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Zynga Q3 2012: Revenue Rises, Beats Street; Still Company's Worst Quarter Since Going Public

Zynga Just Had Its Worst Quarter Since Going Public
Reuters
In this June 26, 2012 photo shows Zynga CEO Mark Pincus walks off the stage after an announcement of new games at Zynga headquarters in San Francisco. Not long ago, online games company Zynga looked on pace to unseat much bigger, well-established rivals as it rode the popularity of "FarmVille," the clicking game of virtual cows and real money. But the iPad came along, and more people bought smartphones. People weren't playing Zynga's games on Facebook and computers as much as they used to. Zynga's revenue growth slowed down, and its stock price fell sharply, even as it released dozens of new games. Now, the out-of-luck game maker is turning to a "FarmVille" sequel, released on Wednesday, Sept. 5, 2012, for a revival. (AP Photo/Paul Sakuma)
In this June 26, 2012 photo shows Zynga CEO Mark Pincus walks off the stage after an announcement of new games at Zynga headquarters in San Francisco. Not long ago, online games company Zynga looked on pace to unseat much bigger, well-established rivals as it rode the popularity of "FarmVille," the clicking game of virtual cows and real money. But the iPad came along, and more people bought smartphones. People weren't playing Zynga's games on Facebook and computers as much as they used to. Zynga's revenue growth slowed down, and its stock price fell sharply, even as it released dozens of new games. Now, the out-of-luck game maker is turning to a "FarmVille" sequel, released on Wednesday, Sept. 5, 2012, for a revival. (AP Photo/Paul Sakuma)

SAN FRANCISCO (Reuters) - Zynga Inc's quarterly revenue rose to $317 million, an increase of 3 percent from a year ago, and beat Wall Street expectations of $256 million after the company slashed its 2012 outlook earlier this month.

The game maker, which has been fighting to reverse a dramatic exodus of players, cut its 2012 earnings forecast on October 4 when it warned investors its top line would be affected by poor performance in core money-making Internet games like "CityVille".

The company recorded bookings of $256 million from July through September, the worst quarterly performance since late 2010 when Zynga was still enjoying a meteoric ascent toward its December, 2011 initial public offering.

(Reporting By Gerry Shih; Editing by Bernard Orr)

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