After the beating Zynga took in 2012, nobody was really looking forward to its year end results. It was assumed that everything would be doom and gloom for the troubled social game developer. The good news is that revenue and DAUs/MAUs are up. Everything else is just kind of middling.
Starting off with revenue, Zynga reported that full year 2012 revenue of $1.28 billion, which is an increase of 12 percent year-over-year. Quarter four revenue was at $311 million, which is pretty much flat year-over-year. Bookings in both full year and quarter four were down 1 percent and 15 percent respectively.
“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.”
On a year-over-year basis, DAUs and MAUs were up for Zynga. DAUs increased from 54 million in Q4 2011 to 56 million in Q4 2012. MAUs increased from 240 million in Q4 2011 to 298 million in Q4 2012. On a consecutive quarter basis, however, DAUs and MAUs were down 6 percent and 4 percent respectively.
Even if its quarterly users were down, Zynga still had some of the top performing games on Web-based platforms. It also had five of top the 10 games on Facebook in December of last year. That’s just one month, however, and data from App Center showed Zynga had none of its games in the top five Facebook games of 2012.
“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.”
Here’s a breakdown of the annual and fourth quarter results:
2012 Annual Financial Summary
Fourth Quarter 2012 Financial Summary
I think we all expected this result. Zynga started off 2012 doing pretty well for itself, but it made a few bad decisions in investments early on, including the acquisition of OMGPOP for $200 million. The company was also forced to shut down a few studios, lay off over 100 employees and stop hosting numerous games, including the hotly anticipated, but ultimately ignored Mafia Wars 2.
Zynga’s results may not have been great, but investors are somewhat pleased with its performance. The company’s stock was trading 7 percent higher at $2.74 at closing. It’s still rising in after-hours trading with the company’s share price currently at $2.88.