Zynga plummets 9% in after-hours trading

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Social game developer Zynga tumbled 9 percent in after-hours trading following the second quarter 2016 earnings announcement after the bell today. The company reported a net loss of $4.4 million, while still beating analysts’ expectations in terms of revenue.

For the second quarter ended June 30, the San Francisco-based maker of FarmVille and Words with Friends posted revenue of $181.7 million and non-GAAP net earnings came in at $0.00.

Wall Street expected EPS of $0.00 on revenue of $169.4 million, according to Thomson Reuters. The stock hit 9 percent down in late afternoon, after having closed less than 1 percent up at $2.97.

“We are tightening our operating model and improving our cost management as we do more with less, particularly in marketing,” said Frank Gibeau, CEO of Zynga, in a statement.

In a conference call with analysts, Gibeau commented on the viral success of Pokémon Go: “What was really inspiring to us is how social Pokémon Go is and how much it enables group play, communications and conversations.”

Gibeau added that Zynga games such as Words with Friends and Zynga Poker delivered strong results during the last quarter. At the end of the call, he refused to share the margins of the advertising revenue stream.

In Nasdaq after-hours trading, the stock was still down 28 cents, or 9.43 percent, at $2.69. On February 27, 2012, two months after the IPO, the company hit an all-time high closing price at $14.69.

Featured Image: Mike Mozart/Flickr UNDER A CC BY 2.0 LICENSE

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