Zynga Reports Loss Despite Rising Revenue

SAN FRANCISCO ( TheStreet) -- Zynga ( ZNGA) enjoyed a 32% revenue hike in its first-quarter results, released after market close on Thursday, although the company registered a loss thanks to rising costs.

The social gaming specialist brought in revenue of $321 million, up from $243 million in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for sales of $317.3 million.
Zynga reported first-quarter results on Thursday.

On a GAAP basis, however, Zynga reported a loss of $85.4 million, or 12 cents a share, down from net income of $16.8 million in the same period last year. In a statement released after market close, Zynga said that $133.9 million of stock-based expense was included in the net loss for the March quarter, compared to $14.5 million in the prior year's quarter.

Excluding items, Zynga earned 6 cents a share, compared to 11 cents a share in the year-ago quarter. Wall Street expected earnings of 5 cents a share.

"We're pleased with the progress that Zynga has made in the first quarter growing our audience reach 25% year-over-year and nearly 20% quarter-over-quarter," said Mark Pincus, the Zynga CEO, in the statement.

Investors, however, were unimpressed with Zynga's second report as a public company, pushing the company's stock down 4.5% to $9 in extended trading.

For the full year, Zynga expects earnings of 23 to 29 cents a share, compared to the analysts' forecast for a profit of 27 cents a share. The San Francisco-based firm also predicts full-year bookings between $1.425 billion and $1.5 billion.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

If you liked this article you might like

IPOs That Should Be on Your Radar

Now You're Hearing Apple Roar: Market Recon

Apple Rally Could Boost Dow to 22,000 - 5 Things You Must Know Before the Market Opens

Tesla and Apple Better Deliver Big-Time or Look Out Below -- Week Ahead

Midday Report: SiriusXM Makes Pandora Investment; U.S. Stocks at New Records