Today, Zynga reported it made $311,165 in revenue, with $261,269 million in bookings for Q4 2012. In terms of revenue, that’s flat year-over-year while bookings were down by 15 percent year-over-year (but up 2 percent from Q3 2012).
Zynga’s earnings report shows it had a net income loss of ($48,561) million; up from Q4 2011's loss of ($435 million) (though the company could really go up from there), which was due to a $510 million stock-based compensation charge tied to its IPO in December 2011. As a result, Zynga’s Q4 2012 was decidedly up from the ($52.7 million) loss in Q3 2012.
Leading up to today, analysts have been split with their predictions for how Zynga’s earnings would go. The ongoing success of FarmVille 2 (which was recently dethroned as the No. 1 game in terms of daily active users but still reigns supreme in with monthly active users) and the CoasterVille’s recent surges in traffic are certainly feathers in the company’s cap, but things like Zynga shutting down a number of underperforming titles and the disappearance of high-profile sequel CityVille 2 from the charts (the performance likely recreating a sense of deja vú for anyone who watched The Ville flounder) were considered warning flags.
Outside factors fueled some analysts’ wary outlooks. EA’s lackluster earnings report last week, which eschewed any mention of social titles in favor of mobile development, has been taken by some as a sign of the continuing decline of social games. Additionally, Facebook revealed on Friday that Zynga’s impact on the social network’s revenue was continuing to shrink.
As has been the case in past quarters, Zynga still has a lot of cash, cash equivalents and marketable securities on hand. That’s down from the $1.92 billion it had in Q4 2012, but the company also doesn’t have any short term or long term debt, according to Bloomberg. Cash flow from operations in Q4 2012 was ($114.3), or $119.4 million excluding the purchase of the company’s headquarters in San Francisco.
Zynga’s partner publishing program has begun picking up steam, but its effects still haven’t really started to make much of an impact on the company’s bottom line. Although some of the early partners have games now playable on Zynga.com’s platform and/or Facebook, Zynga hasn’t turned on the full effect of its cross-promotion power to benefit these titles (many of which seek to tap into the lucrative core gamer market).
Following last quarter’s lowered 2012 guidance, the company was able to meet its projected estimated bookings between $1 to $1.1 billion (this amount was already $500 million less than original projections for the year). The company’s total net revenue for 2012 was $1.28 billion, while bookings managed to reach$1.15 billion.
Over the past quarter, Zynga had three major releases to help FarmVille 2 bring home the bacon: CityVille 2, CoasterVille and Bubble Safari Ocean. It didn’t take long for CityVille 2's traffic to nosedive (it only appeared on our Top 25 Facebook games lists before it completely disappeared from them), but CoasterVille and Bubble Safari Ocean are still sitting fairly high up on the list of top-performing Facebook apps. CoasterVille currently holds the No. 2 spot among facebook apps in the 10 million MAU tier and the No. 11 placing in the 1 million DAU tier. Bubble Safari Ocean also sits in the 10 Million MAU tier with the No. 24 spot and the 1 million DAU tier at No. 61.
We’ll continue to update this story as we further examine the company’s earnings report and listen to the earnings call, set to begin shortly.
Developing.
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