Zynga Shares Tumble On Weak Revenue Outlook

By Markets MarketWatch Pulse

Shares of Zynga Inc. sank in Thursday's extended session after the video game developer released a weak revenue outlook for the third quarter. Zynga reported its second-quarter loss narrowed to $4.5 million, or a penny a share, from a loss of $26.9 million, or 3 cents a share, a year earlier. Excluding certain items, the developer of "FarmVille" and "Words With Friends" would have broken even. Revenue fell to $181.7 million versus $199.9 million while average daily active users dropped 15% year-over-year to 18 million. Analysts surveyed by FactSet had forecast the company to break even on a per share basis on revenue of $171 million. The company expects third-quarter revenue of $170 million to $180 million and adjusted earnings of a penny a share. Analysts are projecting earnings per share of 1 cent a share on revenue of $188 million. Zynga shares slumped 6% after hours.

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