Should You Buy Zynga Inc (NASDAQ:ZNGA) Now?
On Thursday, Zynga Inc (NASDAQ:ZNGA) reported a 2 cents loss/share on a $152M revenue in the Q3 and on Friday, its shares had risen 5.49% to close at $3.73 at close of markets. The company said that the loss had reduced to $68,000 from $52.7 M in the same quarter from the previous year. Analysts had projected that the company will issues earnings of 4 cents /share on $143M revenue.
Don Mattrick, the company’s Chief Executive Officer, said that he is pleased with the company’s performance in the Q3 which topped their guidance in terms of adjusted EBITDA as well as bookings. He said that they are encouraged to see clear lines to growth and on the basis of an adjusted EBITDA; the full year will be a profitable one.
Zynga Inc (NASDAQ:ZNGA) expects Q4 net loss to be in the $31 million-$21 million range and revenue to be in the $175M- $185M range. Ahead of the earnings report on Thursday, the company had also announced that it has hired Clive Downie, the former CEO of Ngmoco to come on-board as the company’s Chief operating Officer effective 4 November. Mattrick said that the company’s teams are working very hard to compete on a more aggressive level on the internet and also to move into the mobile space and make some additional hits.
He said that he is happy to see the early progress the company has made. He added that he firmly believes that FarmVille, Words with Friends and Zynga Poker can be long-running hits with reference to consumer interest and that they will be concentrating to expanding these particular franchisees in the 2014 financial year. He added that he is very confident about the fact that the company is reinventing itself in a very meaningful manner and that will go a long way in strengthening their core business and also set them back on track in achieving long-term profits and growth.