Zynga's third-quarter revenue beats Street view, shares up 16 percent

Reuters
The corporate logo of Zynga Inc, the social network game development company, is shown at its headquarters in San Francisco, California April 26, 2012. REUTERS/Robert Galbraith/Files
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The corporate logo of Zynga Inc, the social network game development company, is shown at its headquarters in San Francisco, California April 26, 2012. REUTERS/Robert Galbraith/Files

By Malathi Nayak

SAN FRANCISCO (Reuters) - Zynga Inc's(ZNGA.O) shares climbed 16 percent on Thursday after the maker of the online game "FarmVille" reported third-quarter revenue that dropped 68 percent but beat Wall Street's expectations.

For the quarter ended Sept 30, the company's Non-GAAP revenue fell to $152.1 million from $256 million for the same period a year ago, but surpassed analysts' average estimate of $142.7 million, according to Thomson Reuters I/B/E/S.

Zynga shares were up at $4.10 in after-hours trading after closing at $3.535 on the Nasdaq on Thursday.

The company behind once-popular social games such as "Words with Friends" reported a loss of $16.2 million compared to $361,000 for the same period last year.

The game publisher, which once experienced rapid revenue growth from popular PC-based games such as FarmVille on Facebook, has sought to regain its financial footing by transitioning to smartphones and tablet titles, the increasingly preferred format for casual gamers. (Reporting by Malathi Nayak; Editing by Bob Burgdorfer)

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