Zynga Inc. announced financial results for the second quarter ended June 30, 2014. The company’s revenue was USD 153 million for the second quarter of 2014, a decrease of 34 per cent compared to the second quarter of 2013 and a decrease of 9 per cent compared to the first quarter of 2014. Online game revenue was USD 131 million, a decrease of 36 per cent compared to the second quarter of 2013 and a decrease of one per cent compared to the first quarter of 2014.
Advertising and other revenue was USD 22 million, a decrease of 19 per cent compared to the second quarter of 2013 and a decrease of 38 per cent compared to the first quarter of 2014.
The company reported a net loss of USD 63 million for the second quarter of 2014, compared to net loss of USD 16 million for the second quarter of 2013 and compared to net loss of USD 61 million for the first quarter of 2014.
“While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business. Inside Zynga, we recognise that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale. We are purposefully competing, and while we would like to be further along, we believe we are making the right decisions to grow our business and unlock long term shareholder value,” said Don Mattrick, CEO of Zynga.
“We continue to make significant investments in the highest potential areas of our future pipeline. By Q4 of this year, approximately half of our game-related research and development will be allocated to new and recently launched games – this represents about a 45 per cent increase year over year. We currently have capabilities and brands in content genres with farm, words, casino, racing and people and we are further diversifying our product portfolio in order to reach more consumers and widen our demographic across more entertainment genres,” he added.
Recent business highlights
Generated bookings of USD 175 million, Adjusted EBITDA of USD 14 million and Non-GAAP net income of USD 3 million
Achieved sequential growth in bookings, Adjusted EBITDA, mobile bookings mix and mobile audience for the second consecutive quarter
Delivered mobile audience growth at 22 per cent quarter-over-quarter across monthly active users and 12 per cent across daily active users
Zynga lowers outlook for full year 2014 primarily to reflect the delayed launch of new games and features
Quarter Product Highlights
Launched FarmVille 2: country escape in 16 languages across iOS and Android on April 17, 2014
Partnered with A&ENetwork’s Duck Dynasty series to expand its branded social casino experience with the June launch of Duck Dynasty slots on iPhone, iPad and Google Play
NaturalMotion expanded CSR classics and Clumsy Ninja to additional platforms by launching on Google Play
NaturalMotion released Morpheme 6 and Morpheme 6 with Euphoria as the next generation of its innovative animation system