ZYNGAR'S EARNINGS FOR THE LAST QUARTER REVEALED
ZYNGA STOCK ROCKETS 15% ON EARNINGS BEAT
SAN FRANCISCO -- Zynga's earnings for last quarter are
out.
Zynga's stock shot
up as much as 15% in after-hours action following its earnings report after the
bell.
The troubled social games company, based in San Francisco, beat
analyst forecasts for third-quarter revenue and losses on net income. This will be earnings for the first quarter under the
company's new CEO Don Mattrick. Mattrick used to be the head of Microsoft's
Xbox business, but left for Zynga when Microsoft restructured its executive
team.
"We are seeing sight lines to growth, and I am proud of the progress that we are making to compete more aggressively on the web, make our move to mobile and develop new hits," CEO Don Mattrick said in a statement.
The third quarter was the first one with new CEO Don
Mattrick, who replaced Mark Pincus in July. The company also launched several
new titles during the quarter, including Fairy Tale Twist, Ninja Kingdom and
New Scramble With Friends. None were huge breakout hits on the order of
FarmVille, which, along with Zynga Poker and Words With Friends, remain its
most popular games.
Despite beating estimates, Zynga reported revenue of $203
million, a 36% decline compared with the same period a year ago. Zynga also
logged deflated bookings of $152 million, down 40% from a year ago.
The company reported a net income loss of $68,000
compared with the $52.7 million loss in net income a year ago. Wall Street was
bracing for a loss of $35.6 million in net income on revenue of $142.7 million
for the quarter, according to the survey of estimates from Thomson Reuters.
Despite the good news, Zynga also reported that mobile
bookings were $46 million compared to $51 million for the comparable quarter in
2012. Daily active users fell from from 60 million in 3Q 2012 to 30 million,
down 49% year-over-year. The 3Q numbers come after several disappointing
quarters. The company's stock price is down more than 60% from its all-time
high (see chart).
Zynga also announced a new COO today, Clive Downie. He
used to work at a Japanese gaming company called DeNA West.
Shares of the online games creator rose 13%, at $4,
following the the news. Anyway, here are the numbers:
- $203 million revenue, down 36% year over year.
- $0.02 loss per share.
- 30 million daily active users, down 57% year over year.
