Zynga Inc shares up 5.7 percent after the bell following Q3 earnings report $ZNGA

On yesterday's conference call, Facebook ($FB) reported a 20 percent decrease in revenue from Zynga. Will be interesting to hear how Zynga addresses this. Pincus is now speaking.

Zynga CEO Pincus: "Social gaming has grown a large scale audience on Facebook," 235 million playing games.

Zynga CEO Pincus: "We didn't create enough heat for our players by innovating on content and features."

Zynga CEO Pincus: "We remain confident that we will drive growth and profitability in our core web business."

Zynga CEO Pincus: 61 million monthly active players on Farmville 2.

Zynga CEO Pincus: 311 million monthly active users.

Zynga CEO Pincus: We announced several studio closures, reduction in full-time workforce of 5 percent; thirteen underperforming games will be sunsetted.

Zynga CEO Pincus: "The real opportunity in mobile is still ahead of us."

Zynga CEO Pincus: "The world is adopting free-to-play and social gaming. Zynga pioneered social gaming for the mass market."

Zynga's CFO David Wehner is now on the call, talking monthly mobile users and monthly active users. They're going by too quickly for me to keep up.

Zynga CFO Wehner: "Gems with Friends" is the best monetizing game in the "...with Friends" series to date.

Zynga CFO Wehner: Revenue $317 million in Q3. Ad revenue was $31 million. Revenue in the U.S. was $178 million. International rev was $139 million.

Zynga CFO Wehner: "We are not satisfied with our recent performance."

The conference call is now open to questions...

Zynga CFO Wehner: "We built the best social games...we built a network around that audience...so that we could consistently take any great game to an audience of 6-8 million DAUs."

(Note: DAU = Daily Active Users)

Zynga CFO Wehner: "There is no company or network that, today, has the kind of network effect to drive large scale distribution, and we believe we're in the best position to do that."

Zynga CEO Pincus: "I believe that what Facebook referred to yesterday was -- they said that our share of ecosystem revenues in the last year was down 20 percent...either way, we're focused on building great games that continue to drive deeper engagement and consumer value, and we're doing it in some of our core areas like invest and express, and I think we've had a major breakthrough with Farmville 2. I think that we showed we could bring a terrific 3-D game to a mass market in a browser for free with a terrific design around it, and we're seeing great engagement and results. We have a similar 3-D game coming out really soon."

Zynga CFO Wehner: "Facebook makes changes to its algorithm all the time -- there's no set, firm way in which Facebook operates, there's changes all the time. We navigate those changes."

Zynga CEO Pincus: Biggest thing to look for Zynga doing next year is "continue to drive this network conversion on mobile."

Zynga CFO Wehner: "We've got some positive developments...but Farm(ville) 2 has been a real success in re-energizing the 'Farm' category."

Zynga's revenue rises, beats Street; shares climb

Zynga Inc raised the lower end of its 2012 earnings outlook on Wednesday as the company reported a slight uptick in revenue that beat Wall Street's rock-bottom expectations.

Shares of Zynga jumped 16 percent to $2.47 in after-hours trade. The game publisher also announced a $200 million share buyback program and said it has begun a cost reduction plan expected to generate $15 million to $20 million in pretax savings.

The news was a bright spot after Zynga slashed its 2012 outlook earlier this month.

Quarterly revenue rose to $317 million, an increase of 3 percent from a year ago. The company revised its full-year adjusted earnings to between $152 million and $162 million, up from $147 million and $162 million.

Read more... [Reporting by Gerry Shih]

Zynga CEO Pincus: Hard to measure carryover of people going from Facebook to mobile for Zynga's games.

Zynga CEO Pincus: "In terms of our overall market share on Facebook, we believe that our position on Facebook has been largely driven by our own execution, and as we've said we haven't been happy with our execution across the board...we haven't been consistently executing as we had hoped to for this whole year. We're encouraged in some of our core areas...we've done a great job maintaining our market position, even growing our market position...we've gained some good share on Android on mobile."

Zynga CFO Wehner: Seen a lot of opportunities "come our way, but we've been selective" on mergers and acquisitions.

Zynga CFO Wehner: See growth opportunity "on the web and on mobile."

The conference call has now passed the one hour mark.

At the 1hr 03min mark, the conference call comes to an end, and we're once again greeted with the Call On Hold Symphonic Orchestra*.

(* - note: not actual name of orchestra)