Zynga Q2 Loss Widens; Cuts FY14 Outlook

(RTTNews) - Online social game developer Zynga Inc. (ZNGA) reported a net loss for the second quarter of $62.5 million or $0.07 per share, compared to a net loss of $15.8 million or $0.02 per share for the year-ago quarter.

Excluding items, adjusted net income for the second quarter was $2.8 million or breakeven per share, compared to an adjusted net loss of $6.1 million or $0.01 per share in the prior year quarter.

Revenue for the second quarter fell 34% to $153.23 million from $230.74 million a year ago.

Analysts polled by THomson Reuters expected the company to report breakeven per share on revenue of $191.21 million for the second quarter. Analysts' estimates typically exclude special items.

Looking forward to the third quarter, the company forecasts revenue of $160 million to $170 million, a loss of $0.06 per share and an adjusted loss of $0.01 to $0.00 per share. Analysts currently expect the company to earn $0.01 per share on revenue of $212.35 million for the third quarter.

Zynga lowered its full year 2014 outlook mainly to reflect the delayed launch of new games and features. The company now expects bookings to be in the range of $695 million to $725 million, compared to its previous expectation between $770 million to $810 million. The company now expects full year 2014 adjusted results to range between a loss of $0.01 per share to breakeven per share, compared to its prior guidance of adjusted earnings of $0.01 to $0.03 per share. Analysts currently expect the company to earn $0.02 per share for the full year 2014.