Seeking Alpha

Zynga's active users still dropping quickly, job cuts keep losses in check

  • Zynga's (ZNGA) daily active users fell 23% Q/Q and 49% Y/Y to 30M; Web DAUs fell by 7M Q/Q to 16M, and mobile MAUs by 2M to 14M. Monthly active users -29% Q/Q and -57% Y/Y to 133M. Web MAUs amounted to 82M, and mobile MAUs 51M.
  • Monthly unique payers -17% Q/Q and -46% Y/Y to just 1.6M. However, average daily bookings per DAU rose 4% Q/Q and 17% Y/Y to $0.047.
  • FarmVille 2, Zynga Poker, and FarmVille respectively made up 22%, 19%, and 18% of Q3 online game revenue vs. 15%, 20%, and 16% in Q2. Zynga claims it had 3 of the 10 most popular Facebook games in terms of DAUs as of Sep. 30.
  • Thanks to job cuts, R&D spend -48% Y/Y to $81M. Likewise, sales/marketing spend -42% to $21.2M. G&A was relatively steady, falling only 4% to $34M.
  • New COO Clive Downie comes over from leading Japanese mobile game platform provider DeNA, where he headed the company's American/European ops. He joins two months after Zynga's last COO, David Ko, left as part of a major restructuring carried out by new CEO Don Mattrick.
  • ZNGA +10.9% AH. Q3 results, PR.
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Comments (3)
  • haleiwahu
    , contributor
    Comments (3764) | Send Message
     
    Just more nothing. ZNGA future remains dormant to negative.
    24 Oct 2013, 05:23 PM Reply Like
  • inkyx
    , contributor
    Comments (524) | Send Message
     
    haleiwahu,

     

    I must admit you stick to your convictions, come fact or fiction. The market isn't listening to you. Your facts may be correct but the market is driven by the fiction of possibilities, not the facts of the past. Your views on ZNGA have been wrong since I've been keeping track of them. You're must be using a different metric than making money from the market, like being always dead right. Am I wrong to say you'd rather be dead right than make money from being on the right side of the trade?
    24 Oct 2013, 09:29 PM Reply Like
  • Yorick
    , contributor
    Comments (598) | Send Message
     
    Radioshack disguised as an internet gaming company.
    25 Oct 2013, 10:31 AM Reply Like
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