Zynga (ZNGA) Tops Q3 EPS by 1c, Offers Q4 Guidance; Announces $200M Buyback; CFO to Depart
Zynga (NASDAQ: ZNGA) reported Q3 EPS of $0.00, $0.01 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $195.7 million versus the consensus estimate of $169.94 million.
Today, the company announced that our Board of Directors authorized a share repurchase program of up to $200 million of our outstanding Class A common stock that remains in effect until October 2017. The timing and amount of any stock repurchases will be determined based on market conditions, share price and other factors. The program does not require us to repurchase any specific number of shares of our Class A common stock, and may be modified, suspended or terminated at any time without notice. The stock repurchase program will be funded from existing cash on hand. In connection with the share repurchase program, the Company may adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934. Share repurchases under these authorizations may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. Repurchases of our Class A common stock in the open market could result in increased volatility in our stock price.
Zynga announced today that its Chief Financial Officer David Lee is resigning as CFO effective immediately and departing the company on December 11, 2015. Zynga has initiated a search for a permanent CFO and until a new CFO is appointed, Michelle Quejado, Zynga’s Chief Accounting Officer, will serve as interim CFO effective immediately. Quejado will be working with Lee, as well as Zynga CEO Mark Pincus, over the next month to ensure a seamless transition of responsibilities.
Fourth Quarter Outlook
Zynga’s outlook for the fourth quarter of 2015 is as follows:
- Revenue is projected to be in the range of $170 million to $185 million
- Net loss is projected to be in the range of ($75) million to ($53) million
- Net loss per share is projected to be in the range of ($0.08) to ($0.06) based on a share count projected to be approximately 933 million shares
- Bookings are projected to be in the range of $165 million to $180 million
- Adjusted EBITDA is projected to be in the range of ($5) million to $5 million
- Non-GAAP net loss per share is projected to be in the range of ($0.01) to ($0.00), based on a share count projected to be approximately 933 million shares
(Streets sees Q4 ESP of $0.0 on revenue of $191.79 million)
For earnings history and earnings-related data on Zynga (ZNGA) click here.