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Zynga posts small Q3 loss, but revenue still on steep decline

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Social and mobile game maker Zynga posted its quarterly earnings today, announcing a $68,000 net loss for the third quarter on revenue of nearly $203 million. During the same quarter last year, Zynga posted a $52.7 million net loss on $316 million in revenue.

Zynga's Q3 showing was "above the high end of our guidance range" for the quarter, CEO Don Mattrick said in an investor call.

"We are encouraged to see sightlines to growth and expect to be profitable for the full year on an adjusted EBITDA basis," Mattrick said. "Our teams are working hard to compete more aggressively on the web, move to mobile and develop new hits, and I am happy with the early progress we have made. We believe our top franchises, Zynga Poker, FarmVille and Words With Friends can be evergreen in terms of consumer interest and we are focused on growing these franchises in fiscal year 2014. I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profits."

Revenue for the third quarter was down 12 percent from the quarter prior, the company said, and Zynga saw big declines in daily active users, monthly active users and monthly unique users from the same quarter last year. In some cases, users dropped by more than half on a year-over-year basis.

Zynga's projections for its next quarter include a net loss in the range of $31 million to $21 million on revenue ranging from $175 million to $185 million.

The company announced its new chief operating officer today, Clive Downie, who previously served as CEO of DeNA West and vice president of marketing at Electronic Arts.