After posting the worst IPO this year, shares of Zynga Inc(NASDAQ:ZNGA) are showing heavy buying in afterhours session on Wednesday after the struggling gaming company posted better than estimated third quarter earnings.
The company posted net loss of $52.7 million, or 7 cents a share. However, on an adjusted basis, the company broke even, posting 0 cents a share, matching analysts’ target. Revenue during the quarter rose 3% year over year to $316.6 million well above analysts’ target of $256 million.
Separately, investors are also cheering the company’s surprise announcement of a $200 million buyback program.
“While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming,” CEO Mark Pincus wrote in the release.
Shares of ZNGA soared 16% in after hours session, but still down 75% from its $10 IPO price in December 2011.