More on Zynga (ZNGA) Q2 earnings: Q3 EPS guidance of -$0.09 to -$0.05 (consensus is -$0.02) on...

More on Zynga (ZNGA) Q2 earnings: Q3 EPS guidance of -$0.09 to -$0.05 (consensus is -$0.02) on bookings of $125M-$150M. From Q2: Daily active users of 39M is off 45% Y/Y, off 24% Q/Q. Average daily bookings per average DAU of $0.053, up 14% Y/Y. Monthly unique payers of 1.9M off 53% Y/Y. "Biggest opportunity is to focus on free to play social games ... Zynga is making the focused choice not to pursue a license for real money gaming in the U.S." Shares -6.9% AH. CC at 5 ET. (PR)

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Comments (14)
  • LYogi
    , contributor
    Comments (3201) | Send Message
    I wonder why they aborted online gambling in the US.
    25 Jul 2013, 04:23 PM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
    I would think competition. They probably figured there's no way to compete in the US with all of the others. I wonder if this is only the US or across the whole world?


    25 Jul 2013, 05:30 PM Reply Like
  • LYogi
    , contributor
    Comments (3201) | Send Message
    wow now down 50 cents, 15%
    25 Jul 2013, 04:24 PM Reply Like
  • tayl108
    , contributor
    Comments (58) | Send Message
    Only reason i bought was for online gambling. Time to dump it.
    25 Jul 2013, 04:26 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1244) | Send Message
    Bye, Zygna.
    25 Jul 2013, 04:27 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (8868) | Send Message
    25 Jul 2013, 04:28 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1601) | Send Message
    The worst news is that they project Q3 bookings in the range of 125-150 million. That is a huge sequential drop from Q2's 188 million (the latter being already a big drop yoy).


    No doubt they are hemorrhaging users and hemorrhaging revenue. They may do drastic cost cuts, but that won't save them. It is almost impossible for any company to cost cut its way to profitability with plummeting revenues, but it is particularly impossible for a growth tech company.


    This should fall down to tangible book value soon enough.
    25 Jul 2013, 04:28 PM Reply Like
  • LYogi
    , contributor
    Comments (3201) | Send Message
    maybe priming themselves to be bought out by $MSFT?
    25 Jul 2013, 04:31 PM Reply Like
  • Mattster
    , contributor
    Comments (165) | Send Message
    Suspect timing for this announcement at earnings, people who held for an online gambling play were deceived and dumped on.
    25 Jul 2013, 04:45 PM Reply Like
  • threemind
    , contributor
    Comment (1) | Send Message
    If you do not pursue a license in US is perhaps why will partner with someone who has already been there!
    25 Jul 2013, 05:10 PM Reply Like
  • Glenn Abrett
    , contributor
    Comments (2067) | Send Message
    bye znga -- am out as of tomorrow -- don't plan on getting back in or even paying attention -- real money gambling was their ticket -- without that they are a flailing game company without the game development talent to compete with the big boys
    25 Jul 2013, 05:37 PM Reply Like
  • SoCalNative+(RIP)
    , contributor
    Comments (651) | Send Message
    Wow. They suck.
    25 Jul 2013, 07:17 PM Reply Like
  • Sammy Lee
    , contributor
    Comments (339) | Send Message
    The optionality is gone. There's nothing left, but cash burn.
    25 Jul 2013, 08:05 PM Reply Like
  • financeminister
    , contributor
    Comments (1228) | Send Message
    Good thing I jumped this ship after the first signs of trouble.
    26 Jul 2013, 12:34 AM Reply Like
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