Here’s What to Expect From Zynga Earnings
The social networking game developer Zynga (NASDAQ:ZNGA) is expected to post higher revenue than a year ago when it was still a private company. Zynga will report first-quarter earning after the market closes on Thursday.
Investors have been pushing Zynga’s stock lower due to concerns regarding its ability to grow quickly. Indisputably, Zynga’s games are very popular, with over 284 million people playing the games on Facebook every month. As players spent more money on popular games such as CityVille and Texas HoldEm Poker, Zynga went public, amicably branched out from Facebook, and is currently offering its games on its own website.
The company has been increasing its large user base by expanding beyond Facebook. Zynga’s popular games can be played on mobile devices. In March, the gaming developer also purchased OMGPop, a company that created the popular mobile game “Draw Something.”
On average, analysts are expecting earnings of 5 cents per share on revenue of $318 million. According to documents submitted to the Securities and Exchange Commission, Zynga earned $17 million on revenue of $243 million in the first three months of 2011.