Zynga shares fall after profit beats Wall Street estimates
SAN FRANCISCO Zynga (ZNGA) reported earnings Wednesday that beat analysts' expectations, but posted weaker growth year-over-year in user activity.
The online games maker said that in the January-March period, it generated $263.6 million in revenue with earnings of $4.1 million. Adjusted profit was 1 cent a share.
Analysts expected revenue of $209.8 million with a loss of 4 cents a share.
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"This year will continue to be a transition year as we face the challenging environment on the web and invest in developing the leading franchises and network across web and mobile platforms and offer our 253 million monthly players a connected experience that can follow them from work to school to home and anywhere in between," said Mark Pincus, CEO of Zynga, in a statement Wednesday.
Zynga also reported that the number of its daily active users declined from 65 million in the first quarter of 2012 to 52 million in the same period in 2013.
The company expects a loss of 3 cents to 4 cents a share in the current period.