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Aug. 7, 2014, 5:36 PM
Aug. 7, 2014, 4:17 PM
- Citing "the delayed launch of new games and new features," Zynga (NASDAQ:ZNGA) now expects 2014 bookings of $695M-$725M, below prior guidance of $770M-$810M and an $800.9M consensus. EPS guidance of -$0.01 to $0.00 is slightly below a $0.02 consensus.
- Q3 guidance is for bookings of $165M-$175M and EPS of -$0.01 to $0.00, below a consensus of $212.4M and $0.01.
- Q2 bookings of $175.1M missed a $191.2M consensus, and were down 7% Y/Y. Monthly active users totaled 130M, up from 123M in Q1 (aided by NaturalMotion) but down from 187M a year ago. Daily active users were 29M vs. 28M in Q1 and 39M a year ago.
- Along with its results, Zynga has announced a deal with Warner Bros. to offer Looney Tunes-themed infinite runner games, and deals with the NFL and Tiger Woods to offer sports games.
- Cost cuts are keeping Zynga from posting huge losses on account of its top-line weakness: GAAP costs/expenses fell 16% Y/Y in Q2 to $219.5M, with R&D spend dropping 25% to $93.7M.
- Zynga ended Q2 with $1.15B in cash/investments, up slightly Q/Q
- Q2 results, PR
Aug. 7, 2014, 4:03 PM
- Zynga (NASDAQ:ZNGA): Q2 EPS of $0 in-line.
- Bookings of $175.1M (-7% Y/Y) misses by $16.1M.
- Shares -9.6%.
Jul. 9, 2014, 4:09 PM
- Regina Dugan, currently the head of Google's Advanced Technology & Products (ATAP) R&D unit, has been added to Zynga's (ZNGA) board.
- Among other things, ATAP is responsible for Google's Project Ara custom/modular phone initiative. Before joining Google, Dugan headed the DoD's DARPA R&D division.
- Zynga also announces famed VC John Doerr (already on the board) has been named lead independent director. LinkedIn co-founder Reid Hoffman and DreamWorks CEO Jeffrey Katzenberg left Zynga's board earlier this year.
- ZNGA +1.3% AH.
Jun. 13, 2014, 6:36 PM
- VC/LinkedIn co-founder Reid Hoffman (an early Zynga investor) and DreamWorks CEO Jeffrey Katzenberg have left Zynga's (ZNGA) board. Zynga's site now shows 7 directors.
- Due to the departures, Zynga is no longer compliant with a Nasdaq rule that requires a majority of independent directors. The board (what's left of it) is "actively identifying, evaluating and recruiting potential candidates."
- Hoffman and Katzenberg's exits come as Don Mattrick continues to overhaul Zynga's executive ranks.
Jun. 13, 2014, 9:18 AM
- YELP +9.4% premarket, Groupon (GRPN) +7.1%, Pandora (P) +3.5%, Angie's List (ANGI) +4.7%, TripAdvisor (TRIP) +3%, and Zynga (ZNGA) +2.3% after Priceline announces it's buying OpenTable for $2.6B (a 46% premium to yesterday's close).
- OpenTable (OPEN), meanwhile, is up to $104.18 - $1.18 above Priceline's acquisition price - as investors bet a higher offer (perhaps from Google, eBay, or Amazon?) will arrive.
- The deal is the largest acquisition of a public U.S. Internet company in recent history.
Jun. 10, 2014, 12:29 PM
- After meeting with new CFO David Lee yesterday, UBS is upbeat about Zynga's (ZNGA) mid-term and long-term outlook.
- UBS: "We believe our core investment case (improved bookings growth, margin leverage from growth/cost cuts, & greater mobile focus) remains intact, and we expect Zynga to remain a beat/raise story going forward."
- Shares fell hard last Thursday following CEO Don Mattrick's BofA/Merrill conference talk. They currently go for just 2.1x 2014E sales and 1.7x 2015E sales exc. cash/investments.
Jun. 5, 2014, 12:49 PM
Jun. 5, 2014, 11:22 AM
- Zynga (ZNGA) has plunged below $3 on volume (50.9M shares) that's already nearly 2x a daily average of 28.2M.
- CEO Don Mattrick held a Q&A session yesterday afternoon at a BofA/Merrill conference (transcript). Though generally upbeat, he admitted Zynga could be affected by summer seasonality, and that near-term EBITDA margins remain pressured by product investments (e.g. bringing FarmVille to mobile).
- Mattrick also: 1) Noted Zynga's headcount had fallen to 1,800 as of January from 2,650 at the time of his hiring; the NaturalMotion deal added 270 employees. 2) Declares Zynga's audience has "stabilized" after many quarters of steep DAU/MAU losses. 3) Suggests he's open to using part of Zynga's $1.1B+ cash balance on new acquisitions/partnerships.
Jun. 3, 2014, 7:04 PM
- Zynga (ZNGA) mobile SVP Travis Boatman (recently in charge of the Words with Friends team), ex-Zynga Studios chief Steve Chiang, and ex-acquisitions chief Terence Fung have joined the list of execs to leave since Don Mattrick took over as CEO last summer.
- Mattrick launched a major restructuring last August that included removing the COO position. More recently, his company has made a CFO change, named a new Studios chief, and announced lightning-rod founder Mark Pincus is stepping down from an operational role (albeit while remaining chairman).
May 7, 2014, 10:20 AM
- Up premarket after posting a Q1 EPS beat and moderate Q/Q bookings growth, King Digital (KING -8.7%) has sharply reversed course. Concerns about softening Candy Crush Saga bookings and a Q/Q drop in monthly unique payers appear to be the triggers.
- Peers Zynga (ZNGA -5.5%) and Glu Mobile (GLUU -5.6%) are also seeing decent losses amid a broader selloff in Internet stocks - in addition to King, Groupon, AOL, and Zulily are also down sharply post-earnings.
Apr. 24, 2014, 9:28 AM
Apr. 23, 2014, 4:28 PM
- Zynga's (ZNGA) Mark Pincus, whose management style has often come under criticism, is stepping down from an operational role at the company, but will remain chairman. Pincus stepped down as CEO last year to make way for Don Mattrick.
- Zynga also announces it has has hired Microsoft Xbox Live GM Alex Garden to be the head of Zynga Studios, gaming/entertainment industry vet Henry LaBounta to be its chief visual officer, and e-commerce industry vet Jennifer Nuckles to be its marketing chief.
- Q2 guidance is for bookings of $175M-$195M and EPS of -$0.08 to -$0.07 vs. a consensus of $185.9M and -$0.01. 2014 guidance is for bookings of $770M-$810M and EPS of $0.01-$0.03 vs. a consensus of $783.6M and $0.01.
- Q1 results, PR
Apr. 23, 2014, 4:07 PM
- Zynga (ZNGA): Q1 EPS of -$0.01 in-line.
- Revenue of $168M (-36.3% Y/Y) beats by $20.48M.
- Shares -4.5%.
Apr. 17, 2014, 6:58 PM
- While U.S. physical retail video game sales have been slumping for some time (as shown by NPD's data), SuperData estimates U.S. digital gaming revenue rose 9% Y/Y in March to $936M.
- Revenue for subscription titles such as Activision (ATVI +1.2%) cash cow World of Warcraft fell Y/Y, but download and free-to-play revenue rose. Electronic Arts' (EA -0.1%) much-hyped Titanfall delivered the most digital revenue among "boxed" titles.
- SuperData estimates conversion rates (i.e. the ratio of paying users to total users) for social gaming platforms rose to 2.3% from 1.9% six months earlier. But Zynga (ZNGA +4.4%), which had a Q4 conversion rate of 1.7% and only averages $0.13 per DAU (less than its closest rivals), continues to trail.
- Zynga rallied today after officially launching FarmVille 2: Country Escape (first announced in March) in the App Store and Google Play. Morgan Stanley praised the game's monetization potential last week.
- In spite of widespread concerns about slumping Candy Crush Saga (KING -1.3%) usage, SuperData thinks the game is holding up reasonably well for now. It estimates spending rose 1.2% M/M (3 extra days helped), with mobile MAUs rising 0.3% and social (read: Facebook) MAUs falling 2.1%.
- Other game developers: TTWO, GLUU, KNM, SGAMY
Apr. 11, 2014, 1:34 PM
- Zynga's (ZNGA +1.4%) FarmVille 2: Country Escape better aligns game monetization with engagement than past titles, says Morgan Stanley's John Egbert, upgrading shares to Equal-weight.
- Egbert points to healthy Canadian/Australian soft launches as a reason to be optimistic about Country Escape, the first title for Zynga's most lucrative franchise to launch on mobile. He thinks it could be be a top-20 grossing mobile app following its Q2 U.S. launch.
- Egbert also expects Zynga to start post Q/Q bookings and DAU growth after many quarters of huge declines (the NaturalMotion deal should provide a lift), and thinks its will exit 2014 with 50% Y/Y organic bookings growth.
- Zynga is counting on Country Escape to halt FarmVille 2's big share losses. AppData estimates the game has lost nearly half of the 8M Facebook DAUs it had in March 2013. Over the same time, Candy Crush Saga (KING -3%) more than doubled its Facebook app DAU share to 15.8% from 7.3% (in spite of recent softness).
- Zynga is higher thanks to the upgrade and yesterday's CFO change announcement.
Zynga Inc provides social game services. The Company develops, markets and operates social games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook.
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