Zynga CEO Frank Gibeau Weighs In On Q2 Financial Results

Zynga Inc ZNGA recorded a record first half of the year, but the company started to see slight user decline in June and July, Zynga CEO Frank Gibeau said Friday on CNBC's "TechCheck."

What Happened: Zynga reported second-quarter earnings of 11 cents per share, which beat the estimate of 9 cents per share. The company reported quarterly revenue of $628 million, which came in below the estimate of $713.01 million.

Zynga trimmed its third-quarter guidance on slowing gameplay.

Related Link: Why Zynga's Stock Is Getting Hammered After Hours Today

Why It Matters: The stock fell nearly 20% following Zynga's financial results. 

As a result of the reopening, Zynga began seeing a slight decline in user gameplay, Gibeau told CNBC. 

Zynga adjusted its full-year guidance by about 3%, but the CEO said that the company is still positioned to finish 2021 with record revenues.

"We are very confident that these are short-term dynamics," he noted.

"We're adjusting to these short-term headwinds in the summertime, but as we look forward, Zynga's growth potential is very strong and we are very focused on making great games for our players," Gibeau said.

In terms of M&A, the company aims to consolidate its acquisitions and focus on organic growth moving forward, the Zynga CEO told CNBC. 

Analyst Assessment: Keybanc maintained Zynga with an Overweight rating and lowered the price target from $13 to $11.

Barclays analyst Mario Lu maintained Zynga with an Overweight rating and lowered the price target from $14 to $12.

ZYNGA Price Action: Zynga has traded as high as $12.32 and as low as $7.77 over a 52-week period.

At last check Friday, the stock was down 18.47% at $7.97.

Photo by SAIYED IRFAN A from Pixabay.