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Zynga Shares Jump on Stronger-Than-Expected Q3 Results

Zynga shares are higher as the videogame publisher reported estimate-beating results and guidance.
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Zynga  (ZNGA) - Get Zynga Inc. Class A Report shares rose Tuesday after the videogame publisher reported stronger-than-expected results for the third quarter and buoyant guidance for this quarter.

It posted a loss of $41.7 million, or 4 cents a share, in the third quarter, narrowing from a loss of $122.2 million, or 11 cents a share, a year earlier. 

The latest quarter included a $67 million charge for vacating its lease in San Francisco.

The FactSet analyst consensus called for a 9-cent loss in the latest quarter.

Revenue soared 40% to $704.7 million from $503.3 million a year earlier. And bookings climbed 6% to $667.7 million from $628 million.

Analysts expected revenue of $663.6 million and bookings of $667.2 million.

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Zynga on Tuesday closed at $7.65, up 9.4%. It has slumped 22% year to date, compared with a 25% gain for the S&P 500. The stock in mid-February touched a 52-week high $12.32.

As for guidance, the company projected fourth-quarter revenue of about $675 million and bookings of $715 million. 

The FactSet consensus called for revenue of $663.6 million and bookings of $716.5 million.

For the full year, Zynga anticipates revenue of $2.78 billion and bookings of $2.81 billion, compared with analysts’ estimates of $2.75 billion and $2.81 billion respectively.

The quarter was driven primarily "by another standout quarter from Rollic’s hyper-casual portfolio,” Zynga Chief Executive Frank Gibeau said in a statement.

“We are raising our full year 2021 guidance and are on track to finish the year with Zynga’s best-ever annual topline performance and the largest mobile audience in the company’s history.”