0.05 per share on sales of $141.7 million from a break even loss and revenues of $316.6 million in the corresponding quarter of last year.
Zynga Inc (NASDAQ:ZNGA) is struggling due to increased segment pressure and is confessing to have been defeated. In the announcement of the earnings call, Zynga promoted itself as a leading game developer compared to its April 2012 release where the game maker titled itself as the leading provider of social gaming services. This may not be a new item, but it is the first time it’s been noticed, says StreetInsider.
Second quarter results
For the second quarter of 2013, revenues plummeted 31 percent year over year to $231 million for Zynga Inc (NASDAQ:ZNGA), which was undergoing a transition phase as CEO Mark Pincus was replaced by Don Mattrick. Loss for the gaming firm came in at $16 million compared to a loss of $22.8 million in the corresponding quarter of last year.
Companies like King, popularly known for its Candy Crush Saga title and Kabam are making it tough for Zynga to survive in the fiercely competitive social game market.
Zynga in midst of turnaround
Zynga Inc (NASDAQ:ZNGA) is in the midst of a turnaround, however, its plans may have negative momentum on share price for the near term as Zynga is expecting volatility to continue for two to four quarters ahead.
In June, Zynga laid off 18 percent of its staff and closed offices in New York, Dallas and LA. The company went a step ahead by shuttering also closed its Omgpop studio, which is known for its Draw Something title.
Zynga Inc (NASDAQ:ZNGA) is returning to basics and is planning to refocus on free-to-play social games. It withdrew its license for real money gaming in the United States. It is also giving more thrust to developing games for mobile and bringing in new and interesting games like Farmville. Additionally, Don Mattrick, known to be the man behind games like FIFA, Need for Speed and The Sims, has a lot of expertise that will help Zynga achieve its long term target.
Shares of Zynga ended 4.3 percent lower Tuesday.