Zynga Inc. (ZNGA) saw its loss narrow to $9.47 million, or $0.01 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $26.56 million, or $0.03 a share.
Revenue during the quarter grew 4.05 percent to $194.28 million from $186.72 million in the previous year period. Gross margin for the quarter contracted 279 basis points over the previous year period to 66.61 percent. Operating margin for the quarter stood at negative 4.62 percent as compared to a negative 14.40 percent for the previous year period.
Operating loss for the quarter was $8.98 million, compared with an operating loss of $26.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.68 million compared with $16.04 million in the prior year period. At the same time, adjusted EBITDA margin was almost stable in the quarter to 8.58 percent when compared with the last year period.
"We're off to a great start in 2017. We delivered a strong quarter, beating guidance on all key financial measures and posting some of our best results in years." Frank Gibeau, chief executive officer.
For the second-quarter, Zynga forecasts revenue to be $200 million. The Company projects net loss to be $6 million. The company expects diluted loss per share to be $0.01.
Operating cash flow remains negative
Zynga Inc. has spent $4.72 million cash to meet operating activities during the quarter as against cash outgo of $3.30 million in the last year period.
The company has spent $44.74 million cash to meet investing activities during the quarter as against cash inflow of $104.14 million in the last year period. It has incurred capital expenditure of $2.27 million on net basis during the quarter, up 0.62 percent or $0.01 million from year ago period.
The company has spent $83.43 million cash to carry out financing activities during the quarter as against cash outgo of $110.84 million in the last year period.
Cash and cash equivalents stood at $720.44 million as on Mar. 31, 2017, down 1.51 percent or $11.01 million from $731.45 million on Mar. 31, 2016.
Working capital declines
Zynga Inc. has witnessed a decline in the working capital over the last year. It stood at $612.23 million as at Mar. 31, 2017, down 21.43 percent or $166.98 million from $779.21 million on Mar. 31, 2016. Current ratio was at 3.54 as on Mar. 31, 2017, down from 4.93 on Mar. 31, 2016.
Days sales outstanding were almost stable at 40 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 30 days for the quarter from 34 for the same period last year.
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