Zynga (ZNGA) Reports Break-Even Q4 Loss, Flat with Views; Will Enter Action Strategy Category

Zynga (NASDAQ: ZNGA) reported Q4 EPS of $0.00, in-line with the analyst estimate of $0.00. Revenue for the quarter came in at $192.5 million versus the consensus estimate of $201.11 million.

Zynga Enters Into the Mobile Action Strategy Category

Today, Zynga announced it is entering the mobile Action Strategy category with two new titles currently in development across NaturalMotion and Zynga.

Starting with NaturalMotion, today Zynga detailed the upcoming mobile release of Dawn of Titans. The first new game in NaturalMotion's 2015 product pipeline, Dawn of Titans is set in a beautiful world where players command armies of thousands, train titans and lead their alliance to victory. The game leverages NaturalMotion's proprietary mobile technology and engine to create unprecedented mobile visuals, animation and depth-of-gameplay that supersedes anything found today on mobile. Dawn of Titans will enter its first of many geo-lock phases in the coming weeks and is expected to launch globally in 2015.

Next, Zynga is readying the mobile launch of a modern military strategy game, Empires & Allies. The game allows players to take control of the weapons of modern war – tanks, helicopters and warplanes – and deploy the military technology of tomorrow. Empires & Allies is currently in geo-lock in Canada, Australia, New Zealand and India and is slated to launch worldwide in the coming months.

Expands FarmVille Franchise Into Match 3 Category

Zynga also announced today that it is bringing its blockbuster FarmVille brand – which to date has reached nearly 700 million lifetime installs since 2009 – to the Match 3 category with a new title called FarmVille: Harvest Swap. The game marries the fiction of FarmVille with 3D graphics, a progression map and immersive challenges that add new strategic depth to the Match 3 category. FarmVille: Harvest Swap entered geo-lock testing across Canada, Australia and the Philippines and will launch worldwide as a cross-platform mobile and web game in 2015.

Announces Zynga China Studio Closure

Today, Zynga announced the closure of its Zynga China studio. The closure will affect all 71 employees in the Beijing-based studio, and will result in an annualized cost savings of $7 million dollars.

Fourth Quarter Operational Metrics

• Average daily bookings per average DAU (ABPU) increased from $0.060 in the fourth quarter of 2013 to $0.079 in the fourth quarter of 2014, up 31% year over year. On a consecutive quarter basis, ABPU was up 8% from $0.073 in the third quarter of 2014.
• Monthly Unique Payers (MUPs) in the fourth quarter of 2014 were 1.1 million, compared to 1.3 million in the fourth quarter of 2013. On a consecutive quarter basis, MUPs were down 16% from 1.3 million in the third quarter of 2014.
• Daily active users (DAUs) in the fourth quarter of 2014 were 25 million, compared to 27 million in the fourth quarter of 2013. On a consecutive quarter basis, DAUs were down 4% from 26 million in the third quarter of 2014. Web DAUs and Mobile DAUs were 6 million and 19 million in the fourth quarter of 2014, respectively.
• Monthly active users (MAUs) in the fourth quarter of 2014 were 108 million, compared to 112 million in the fourth quarter of 2013. On a consecutive quarter basis, MAUs were down 3% from 112 million in the third quarter of 2014. Web MAUs and Mobile MAUs were 28 million and 80 million in the fourth quarter of 2014, respectively.
• Monthly unique users (MUUs) in the fourth quarter of 2014 were 71 million, compared to 80 million in the fourth quarter of 2013. On a consecutive quarter basis, MUUs were down 7% from 77 million in the third quarter of 2014.

Zynga sees Q1 2015 EPS of ($0.03)-($0.02), versus the consensus of $0.00. Zynga sees Q1 2015 revenue of $155-165 million, versus the consensus of $200.9 million.

For earnings history and earnings-related data on Zynga (ZNGA) click here.

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