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Zynga (ZNGA)

  • Thu, Aug. 6, 4:19 PM
    • Zynga (NASDAQ:ZNGA) has slipped 1.6% after hours as the company guided to the low side of Q3 expectations, while revenues came in 11% higher than consensus.
    • Total bookings were $174M. Mobile bookings of $115M were up 30% Y/Y and now represent 66% of overall bookings.
    • GAAP revenue by segment: Online game, $162.2M (up 23.8%); Advertising and other, $37.8M (up 69.6%).
    • Its mobile slot-machine games -- Wizard of Oz Slots and Hit It Rich! Slots -- have grown 274% Y/Y (32% sequentially), and the company will launch a Willy Wonka slots game after a multiyear agreement with Warner Bros.
    • Average DAUs of 21M were down 23% from the prior year; Average MAUs of 83M were down 32%; and average daily bookings per average DAUs were $0.091 (up 29% Y/Y, up 21% from Q1).
    • Cash and marketable securities were $1.1B.
    • The company guided to Q3 revenue of $175M-$190M (vs. $186M expected) and a (non-GAAP) EPS of -$0.02 to -$0.01, vs. an expectation of break-even. It said adjusted EBITDA should be -$17M to -$7M, vs. an expected +$7.5M.
    • Zynga also appointed Frank Gibeau, "one of the top strategists in mobile gaming," to its board.
    • Conference call to come at 5 p.m. ET
    • Press release
  • Thu, Aug. 6, 4:06 PM
    • Zynga (NASDAQ:ZNGA): Q2 EPS of -$0.01 beats by $0.01.
    • Revenue of $174.46M (-0.4% Y/Y) beats by $17.62M.
    • Shares -6.69%.
    • Press Release
  • Wed, May 6, 4:43 PM
    • Zynga (NASDAQ:ZNGA) is now up 6.5% in late trading (following a day where it gained 4.4%) after posting a narrower net loss that was better than expected, and beating revenue expectations, while setting up a $100M cost savings plan including layoffs.
    • Adjusted EBITDA was $2M, vs. expectations of -$15M. Mobile bookings are up 84% to make up 63% of bookings, CEO Mark Pincus noted.
    • Average daily bookings per average DAU rose 18%, to $0.076. That's down sequentially from $0.084. Monthly unique players were 1.1M, down from the prior year's 1.1M. Daily active users were 25M, down from the prior 28M.
    • Job cuts might be expected to come from the company's "old guard" of social game developers, as Zynga made a major move to mobile strategy with yesterday's release of Empires & Allies. The company plans six to eight new mobile games in 2015.
    • Conference call at 5 p.m. ET.
    • Press release
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  • Wed, May 6, 4:19 PM
    • Zynga (NASDAQ:ZNGA): Q1 EPS of -$0.01 beats by $0.01.
    • Revenue of $183.3M (+9.1% Y/Y) beats by $35.6M.
    • Shares +8.8%.
  • Thu, Feb. 12, 4:52 PM
    • "We will deliver a 100 percent mobile-first new product slate featuring new games, with a goal of ending 2015 with more than 75% of our fourth quarter bookings coming from mobile," says CEO Don Mattrick in Zynga's (NASDAQ:ZNGA) Q4 report. Mobile made up 60% of bookings in Q3, up from 55% in Q3 and 37% a year ago.
    • As part of its mobile push, Zynga plans to launch action strategy titles Dawn of Titans and Empires & Allies; NaturalMotion is developing the former. Zynga also plans to launch FarmVille: Harvest Swap, a match-3 game for the core franchise.
    • No explanation is given in Zynga's earnings release for the Q4 bookings shortfall or its light guidance. Though bookings rose thanks in part to the NaturalMotion acquisition, monthly active users fell to 108M from 112M in both Q3 and Q4 2013. Monthly unique payers fell to 1.1M from 1.3M in Q3 and Q4 2013.
    • Zynga has confirmed its Beijing studio closing, and says the move will save it $7M/year. GAAP costs/expenses (boosted by NaturalMotion) rose 18% Y/Y in Q4 to $241.5M, with R&D totaling $105.1M. The cash/investment balance is at $1.1B.
    • Shares are down to $2.39 AH.
    • Zynga's Q4 results/guidance, PR
  • Thu, Feb. 12, 4:07 PM
    • Zynga (NASDAQ:ZNGA): Q4 EPS of $0.00 in-line.
    • Bookings of $182.4M (+24.4% Y/Y) misses by $18.71M.
    • Expects Q1 bookings of $140M-$150M and EPS of -$0.02 to -$0.03, below a consensus of $200.9M and $0.00.
    • Shares -11.3% AH.
    • Press Release
  • Wed, Feb. 11, 5:35 PM
  • Nov. 7, 2014, 12:52 PM
    • Though some of Zynga's (NASDAQ:ZNGA) Q3 metrics were lower than Needham expected, analyst Sean McGowan thinks the strength in Zynga's bookings per paying user (in spite of a delayed Zynga Poker refresh) is "encouraging enough to signal the turnaround will gain momentum."
    • McGowan has upgraded shares to Buy, and set a $3.25 target. He's only slightly increasing his 2014 and 2015 estimates, but thinks "2016 could be considerably better than our prior estimate."
    • Zynga's average bookings per daily active user (paying or otherwise) rose 8% Q/Q and 34% Y/Y in Q3 to $0.055. On the other hand, DAUs fell 9% Q/Q and 13% Y/Y to 26M, and MAUs 14% Q/Q and 16% Y/Y to 112M. Monthly unique payers fell 19% Q/Q and 19% Y/Y to 1.3M.
    • Taking stock of the numbers, Sterne Agee's Arvind Bhatia (Neutral) argues Zynga is still a "show-me" story, given game delays and "the resultant pressure on traffic, bookings and margins." But he thinks growth could resume in 2015 as new games launch, and notes the company's $1.1B cash balance offers downside protection.
    • While PC (Facebook) bookings came under pressure, Zynga's mobile bookings rose 10% Q/Q and 111% Y/Y in Q3, and made up 55% of total bookings; Y/Y mobile growth was boosted by the NaturalMotion deal. Zynga also states the FarmVille, Casino, and Words With Friends franchises collectively saw 30% Y/Y bookings growth.
    • Results/guidance, PR
  • Nov. 6, 2014, 4:10 PM
    • Zynga (NASDAQ:ZNGA): Q3 EPS of -$0.01 in-line.
    • Bookings of $175.5M (+15% Y/Y) beats by $3.8M.
    • Expects Q4 bookings of $183M-$213M and EPS of -$0.01 to $0.01, in-line with a consensus of $200.2M and $0.00.
    • Shares +6.8% AH.
    • Press Release
  • 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%.
    • Press Release
  • 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%.
    • Press Release
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  • Jan. 30, 2014, 4:14 PM
    • Zynga (ZNGA) has released its Q4 report a week ahead of schedule. The company had Q4 bookings of $146.7M (-44% Y/Y), and EPS of -$0.03. That beats a consensus of $141.1M and -$0.03.
    • Zynga also announces it's buying leading mobile game developer NaturalMotion (responsible for hit titles such as CSR Racing and Clumsy Ninja) for $527M - $391M in cash and 39.8M shares.
    • Also: Zynga is cutting another 314 jobs (15% of its workforce). It expects to record pre-tax charges of $15M-$17M, and achieve $33M-$35M in annual cost savings.
    • Zynga expects Q1 bookings of $138M-$148M and EPS of -$0.01 vs. a consensus of $145.6M and -$0.02. It expects 2014 bookings (boosted by NautralMotion) of $760M-$810M and EPS of $0.01-$0.03 vs. a consensus of $629.1M and -$0.04.
    • Shares remain halted.
  • Jan. 29, 2014, 4:39 PM
    • Facebook's (FB) mobile ad sales jumped 41% Q/Q and roughly 4x Y/Y in seasonally strong Q4 to $1.24B, a figure that soundly beat many analyst forecasts. Mobile accounted for 53% of ad sales, up from 49% in Q3 and 23% a year ago.
    • Total ad sales rose 76% Y/Y (an acceleration from Q3's 66% clip) to $2.34B. Payments revenue (important for ZNGA) totaled $241M, up from $218M in Q3 and favorable to a year-ago level of $256M, given 4 months were counted last year.
    • Facebook ended Q4 with 1.23B monthly active users (MAUs), +3% Q/Q and +16% Y/Y. Mobile MAUs grew 8% Q/Q and 39% Y/Y to 945M (77% of total MAUs). Mobile-only MAUs (a lot of them are in emerging markets) rose 17% Q/Q and 89% Y/Y to 296M (24% of total MAUs).
    • Costs/expenses rose 37% Y/Y, a slowdown from Q3's 45% clip and well below revenue growth of 63%. R&D spend +37% to $408M, sales/marketing +51% to $292M.
    • Op. margin rose to an eye-popping 56% from 46% a year ago. Capex (often strong in Q4) was a hefty $483M, up from $284M in Q3.
    • CC at 5PM ET. Q4 results, PR, slides.
  • Nov. 13, 2013, 3:49 PM
    • Six days after dropping in the face of Twitter's strong debut, high-flying Internet names are rallying in the wake of Chinese microblogging leader Sina's Q3 beat and strong Q4 guidance.
    • The day has also seen a dismal IPO from online textbook rental leader Chegg, a WSJ report of a rejected $3B+ Facebook offer for Snapchat, and a vague afternoon rumor about M&A interest in Trulia from Realogy.
    • U.S. standouts: ZNGA +7.4%. LNKD +4.8%. P +3.3%. ANGI +2.6%. GSVC +4.1% (owns a Chegg stake).
    • Chinese standouts: QIHU +8.9%. SFUN +7.5%. LITB +6.4%. YY +6.9%. CYOU +6.3%. QUNR +5.7%. CTRP +3.7%.
    • Baidu (BIDU +1.4%) is up moderately following news Chinese online video rivals Sohu (SOHU +1.7%) and Youku (YOKU +3%) have joined the MPAA and various entertainment/media companies in suing it for piracy. The assorted parties accuse Baidu of enabling piracy through its video search engine, as well as through video player apps and a TV dongle.
    • The suit comes as Baidu ramps its content spending for its iQiyi and PPS video sites.
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Company Description
Zynga Inc provides social game services. The Company develops, markets and operates social gamesas live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook.