Zynga reports 1Q net loss, higher revenue

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By BARBARA ORTUTAY

updated 4/26/2012 4:38:46 PM ET

NEW YORK — Online games company Zynga reported a net loss in the first quarter because of stock compensation expenses, but adjusted earnings were better than what Wall Street expected.

Zynga Inc. said Thursday that net loss was $85.4 million, or 12 cents per share, in the January-March period. It had earnings of $16.8 million, or about break even, a year earlier when it was still a private company.
Adjusted earnings of 6 cents per share beat Wall Street's expectations. This figure excludes one-time items such as $133.9 million in stock-compensation expenses.
Revenue grew 32 percent to $321 million from $243 million.
Analysts, on average, were expecting earnings of 5 cents per share on revenue of $318 million, according to a poll by FactSet.
Zynga's games include "CityVille" and "Words With Friends." The company recently bought OMGPop, the maker of the mobile game "Draw Something." This helped boost the number of monthly active users to 292 million, from 236 million a year earlier.
For all of 2012, Zynga expects adjusted earnings of 23 cents to 29 cents per share. Analysts were forecasting 27 cents.
The San Francisco-based company's stock climbed 8 cents to $9.50 in after-hours trading. The stock had closed up 31 cents at $9.42. Zynga's stock priced at $10 when the company went public in December.
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