Though Zynga (ZNGA) beat Q1 estimates thanks to strong FarmVille 2 bookings, its quarterly...

Though Zynga (ZNGA) beat Q1 estimates thanks to strong FarmVille 2 bookings, its quarterly metrics help explain its poor Q2 guidance. Daily active users (DAUs) fell 8% Q/Q and 21% Y/Y in Q1 to 52M, after having fallen 6% Q/Q in Q4. Monthly active users fell 15% Q/Q and 13% Y/Y to 253M, monthly unique payers fell 14% Q/Q and 30% Y/Y to 2.5M, and average daily bookings per DAU fell 2% Q/Q and 11% Y/Y to $0.055. Cost controls are keeping Zynga from witnessing huge cash burn: R&D spend -31% Y/Y, sales/marketing -52%, G&A -41%. Only $2.5M worth of buybacks took place. Can real-money gambling help turn the tide? Shares -9.2% AH. (Q4 data) (PR)

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  • DIgitalMediaView
    , contributor
    Comments (631) | Send Message
    Regarding the closing question about real-money gambling...Having just read the earnings call transcript, if you judge by how little gambling is mentioned, how little money company execs expect from it near term through their UK partnership with Bwin, and how uncertain they are about the pace or scope of regulatory change in the US, the answer is that Pincus et al don't think gambling can turn the tide any time soon.
    24 Apr 2013, 07:48 PM Reply Like
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