Zynga: There's Still A Compelling Short Case Here
Vince Martin • 27 Comments
Vince Martin • 27 Comments
Zynga Is Still A Dog
Vince Martin • 24 Comments
Vince Martin • 24 Comments
Wed, Nov. 2, 4:37 PM
- In operational results from its Q3 earnings, Zynga (ZNGA, now down 3.3% after hours) saw mobile revenue growing but daily active users on the decline.
- Mobile revenue of $145.9M grew 16%, and made up 80% of overall revenue, while mobile bookings of $162.3M were up 34% Y/Y and made up 83% of overall bookings.
- Average daily active users fell 3%, to 18M; of those, mobile DAUs rose 1% and Web DAUs fell 21%. Average monthly active users fell 13% to 66M. Of those, mobile MAUs were down 9% and Web MAUs down 29%.
- Average daily bookings per average DAU rose 16%, to $0.116. Payer conversion was 2.3% (57M monthly unique users and 1.3M monthly unique payers, up 12% and 48% respectively).
- Games' contribution to revenue: Zynga Poker, 19%; Wizard of Oz Slots, 12%; Hit It Rich! Slots, 12%; FarmVille 2, 11%. "Apple and Google continue to be our two largest platform partners for online game bookings."
- Previously: Zynga falls 5% after offering light earnings guidance (Nov. 02 2016)
- Previously: Zynga EPS of -$0.05 (Nov. 02 2016)
Wed, Nov. 2, 4:24 PM
- Zynga (ZNGA -2.1%) is off 5.1% after hours following its Q3 earnings report, where it showed promising revenues but offered light guidance for the out quarter.
- GAAP revenue came to $182.4M and bookings to $196.7M, both above guidance, while the company's loss on a GAAP basis was $41.7M.
- The company began reporting EBITDA using a new methodology; it's $17.9M (above guidance) with old method, $3.6M with new method.
- Zynga had $870.8M in cash, equivalents and marketable securities, up $2.4M Q/Q.
- For Q4, the company's guiding to GAAP revenue of $180M-$190M (and non-GAAP bookings of $185M-$195M), vs. consensus for revenues of $204.8M. Net loss per share is seen at $0.03 on a GAAP basis (vs. expected loss of $0.02), and adjusted EBITDA -- forecast using new methodology -- is expected at $12M-$14M, vs. consensus for $21.3M.
- Conference call to come at 5 p.m. ET.
- Press Release
Wed, Nov. 2, 4:07 PM
Tue, Nov. 1, 5:35 PM
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Mon, Oct. 31, 2:40 PM
- There's a growing wave of support for a legalized sports betting framework in the U.S. to take advantage of the huge market and reel in some of the money going to off-shore and illegal betting options.
- State lotteries, sports betting shops and Native American casino entities are all calling for action from Capitol Hill or on a state-by-state basis.
- Professional sports league also cooperating. "We've been supportive of legalized sports betting, and we'll continue to be supportive," says NBA Senior VP Dan Spillane. Already in the mix, a NHL expansion team is due to debut in Las Vegas next year and the NFL is trying to lure the Oakland Raiders to the region.
- Perhaps the most intriguing angle with legalized sports betting is the growing interest from tech firms in having their hands in the billions of dollars likely to flow through the U.S. betting market. ESPN reports that Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) already have patents covering sports betting platforms, while some industry experts think a widespread mobile betting platform from a tech heavyweight is inevitable (Facebook or Google?).
- What to watch: If Congress takes the final decisive step, a number of dramatic partnerships and M&A deals between Silicon Valley and existing casino operators could start flying.
- Related stocks: OTCPK:EIHDF, OTC:BTFRF, OTC:PYGMF, OTCPK:PDYPY, OTC:WIMHF, OTCPK:WIMHY, RRR, CZR, MGM, BYD, OTC:LDBKF, OTCPK:LDBKY, OTCPK:RANKF, DUEL, DDAY, DRAFT, GDEN, NYNY, CHDN, FLL, PENN, SGMS, CNTY, OTCQB:TPCA, LVS, ERI, WYNN, ZNGA.
- Related ETF: BJK.
Thu, Sep. 29, 4:29 PM
- In more senior leadership shuffling, Zynga (ZNGA -0.4%) has named Gerard Griffin its new chief financial officer.
- Griffin, a 25-year veteran of the games/media sector, will report in to CEO Frank Gibeau. He had previously spent more than 10 years with Electronic Arts, most recently as senior VP of Finance, as well as holding senior finance roles at NBC and Primedia.
- It's the latest C-suite change for the game maker, which named Doug Scott its new chief marketing officer earlier this week, and tapped Matt Bromberg its chief operating officer last month. CEO Gibeau took over for Mark Pincus on March 1.
- After hours: ZNGA +0.7%.
Mon, Sep. 26, 10:45 AM
- Zynga (ZNGA +0.4%) has named gaming veteran Doug Scott its new chief marketing officer.
- He replaces Jennifer Nuckles, who departed the job after two years to join Doctors on Demand.
- Scott has been working as an adviser to YouTube Music. Along with work as the CMO of BandPage (now acquired by Google), he was VP of marketing and revenue at Japan's DeNA.
- He has also spent nearly six years at Electronic Arts working a number of that company's franchises.
Wed, Aug. 10, 9:10 AM
- Former NBA Commissioner David Stern will make a key speech at the Global Gaming Expo next month in which he will present the case for legalizing sports betting, according to ESPN.
- Stern's turnaround on sports betting lines him up with the views of current NBA commissioner Adam Silver who supports a federal framework of betting regulations. The NBA has a small stake in FanDuel (Private:DUEL) in what could be considered a bit of a hedge.
- Sports betting is slated to be a major focus of the Global Gaming Expo scheduled for September 26-September 29 at the Sands Expo. The Nevada Gaming Commission is also considering allowing remote wagering from all 50 states in what could be a major disruption to the industry if passed.
- Earlier this week, a federal court blocked New Jersey from offering legalized sports betting as it upheld the Professional and Amateur Sports Protection Act.
- POTUS watch: Both Donald Trump and Hillary Clinton have offered some support for legalized sports betting in prior comments, but don't have well-defined positions on the issue.
- Broadly-related stocks: ISLE, PENN, PNK, BYD, GLPI, CHDN, MCRI, OTCQB:TPCA, CNTY, ERI, NYNY, DDE, UWN, FLL, CZR, CACQ, MGM, LVS, WYNN, DRAFT, DDAY, OTCPK:DTFSF, ZNGA, OTC:WIMHF, AYA, OTCPK:EIHDF, SGMS, OTCQB:GLXZ.
Fri, Aug. 5, 12:45 PM
- After hitting a 52-week high yesterday, Zynga (NASDAQ:ZNGA) is 7.2% lower today following a Q2 revenue miss that featured some downbeat news on its bookings.
- Bookings (recognized revenue plus the change in deferred revenue) fell 4% from the first quarter, to $175M. The company guided Q3 bookings for $180M-$190M, along with revenue of $170M-$180M (below consensus for $183.9M).
- That guidance looks conservative, Jefferies says in reiterating its Buy rating and $5 price target (implying 81% upside from today's $2.76): "By year-end we believe user metrics (which have mostly stabilized) could begin to inflect upwards for the first time in years. We note ZNGA does not need a breakout hit to drive growth and profitability and we continue to think the risk/reward looks attractive at these levels especially with $1.25 per share in cash, investments, and real estate."
Fri, Aug. 5, 9:12 AM
Thu, Aug. 4, 4:15 PM
- Zynga (NASDAQ:ZNGA) is off 9.8% after hours as its Q2 earnings came to break-even as expected, but missed on revenues, and users continued to decline.
- Revenues fell 9% to $182M; online game revenue of $136M was down 16% Y/Y. Bookings came to $175M, flat Y/Y but down 4% sequentially.
- Average daily active users fell 15%: Average mobile DAUs were down 11% to 15M, and average Web DAUs down 28% to 3M.
- Average monthly active users dropped 26% to 61M. Of those, average mobile MAUs fell 23% to 49M while average Web MAUs dropped 37% to 12M.
- Average daily bookings per average DAUs grew 17% to $0.107. Average monthly unique payers were 0.9M of 50M monthly unique users, ending up as a payer conversion rate of 1.8% (up from year-ago 1.6%).
- Live discussion to come at 5 p.m. ET.
- Press Release
Thu, Aug. 4, 4:05 PM
Thu, Aug. 4, 10:20 AM
- Zynga (NASDAQ:ZNGA) has tapped Matt Bromberg as its chief operating officer, effective Aug. 8.
- He joins the social-gaming company after most recently serving as senior VP of strategy and operations for mobile gaming at Electronic Arts. Prior to that role, he was general manager of EA's Bioware studios.
- Zynga says he will have oversight of the Business Operations and Strategy, Technology, IT, Data Science, Visual Design and Global Player Experience teams, as well as its Bangalore, India-based game studio.
- The company reports Q2 earnings after the closing bell today.
Wed, Aug. 3, 5:35 PM
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Fri, Jul. 22, 5:37 PM
Thu, May 5, 9:12 AM
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