Zynga Announces Q2 2012 Results With Revenue Of $332 Million, Net Loss Was $22.8 Million, Fall Short Of Expectations

Posted on Jul 25 2012 - 8:43pm by Editorial Staff

The social gaming company Zynga just announced its second quarter 2012 results with revenue of $332 million, up 19% year-over-year, six months year-to-date revenue of $653 million, up 25% year-over-year. The Q2 bookings were $302 million, up 10% year-over-year, six months year-to-date bookings of $631 million, up 12% year-over-year. Q2 GAAP EPS of ($0.03), down from $0.00 in the second quarter of 2011, six months year-to-date GAAP EPS of ($0.15), down from $0.00 in the first half of 2011. Non-GAAP EPS of $0.01, down from $0.05 in the second quarter of 2011, six months year-to-date non-GAAP EPS of $0.06, down from $0.16 in the first half of 2011

Online game revenue was $291.5 million, an increase of 10% compared to the second quarter of 2011 and a decrease of $1.2 million compared to the first quarter of 2012. Advertising revenue was $40.9 million, an increase of 170% compared to the second quarter of 2011 and an increase of 45% compared to the first quarter of 2012. Net loss was $22.8 million compared to net income of $1.4 million for the second quarter of 2011. Net loss for the second quarter of 2012 included $95.5 million of stock-based expense compared to $33.1 million of stock-based expense included in the second quarter of 2011.

Daily active users (DAUs) increased from 59 million in the second quarter of 2011 to 72 million in the second quarter of 2012, up 23% year-over-year. Monthly active users (MAUs) increased from 228 million in the second quarter of 2011 to 306 million in the second quarter of 2012, up 34% year-over-year. Monthly unique users (MUUs) increased from 151 million in the second quarter of 2011 to 192 million in the second quarter of 2012, up 27% year-over-year. Average daily bookings per average DAU (ABPU) decreased from $0.051 in the second quarter of 2011 to $0.046 in the second quarter of 2012, down 10% year-over-year.

Monthly Unique Payers (MUPs) increased from 3.5 million in the first quarter of 2012 to 4.1 million in the second quarter of 2012, up 16% sequentially. The company launched six games during the second quarter of 2012, including Bubble Safari and Ruby Blast and The Ville and three titles on mobile platforms: Zombie Swipeout, Zynga Slots.

“Our games reached record audiences, achieving over 300 million monthly active users. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network,” said Mark Pincus CEO and Founder, Zynga. “We also faced new short-term challenges which led to a sequential decline in bookings. Despite this, we’re optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web.”

Soon after the results, Zynga shares extend losses, slide 40% and that too not limited to Zynga, but Facebook shares fall on Zynga results, forecast, as the social giant result too on the way tomorrow.

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