Zynga Q4 Loss Narrows - Quick Facts

(RTTNews) - Zynga, Inc. (ZNGA) Thursday said fourth-quarter loss narrowed to $25.24 million or $0.03 per share from $48.56 million or $0.06 per share in the same period last year.

Adjusted loss for the quarter was $20.83 million or $0.03 per share. On average, 24 analysts polled by Thomson Reuters expected the company to report a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues decreased to $176.36 million from $311.17 million last year. Analysts expected revenues of $141.07 million.

Looking ahead to the first quarter, the company expects a loss in the order of $0.07 to $0.06 per share, with adjusted loss of about $0.01 per share. Revenues are expected to range between $155 million and $165 million. Analysts currently expect the company to report a loss of $0.02 per share on revenues of $145.64 million.

For the fiscal year 2014, the company currently projects adjusted earnings in the order of $0.01 to $0.03 per share. Analysts currently expect a full-year loss of $0.04 per share for 2014.

Zynga has announced agreement to acquire privately-held NaturalMotion, a leading mobile game and technology developer for approximately $527 million. NaturalMotion's shareholders will also receive approximately 39.8 million shares of Zynga stock, based on its closing price on January 29.

With its cutting edge technology and tools, including Euphoria, Natural Motion's addition expands Zynga's creative pipeline into two new consumer categories - Racing and People simulation, while accelarating mobile growth.

Additionally, Zynga said it will reduce approximately 314 employees, representing 15 percent of its current workforce, as part of its announced a cost reduction plan to generate pre-tax savings in the range of $33 million to $35 million in 2014.

The plan excludes an estimated $15 million to $17 million pre-tax restructuring charge in Q1. The company is also planning to reduce its spend on datacenter infrastructure.