For the second quarter, average daily active users (DAU) totaled 21 million, down 23% year over year and down 15% sequentially. Average monthly active users (MAU) totaled 83 million, down 32% year over year and down 18% sequentially.
The company gave guidance for the third quarter: Zynga expects a net loss per share of $0.02 to $0.01 along with revenues in the range of $175 million to $190 million. There are consensus estimates of no earnings in the third quarter on revenues of $174.84 million.
A few of the main financial highlights from the report were:
- Bookings of $174.5 million.
- Mobile bookings now represent 66% of overall bookings at $115 million, up 30% year over year.
- Advertising bookings, excluding licensing and developer payments, up 44% year over year.
- Implemented $100 million cost reduction plan.
The company announced that Frank Gibeau, former Executive Vice President at Electronic Arts, joined the Zynga’s board of directors. Gibeau is an entertainment and gaming industry veteran who has spent nearly 25 years developing and publishing mainstream mobile, PC and console gaming franchises.
Mark Pincus, CEO and Chairman of Zynga, commented on earnings:
Our teams have been executing well and delivered strong second quarter results while also making significant progress against our best growth opportunities. In terms of our core franchises — FarmVille, Slots, Poker and Words With Friends — we beat our expectations and the teams did a good job delivering value for our players. We also launched Empires & Allies and FarmVille: Harvest Swap in second quarter, and are excited for the upcoming launches of Dawn of Titans, CSR2 and our new Slots game later this year. In terms of our people, we’ve made progress in moving to smaller game teams. We believe this will allow them to be more nimble, creative and innovative. We’re also continuing to add talent and leadership with our appointment today of Frank Gibeau, one of the top strategists in mobile gaming, to our Board of Directors.
At the end of the quarter, cash, cash equivalents and marketable securities totaled $1.10 billion, compared to $1.10 billion at the end of March 2015. Cash flow from operations was $4 million for the second quarter.
Shares of Zynga closed Thursday down 1.2% at $2.48 on its 52-week trading range of $2.20 to $3.19. Following the release of the earnings report, shares were down 1.6% at $2.41 in the after-hours trading session. The stock has a consensus analyst price target of $3.24.
ALSO READ: The 10 Jobs With the Best Job Security
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
