Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek


Filed under: News | Gaming


3 Ways Zynga Wins Big: Earnings, An Acquisition, A Headcount Cut

Jan 30 2014, 11:42pm CST | by

8 Updates
 3 Ways Zynga Wins Big: Earnings, An Acquisition, A Headcount Cut

YouTube Videos Comments

Recommend Your Tweet as Top Tweet:

Full Story

3 Ways Zynga Wins Big: Earnings, An Acquisition, A Headcount Cut

Zynga came out with 2013 full year and fourth quarter results a full week ahead of schedule, but the move seems to be paying off. Shares were up close to 20% to $4.25 in after-hours trading following the surprise announcement which included 2013 earnings, as well as news of an acquisition and plans to cut jobs.

On a non-GAAP basis the digital gaming company reported $716.2 million in annual bookings — a predictor of sales — down from $1.1 billion in the year prior, but ahead of Wall Street’s $712 million consensus estimate. Adjusted EBITDA came in at $46.5 million and non GAAP net loss was $34.1 million, or minus 4-cents per share.

On a GAAP basis full year revenue came in at $873.3 million, down 32% from the year prior. But the company managed to slash it’s net loss to $37 million from $209.4 million in 2012. Loss per share was 5 cents, versus 28 cents in 2012.

“Over the last 7 months, our teams have been working with a sense of urgency,” said CEO Don Mattrick in a statement. “We finished 2013 in a strong position and expect 2014 to be a growth year.” He declared high hopes for a foundation setting first quarter and noted that investments in popular game Words With Friends and in Zynga’s Casino have begun to pay off.

He added, “Our market is growing as measured by device, audience and dollars and we have the privilege to compete in one of the fastest growing parts of the entertainment industry. We have an ambitious agenda and we are moving quickly to add capabilities that are complementary and strategic to our core growth plans.”

The company also announced that it has acquired NaturalMotion, a privately held mobile gaming company responsible for hits like CSR Racing and Clumsy Ninja. Zynga paid around $527 million for NaturalMotion, including $391 million in cash and 39.8 million Zynga shares at its $3.42 close price on January 29.

In addition to creative and technological gains in mobile, Zynga expects the deal to add between $70 million and $80 million to non-GAAP earnings this year. “NaturalMotion set out to make games that wow millions of people, by being obsessed with quality, disrupting and creating genres, and using almost magical technology,” said Natural Motion CEO Torsten Reil. “We’ve reached our first milestones — creating #1 top-grossing and top-free titles — on our own. We can’t wait to see what we can achieve together with Zynga.”

Finally, Zynga announced what it is calling a “cost reduction plan.” The plan includes cutting 314 employees, approximately 15% of its workforce. The company expects the cuts to result in $33 million to $35 million in pre-tax savings, excluding a first quarter restructuring charge between $15 million and $17 million.

Looking ahead Zynga forecasts first quarter revenue between $155 million and $165 million including the impact of NaturalMotion. Net loss is projected to fall between $56 million and $49 million, including restructuring charges. The company expects bookings in the range of $138 million to $148 million.

For the full year, the outlook on bookings it between $760 million and $810 million, for non-GAAP earnings per share to return to positive territory between 1-cent and 3-cents.

Follow @samsharf

Source: Forbes


You Might Also Like


Sponsored Update

Update: 8

3 Huge Risks for King Digital Investors


Zynga Reports Quarterly Earnings
Can King Digital avoid the pitfalls suffered ...
Source:   Full article at: Jun 26 2014, 1:30pm CDT


Update: 7

Win a Trip to See Lucy Hale at The Grand Ole Opry courtesy of FarmVille 2: Country Escape

Source: Just Jared

Lucy Hale Grand Ole Opry Debut
In celebration of the newly released FarmVille 2: Country Escape app, Zynga invites you to be a part of Lucy Hale’s country music debut. Enter for a chance to win a trip for two to see Lucy perform at Nashville’s iconic Grand Ole Opry. Join Lucy as she performs songs from her debut country album Road Between. Enter the giveaway below! Adam Levine is reportedly apologizing to his exes before his wedding – US Weekly Kim ...
Source: Just Jared   Full article at: Just Jared Jun 11 2014, 10:15am CDT

More From the Web

Update: 6

E3: Microsoft Goes Games First And Only In Briefing

Source: Deadline

It didn’t take Phil Spencer, Head of Xbox for Microsoft, long to tack back from last year’s entertainment focus to one purely about games, which is all he said he would talk about during this morning’s presentation to media and analysts ahead of the big E3 videogame conference in Los Angeles. “This generation (of game consoles) is off to the hottest start in history,” Spencer said. “This benefits ev ...
Source: Deadline  Full article at: Deadline Jun 9 2014, 1:32pm CDT

Update: 4

3 crazy-big downtown Orlando ideas: Parks under I-4, revamped Lake Eola amphitheater, Thornton Park Westside

Source: Orlando Business Journal

Close your eyes and think of downtown Orlando in 20 years. You work downtown for a massive tech company, but not Apple or Zynga; this tech firm sprouted in downtown and went public two years back. You get off work and head home to Thornton Park Westside, a thriving multi-cultural bohemian neighborhood that used to be called Parramore. That night, you try to decide between catching a concert at the revamped amphitheater at Lake Eola or the indie music festival happening underne ...
Source: Orlando Business Journal   Full article at: Orlando Business Journal Jun 5 2014, 3:09pm CDT

Update: 3

Ellis Act Legislation By State Senator Mark Leno Of San Francisco Passes Senate

Source: CBS San Francisco

San Francisco Mayor Ed Lee Makes Announcement Regarding City's Superbowl Host Bid
SACRAMENTO (KCBS) – Legislation that would help curtail the number of Ellis Act evictions in San Francisco has passed the Senate with a 21-13 vote, this after failing to get the necessary votes on Wednesday in Sacramento. After Senate Bill 1439 failed to pass, the author, state Senator Mark Leno (D-San Francisco) agreed to make changes to differentiate between family owners and big business interests. Ellis Act Legislation By State Senator Mark Leno Of San Francisco Passes S ...
Source: CBS San Francisco   Full article at: CBS San Francisco May 29 2014, 8:43pm CDT

Update: 2

Cloud for Business

Source: Gartner Inc.

The New York Times Next New World Conference
Earlier this month the Times ran  its regular “Cloud for Business” insert, in which I was asked to write a column on “Cloud for Digital Business” (see full text here).  For reference I included below the piece on “The future of Cloud Computing”  that it ran in an earlier edition. An item called: Cloud Spotting is the Shape of Things to Come. When asked to write a column with an ambitious title like “The future of the cloud”, it is a good idea to look first at where cloud is at the mo ...
Source: Gartner Inc.   Full article at: Gartner Inc. May 22 2014, 11:49pm CDT

Update: 1

Sources: Xbox Live to remove Gold requirement for Netflix, Hulu

Source: Ars Technica

Microsoft's Paul Nicholas Visits Slovakia
Coming soon, according to internal Microsoft sources: two fewer white dots on this promotional card. We can report that multiple sources within Microsoft have been briefed on plans to make a long-awaited change to the Xbox Live Gold paywall for streaming media services. According to our sources, Xbox 360 and Xbox One users will soon no longer need a paid subscription to Xbox Live Gold to access Netflix, Hulu, and other streaming media apps. ...
Source: Ars Technica   Full article at: Ars Technica May 12 2014, 6:10pm CDT

Shopping Deals


<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.




blog comments powered by Disqus

Latest stories

iPhone 6 Will Feature Dynamic Haptic Feedback Technology
iPhone 6 Will Feature Dynamic Haptic Feedback Technology
Every touch is now going to get a vibration in your next gen iPhone
Apple Starts Receiving New Processors For iPhone 6 From TSMC
Apple Starts Receiving New Processors For iPhone 6 From TSMC
Apple no longer dependent upon Samsung
Merkel To U.S. Intelligence Station Chief: &quot;Auf wiedersehen&quot;
Merkel To U.S. Intelligence Station Chief: "Auf wiedersehen"
A second double agent in the German ministry forced German Chancellor Angela Merkel to kick out U.S. intelligence station chief from the embassy.