Zynga reports Q3 2012 with $317 million in revenue, declines in users from Q2 2012

Zynga is reporting it made $317 million in revenue and $256 million in bookings for Q3 2012. For revenue, that's up by 3 percent for both year-on-year, but down in bookings about 11 percent. Bookings dropped by 15 percent and revenue by 4.7 percent, down dramatically from Q2 2012. The company's also reporting a net income loss of $52.7 million for Q3 2012, compared to the net income of $12.5 million it saw during Q3 2011. This loss includes the $95.5 million impairment charge (the new way of writing off worthless goodwill) of $95.5 million in intangible assets taken on during the acquisition of OMGPOP. Net loss for Q3 2012 also included $37.8 million of stock-based expense, up 67 percent from Q3 2011. Looking at the company's detailed financial results reveals Zynga's spent $12.5 million in cash over the past three months on business acquisitions. That means this quarter's acquisition cost Zynga approximately $12.5 million up front when it acquired A Bit Lucky in mid-September; we're hearing from industry sources that the deal's total value was $25 million, so it sounds like an equal value of stock was a part of the purchase. Zynga still has plenty of cash, cash equivalents and marketable securities. As was the case with Q2 2012, the company says it has $1.6 billion on hand, up 72 percent year-on-year from Q3 2011. Cash flow from operations in Q3 2012 at $30.1 million, down from $47.5 million from Q3 2011. Once again, Zynga is lowering its 2012 guidance due to the performance this quarter. Last quarter, the company dropped its projected bookings to $1.15 billion to $1.225 billion from $1.425 billion to $1.5 billion. The new projected bookings are estimated to be between $1 billion to $1.1 billion. This means (so far) Zynga's looking to make up to $500 million less in bookings than it originally thought it would. Monthly active users are up year-on-year by 37 percent with 311 million compared to 228 million in Q3 of 2011 and up 2.3 percent from Q2 2012's 304 million MAU. Daily active users are up 10 percent at 60 million from 54 million from this same quarter last year, but down 16 percent from Q2 2012's 72 million and down 3.3 percent from Q1 2012′s 62 million. Meanwhile, monthly unique users are up 27 percent year-on-year from 151 million to 192 million, up 5 percent from Q1′s 182 million. Monthly unique users are up 17 percent year-on-year from 151 million to 177 million; this is down 7.8 percent from Q2 2012 and 2.7 percent from Q1 2012. Monthly unique paying players were down from 4.1 million in Q2 2012 to 3 million in Q3 2012. This last quarter, Zynga released three major social games: The Ville, ChefVille and FarmVille 2. The Ville technically launched at the end of June, which was still a part of Q2 2012, but it didn't start getting any serious traffic until July, which means it wasn't really making money for Zynga until Q3 2012. FarmVille 2 is the largest of these games, with record traffic in terms of daily active users and is currently sitting at 61.3 million monthly active users and 9.1 million daily active users. ChefVille has 28.2 million MAU and 4.1 million DAU. The Ville spawned a lawsuit from Electronic Arts, lost dramatic amounts of traffic since its launch and currently has 17.1 million MAU and 1.5 million DAU. Zynga also announced nine new partnerships to publish social games in September on both Facebook and Zynga.com. Developing.

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Zynga reports Q3 2012 with $317 million in revenue, declines in users from Q2 2012

Mike Thompson

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