Zynga reports higher-than-expected bookings, to cut jobs
(Reuters) - "Farmville" creator Zynga Inc reported higher-than-expected quarterly bookings as titles such as "Words With Friends" attracted more gamers, and the company said it would cut 364 jobs as it tries to turn around its business.
San Francisco-based Zynga said it would cut studio jobs, including contractors, and implement other cuts to save $100 million on an annualised pre-tax basis.
The company's shares rose 10.7 percent to $2.89 in extended trading on Wednesday.
The announcement of the latest job cuts, which affect about 18 percent of the company's workforce, follows last month's return of founder Mark Pincus as chief executive.
Zynga, which had 1,974 full-time employees as of Dec. 31, said in January last year that it would shed 15 percent of its workforce.
Zynga has been struggling to follow up on the huge success of "Farmville" and has been focussing more on games for mobile devices to win back gamers.
The company said on Wednesday that would launch six to eight mobile games in 2015.
Zynga reported bookings of $167.4 million for the first quarter ended March 31. Analysts on average had expected $149.2 million, according to research firm Factset StreetAccount.
Zynga records the sale of virtual goods and downloads as deferred revenue, which is recognised as these goods are consumed. Bookings equal revenue recognised in a period plus the change in deferred revenue.
Zynga's net loss narrowed to $46.5 million, or 5 cents per share, from $61.2 million, or 7 cents per share, a year earlier.
Total revenue rose to $183.3 million from $168.0 million.
On an adjusted basis, the company reported a loss of 1 cent per share. Analysts had expected a loss of 2 cents per share, according to Thomson Reuters I/B/E/S.
Up to Wednesday's close, Zynga's stock had risen about 11 percent in the past six months.
(Reporting by Devika Krishna Kumar and Subrat Patnaik in Bengaluru; Editing by Ted Kerr)
