Zynga Q3 2012 Earnings: $317M Revenue, 317M Users

Zynga just announced its earnings for Q3 2012, with revenue of $317 million, up 3% year-over-year, and a net loss of $53 million. It has had a rocky quarter, with its stock pricing dipping to an all time low. It is currently valued just slightly more than its cash reserves and securities, which indicates how much investors really believe in its future earnings potential.

Mark Pincus, CEO and Founder, Zynga, said:

“While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming. We’re implementing a number of steps to drive long-term growth and profitability. The successful launches of FarmVille 2 and ChefVille in the third quarter demonstrate that when we develop great games, our large player audience engages. It’s more clear than ever that along with search, shop, and share, play is a fundamental pillar of the Internet, and Zynga continues to be the leader.”

While Zynga is still light years ahead of its competition in terms of user numbers, it hasn’t been able to monetize them that well, and is seeing very high churn.

By struggling to launch new hits, but mainly by acquisitions, it has managed to increase its monthly active users to 311 million, and its daily active users to 60 million.

It has also seen good numbers for its latest games – ChefVille and FarmVille 2, while some others have crashed and burned.

Here’s a list of business highlights by Zynga:

  • Daily active users (DAUs) increased from 54 million in the third quarter of 2011 to 60 million in the third quarter of 2012, up 10% year-over-year.
  • Monthly active users (MAUs) increased from 227 million in the third quarter of 2011 to 311 million in the third quarter of 2012, up 37% year-over-year.
  • Monthly unique users (MUUs) increased from 152 million in the third quarter of 2011 to 177 million in the third quarter of 2012, up 17% year-over-year.
  • Average daily bookings per average DAU (ABPU) decreased from $0.058 in the third quarter of 2011 to $0.047 in the third quarter of 2012, down 19% year-over-year.
  • Monthly Unique Payers (MUPs) decreased from 4.1 million in the second quarter of 2012 to 3.0 million in the third quarter of 2012, down 28% sequentially, largely driven by Draw Something.

In related news, Zynga laid off more than 100 employees from its Boston office, shutting down its The Ville and Bingo teams in Austin. Both these games had seen user numbers plummet in the last couple of months.

However, there was also good news. Zynga finally announced a real-money gambling partnership in the UK. It will be tying up with bwin.party, and power real-money gambling on Zynga Casino, its platform for online games like Poker and other casino offerings.

It is also focusing on building an ad platform to monetize its massive user base, and also incentivize other developers to work with Zynga and promote their apps. It may also open it to other developers by integrating it with Zynga Platform.

via  Zynga – SEC

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