Zynga falls 10% after whiffing on bookings in Q2

Steven Loeb · August 7, 2014 · Short URL: https://vator.tv/n/3887

The gaming studio has now lowered its 2014 outlook as well

Shares of Zynga have plunged over 10% in after-hours trading Thursday, after the company posted second-quarter results that fell in-line with EPS but missed badly on bookings. 

The company had seen its stock go rise 4.66% to $2.92 a share in regular trading.

Zynga reported bookings of $175 million, falling short analyst expectations of $191 million, on an EPS of zero cents per share, which is what Wall Street had been expecting. Bookings decreased of 7% year to year, but increased 9% quarter to quarter.

The company reported a net loss of $63 million for the quarter, which was uo from a net loss of $16 million for the second quarter of 2013 and up from a net loss of $61 million for the first quarter of 2014.

Monthly unique payers (MUPs) in the second quarter of 2014 were 1.7 million, compared to 1.9 million in the second quarter of 2013. On a consecutive quarter basis, MUPs were up 18% from 1.4 million in the first quarter of 2014.

Daily active users (DAUs) were 29 million, down from 39 million in the second quarter of 2013. They went up 0.4 % quarter to quarter. Web DAUs and Mobile DAUs were million and million in the quarter, respectively.

The company saw impressive growth on mobile, going up 22% quarter to quarter across monthly active users and 12% across daily active users.

Online game revenue was $131 million, down 36% compared to the second quarter of 2013 and down 1% quarter to quarter. 

Advertising and other revenue was $22 million, a decrease of 19% compared to the second quarter of 2013 and a decrease of 38% quarter to quarter. FarmVille 2 and Zynga Pokeraccounted for 32% and 24% of online game revenue, respectively, for the second quarter of 2014 compared to 30% and 24%, respectively, for the first quarter of 2014.

Zynga is projecting booking for Q3 2014 to be in the range of $165 million to $175 million, with a projected net loss of between $57 and $52 million.

For all of 2014, the compant expects bookings in the range of $695 million to $725 million, down from its previous expectation of between $770 million to $810 million

(Image source: smbtraining.com/blog)

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Zynga is the largest social gaming company with 8.5 million daily users and 45 million monthly users.  Zynga’s games are available on Facebook, MySpace, Bebo, Hi5, Friendster, Yahoo! and the iPhone, and include Texas Hold’Em Poker, Mafia Wars, YoVille, Vampires, Street Racing, Scramble and Word Twist.  The company is funded by Kleiner Perkins Caufield & Byers, IVP, Union Square Ventures, Foundry Group, Avalon Ventures, Pilot Group, Reid Hoffman and Peter Thiel.  Zynga is headquartered at the Chip Factory in San Francisco.  For more information, please visit www.zynga.com.