Has Zynga Turned Over a New Leaf?

While social-gaming provider Zynga (NASDAQ:ZNGA) posed a net loss for the third quarter, the company’s stock rose after the company announced a $200 million share buy-back program and a planned foray into real-money gambling in the United Kingdom.

The San Francisco-based creator of “FarmVille” and “Words with Friends” has seen its stock fall 79 percent from its December initial public offering price of $10 per share and reported losses in all four quarters. Concerns over its user numbers and reliance on Facebook (NASDAQ:FB) have surrounded the company all year. However, despite another quarter of mixed earnings, shares in the company  were trading up by more than 17 percent in pre-market trading Wednesday.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

For the three month period ended in September, Zynga’ revenue beat analysts expectations, while its earnings fell short. The company reported a GAAP loss of 7 cents per share on a revenue of $317 million. Third quarter revenue rose 3 percent from the year-ago-quarter and earnings per share fell by 4 cents. Analysts had expected Zynga to post earnings per share of 1 cent and revenue of $256 million.

This quarter’s net loss was due in part to a decrease in online game revenue. Zynga reported game revenue of $285.6 million in the third quarter, down 2.3 million from the year-ago-quarter. Furthermore, revenue bookings, or the actual value of virtual goods sold in Zynga’s games, fell 11% to $255.6 million and total expenses increased by 50 percent.

Znyga lowered its full-year forecast at the beginning of October after its new game,“Ville,” did not perform as well as expected. The company dropped expectations for bookings from $1.085 billion to $1.100 billion compared to its previous projection of $1.150 billion to $1.225.

Don’t Miss: Did Zynga Use Apple Event to Fire Employees Under the Radar?