Zynga Announced 3Q13 Earnings

Zynga (NASDAQ: ZNGA) announced their financial results for the quarter ending September 30th.Zynga reported 3Q13 revenue of $203M (down 36% YoY) and bookings of $152M (down 40% YoY). The quarter's net loss is $68,000 and adjusted EBITDA of $7M. 3Q13 GAAP EPS is $0.00 and non-GAAP EPS of $0.02.The company launched new titles this quarter including Fairy Tale Twist, Ninja Kingdom, and Hit it Rich on web platforms. For mobile platforms, Zynga launched 1 Word and CastleVille Legends. The company also launched a New Scramble with Friends, Baseball Slam (3P), and CityVille KRE-O. Online game revenue was reported at $174M, 39% less than 3Q12 and 14% less than 2Q13. Advertising revenue was $28 million, 9% less than 3Q12 and 3% less than 2Q13. “FarmVille 2, ZyngaPoker, and FarmVille accounted for 22%, 19% and 18% of online game revenue, respectively, for the third quarter of 2013 compared to 15%, 20% and 16%, respectively, for the second quarter of 2013.”4Q13 outlook projects revenue within $175-$185M and a net loss within $21M-$31M. Bookings are projected within $130-$140M and adjusted EBITDA is expected to be within $15-$25M. Non-GAAP EPS is projected to be in the range of $0.04-$0.05, based on a share count of approximately 812M- 822M shares.CEO Don Mattrick commented, “Our teams are working hard to compete more aggressively on the web, move to mobile and develop new hits, and I am happy with the early progress we have made. I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profits."