Zynga Inc (NASDAQ:ZNGA) released its earnings for the third quarter of 2013 this afternoon after the market closed on Wall Street. The company showed a loss per share of 2 cents for the three months through September. Revenue came in at $203 million for the period. The company’s stock trended down on today’s market and finished at $3.54 per share.
Analysts following Zynga Inc (NASDAQ:ZNGA) were looking for a loss of 4 cents per share. Revenue for the same period was expected to come in at $188 million. In the same three months of 2012, the reported flat earnings on revenue totaled $317 million. Zynga revenue have been declining for several quarters in a row, and its entire business is in jeopardy.
Voss Capital is betting on a housing market boom
The Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More
Zynga Inc (NASDAQ:ZNGA) is expected to lose 7 cents per share for the full year. The company lost 5 cents per share in the full year 2012. Zynga’s core business, social gaming, has become more competitive and less profitable in recent years. The company does not seem able to figure out how to effectively change that business model.
Zynga attempted to become a gambling company in the first half of 2013. That didn’t work out and the company officially abandoned that scheme back in July. The firm’s goal is now to go mobile. The switch to mobile gaming contributed to the fall in the company’s revenue over the last year or so. If the company can manage to get into that market the firm will certainly increase its chances of survival.
Despite the problem with Zynga Inc (NASDAQ:ZNGA) earnings, shares in the firm have performed incredibly well so far in 2013. The company’s stock has increase by close to 50 percent since the start of the year, and had actually increased by more than that before the market opened this morning.
Zynga Inc (NASDAQ:ZNGA) will host a conference call to discuss this earnings announcement at 5 p.m. EST. The company’s shareholders, and the analysts following the firm, will be looking or clarifications on the company’s strategy going forward and some guidance about the company’s fourth quarter.