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Zynga’s revenues were flat year-over-year amid a tough quarter that saw layoffs and a continuing series of executive and mid-level departures.
The company’s revenues came in at $311 million and the net loss was $48.6 million for the quarter. Analysts had estimated that Zynga’s fourth quarter revenue would come in at $212.1 million with a loss of 3 cents per share. Bookings were down 15 percent year-over-year, to $261 million.
“The biggest highlight of the quarter was seeing our team deliver a successful sequel in FarmVille2, a next generation social game that offers cutting edge 3-D experiences loved by millions of FarmVille fans,” said founder and CEO Mark Pincus in the earnings press release.
A year ago, Zynga’s fourth quarter revenue came in at $311.2 million. But over the past year, Zynga’s network on Facebook has bled users while other casual game developers like King.com have risen in the rankings. At the same time, while the company has transitioned to mobile platforms and probably has the largest network of players on Android and iOS, it hasn’t been fast enough to compensate for a tougher environment on the Facebook platform.
Zynga engaged in significant cost-cutting measures this quarter to bring the company back to the brink of profitability. They closed more than 10 titles, had layoffs in Austin office, and closed the Boston and Tokyo offices. They’ve also seen more senior-level departures in the past few months including Treasurer Mike Gupta and chief game designer Brian Reynolds.
But perhaps the very worst of the news has already been priced in. At a market capitalization of $2.1 billion, Zynga has an enterprise value of roughly $450 million over the $1.65 billion they have in cash, short-term, and long-term investments.
Despite the negative flow of news, shares rallied as much as 6 percent this morning on hopes of a surprise from a strong Farmville 2 performance. Zynga recently said the game was seeing 8 million players per day
Zynga was founded in July 2007 by Mark Pincus and is named for his late American Bulldog, Zinga. Loyal and spirited, Zinga’s name is a nod to a legendary African warrior queen. The early supporting founding team included Eric Schiermeyer, Michael Luxton, Justin Waldron, Kyle Stewart, Scott Dale, John Doerr, Steve Schoettler, Kevin Hagan, and Andrew Trader. Zynga’s mission is connecting the world through games. Everyday millions of people interact with their friends and express their unique personalities through our...
Zynga was founded in July 2007 by Mark Pincus and is named for his late American Bulldog, Zinga. Loyal and spirited, Zinga’s name is a nod to a legendary African warrior queen. The early supporting founding team included Eric Schiermeyer, Michael Luxton, Justin Waldron, Kyle Stewart, Scott Dale, John Doerr, Steve Schoettler, Kevin Hagan, and Andrew Trader. Zynga’s mission is connecting the world through games. Everyday millions of people interact with their friends and express their unique personalities through our...
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