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TheStreet Open House

Zynga Reports Fourth Quarter And Full Year 2012 Financial Results

SAN FRANCISCO, Feb. 5, 2013 (GLOBE NEWSWIRE) -- Zynga Inc. (Nasdaq:ZNGA), the world's leading provider of social game services, today announced financial results for the fourth quarter and full year ended December 31, 2012.

  • Full year 2012 revenue of $1.28 billion, up 12% year-over-year, and bookings of $1.15 billion, down 1% year- over-year
  • Full year net loss of $209 million and adjusted EBITDA of $213 million
  • Full year 2012 GAAP EPS of ($0.28) and non-GAAP EPS of $0.07
  • Q4 revenue of $311 million, flat year-over-year, and bookings of $261 million, down 15% year-over-year
  • Q4 net loss of $48.6 million, down 89% year-over-year, adjusted EBITDA of $45 million, down 34% year-over- year
  • Q4 GAAP EPS of ($0.06) and non-GAAP EPS of $0.01

"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."

Financial Highlights (in thousands, except per share data)

  Qu arter ended Year ended
G AA P Results D e c 31, 2012 D e c 31, 2011 D e c 31, 2012 D e c 31, 2011
Revenue $ 311,165 $ 311,237 $ 1,281,267 $ 1,140,100
Net loss $ (48,561) $ (435,005) $ (209,448) $ (404,316)
Diluted net loss per share $ (0.06) $ (1.22) $ (0.28) $ (1.40)
         
Non-GAAP Results        
Bookings  $ 261,269  $ 306,507  $ 1,147,627  $ 1,155,509
Adjusted EBITDA $ 45,018 $ 67,801 $ 213,233 $ 303,274
Non-GAAP net income $ 6,935 $ 37,153 $ 58,178 $ 182,483
Non-GAAP earnings per share $ 0.01 $ 0.05 $ 0.07 $ 0.24

Fourth Quarter 2012 Business Highlights

  • Daily active users (DAUs) increased from 54 million in the fourth quarter of 2011 to 56 million in the fourth quarter of 2012, up 3% year-over-year. On a consecutive quarter basis, DAUs were down 6% from 60 million in the third quarter of 2012.
  • Monthly active users (MAUs) increased from 240 million in the fourth quarter of 2011 to 298 million in the fourth quarter of 2012, up 24% year-over-year. On a consecutive quarter basis, MAUs were down 4% from 311 million in the third quarter of 2012.
  • Monthly unique users (MUUs) increased from 153 million in the fourth quarter of 2011 to 167 million in the fourth quarter of 2012, up 9% year-over-year. On a consecutive quarter basis, MUUs were down 6% from 177 million in the third quarter of 2012.
  • Average daily bookings per average DAU (ABPU) decreased from $0.061 in the fourth quarter of 2011 to $0.051 in the fourth quarter of 2012, down 17% year-over-year. On a consecutive quarter basis, ABPU was up 8% from $0.047 in the third quarter of 2012.
  • Monthly Unique Payers (MUPs) were 2.9 million in the fourth quarter of 2012, down 1% year-over-year and down 2% quarter-over-quarter.
  • Zynga released six new titles during the fourth quarter of 2012, including four new titles on web-based platforms: Bubble Safari Ocean, CityVille 2, C oasterVille and The Friend Game; and two new titles on mobile platforms: Ayakashi and Party Place. In addition, Zynga launched mobile versions of Bubble Safari and Ruby Blast.
  • As of December 31, 2012, Zynga had five of the top 10 games on Facebook, based on DAUs as reported by AppData, including some of its most established titles, Words With Friends and Zynga Poker, and some of its newer games , Bubble Safari, ChefVille and FarmVille 2.
  • In the fourth quarter of 2012, Zynga continued to expand its platform offering for third-party publishers, launching eight web games and four mobile games.
  • In December 2012, Zynga mobile game players in the US spent more time in Zynga games than the next five game companies combined, according to comScore.

"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."

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