Zynga Reports $311.2 Million In Revenues For Q4 2012
Zynga has reported their Q4 results and revenues were better-than-expected. The company reported an EPS of $0.01 on revenues of $311.2 million for the quarter ending December. This is better than Wall Street’s estimates of an EPS of -$0.03 on revenues of $212 million. Zynga reported bookings of $261.3 million for the quarter and beat estimates of $222.4 million.
After reporting the results for Q4 and a better-than-expected guidance for Q1 2013, the company’s stock price went up as high as 7% in after hours trading. Unfortunately Zynga’s bookings declined 15% from the same quarter in 2011. The company’s monthly and daily active users were also down quarter-over-quarter.
The company reported a net loss of over $48.6 million, but this is a massive improvement form the $435 million net loss that the company reported in the same quarter over a year ago. Most of that loss in 2011 was based on employee stock compensation costs that resulted in Zynga’s IPO. For 2012 as a whole, Zynga reported a net loss of over $200 million.
The company is shutting down 3 games including CityVille 2, Party Friends, and The Friend Game. CityVille 2’s traffic has been plummeting and the company’s blames a lack of lead time to properly test it. Zynga recently announced plans to save costs by shutting down 11 titles. The company will be releasing fewer games and they will space their releases further apart.