Zynga Losses Shrink in the Holiday Quarter - News/ 1,662 Views
Zynga has released its quarterly report and full year report for the fiscal year which ended December 31, 2012. Revenue for the Holiday quarter remained flat year-on-year at $311.17 million losses decreased dramatically from $435.01 million a year ago to $48.56 million.
For the full year revenue increased to $1.28 billion, up from $1.14 billion the previous year. Losses for the full year were cut in half to $209.45 million, from $404.32 million.
"The biggest highlight of the quarter was seeing our team deliver a successful sequel in FarmVille2, a next generation social game that offers cutting edge 3-D experiences loved by millions of FarmVille fans," said Mark Pincus, CEO and Founder, Zynga. "In 2013 we're excited to bring this new class of social games to mobile phones and tablets and build a network that offers an easier, better way for people to play together."
The number of daily active users increased slightly to 56 million during the Holiday quarter 2012. This is an increase over 54 million during the same period a year ago. However the daily active users dropped six percent when compared to the third quarter 2012.
The number of monthly active users increased to 298 million during the Holiday quarter 2012. A bump from 240 million during the Holiday quarter 2011. Monthly active users did drop four percent when compared to the third quarter 2012.
At the end of 2012 Zynga had five of the top 10 most popular games on Facebook, based on the number of daily active users. The five titles are Words With Friends, Zynga Poker, Bubble Safari, ChefVille and FarmVille 2.
"Our team executed well in the fourth quarter and made important progress in building sustainable new revenue streams and further aligning our company around our best growth opportunities," said David Ko, Chief Operations Officer, Zynga. "2013 will be a pivotal transition year and we are focused on achieving three strategic objectives: growing our franchises on mobile and web, expanding our network and maintaining profitability on an adjusted EBITDA basis."
"With 298 million monthly average users, including 72 million on mobile alone, Zynga already has the largest social gaming audience and remains the best positioned company to lead in building the future of social gaming," Ko continued.
For the first quarter 2013, which ends March 31, 2013, Zynga expects reach revenues of $255 million to $265. Zynga also expects to cut its losses from $48.56 million to between $12 million and $32 million.