Tomahawk, WI 10/29/2013 (BasicsMedia) – Zynga Inc (NASDAQ:ZNGA) a San Francisco, California based company and a leading provider of social games such as Zynga poker, Words With Friends, Scramble With Friends, Gems With Friends etc., has posted its Q3 ending October 24 results. The social media game company posted not so good results with its earnings per share experiencing a loss of $0.02 with revenues clocking $202.58 million. This is a contrast of an EPS loss of zero for the same period a year ago and revenue collection of $316.64 million. The Company CEO Don Mattick was quick to exhume confidence about the Q3 performances which exceeded bookings and adjusted EBITDA.

 Zynga game bookings experienced a decline to only hit $152million for the third quarter as compared to bookings of $255.61 for the same period the last financial year. The company seems not to be trading in the best patches with revenue on online games declining by 39% on a year-over year basis and sequentially by 14%. Zynga also reported advertising decline of 9% with only good results in this segment being that it was 3% up sequentially. The company on the other hand recorded good results on the deferred revenue segment which stood at $50.47 million as compared to $61.03 million for Q3 F2012. Zynga expects revenue for the fourth quarter to grade in the ranges of $175 and $185 million with an adjusted EPS loss of $0.04 to $0.05. Bookings are expected to decline further at a projected range of $130 million and $140 million.

 The best news out of the announcement for the Q3 results was the net loss of only $68,000 as compared to a net loss of $52.73 million for the third quarter in 2012 financial year. Zynga is currently grappling with less user accounts even though the active user accounts are spending more thus boosting revenue collection. The company may be set for favorable results in the coming days with the average daily bookings per active users experiencing an upsurge of 17%for the year-over-year basis and 4% sequentially. Zynga Non-GAAP earnings per share came in at $0.02 as compared analysts’ estimates of $0.01. Its Non GAAP operation expenditure hit the $186 million mark a decline as compared to analysts’ estimates of $195 million; this is in line with the company workforce being consistently reduced.

Zynga Inc (NASDAQ:ZNGA) needs to do a lot to curb the situation of declining revenues to retain investors’ confidence, the company may have many games but it is only Farmville on Facebook, Zynga Pocker and Words with Friends that are maintaining dominance in the gaming industry. Investors urgently need assurances that the company is stable and inline to maintain sustainable profits and cash flow in the long run. The company had initially forecasted a non GAAP losses a clear indication that the company is slowly expanding and inline to record good results in the coming quarters. The company had previously engaged in layoffs to reduce its wage bill although that has subsequently subsided as the company gains stable margins.

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