Zynga, the biggest maker of social games, reported third-quarter revenue that surpassed analysts’ estimates as FarmVille 2 became the most popular application on Facebook.
Sales rose 3.2 percent to $316.6 million, and analysts on average predicted revenue of $291.5 million.
Before certain items, the company broke even on a per-share basis, compared with projections for a 1-cent loss. Zynga also announced a partnership with a UK realmoney gaming operator.
Faced with slowing sales and sagging stock, CEO Mark Pincus plans to reorganize and make more money from mobile services. To win back investors, he’ll cut 5 percent of staff, buy back up to $200 million in stock, and offer gambling, said Sterne Agee & Leach analyst Arvind Bhatia.
Shares rose as much as 16 percent to $2.48 in extended trading; the stock closed down 3.2 percent at $2.13. The stock has tumbled 79 percent since the company’s IPO in December.
The game maker posted a third-quarter net loss of $52.7 million, or 7 cents a share.