Zynga Posts Upbeat Q1 Results, Plans To Lower 18% Of Workforce

Shares of

surged over 6 percent in after-hours trading after the company reported better-than-expected results for the first quarter and announced its plans to lower around 18 percent of its workforce by the end of the year. The San Francisco, California-based company reported a quarterly net loss of $46.5 million, or $0.05 per share, versus a year-ago loss of $61.2 million, or $0.07 per share. Excluding one-time items, the company posted a loss of $0.01 per share. Its revenue climbed to $183.3 million from $168 million. However, analysts were expecting a loss of $0.02 per share on revenue of $150 million. The average estimate among 47 Estimize users was for a loss of $0.02 per share and revenue of $159.65 million. Online game revenue climbed 12 percent year-over-year to $148 million, while advertising and other revenue slipped 1 percent to $35 million. Adjusted EBITDA declined to $2 million for the first quarter from $14 million. Bookings climbed 4 percent year-over-year to $167 million for the first quarter. Average daily bookings per average DAU (ABPU) climbed 18 percent year-over-year to $0.076 in the first quarter from $0.064. Monthly active users (MAUs) slipped to 100 million in the first quarter, versus 119 million in the year-ago quarter. As of March 31, 2015, the company had around $1.10 billion in cash, cash equivalents and marketable securities, versus $1.15 billion as of December 31, 2014. "In Q1, we delivered results above our guidance generating $167 million in bookings and Adjusted EBITDA of $2 million. Our Q1 results reflect the progress we have made in our transition to mobile which now represents 63% of total bookings -- up 84% year over year," said Mark Pincus, CEO of Zynga. For the second quarter, Zynga expects adjusted loss of $0.02 per share on sales of $175 million to $190 million. Analysts had projected a loss of $0.02 per share on revenue of $156 million. Zynga shares gained 5.75 percent to $2.76 in the after-hours trading session.