Zynga quarterly sales slide 34%
Social publisher posts $62.5 million loss, lowers outlook; Mattrick says "we aspire to do better"
Zynga today reported results for the quarter ended June 30, revealing declining revenues and deepening losses. In the process, the company also lowered its outlook for the full year.
For the second quarter, Zynga posted revenues of $153.2 million, down 34 percent year-over-year. The company also saw a net loss of $62.5 million, compared to the previous second quarter's loss of $15.8 million. On a non-GAAP basis, Zynga reported bookings down almost 7 percent to $175.1 million, with a non-GAAP net income of $2.8 million, as opposed to the $6.1 million non-GAAP net loss it reported for last year's second quarter.
"While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business," Zynga CEO Don Mattrick said. "Inside Zynga, we recognize that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale. We are purposefully competing, and while we would like to be further along, we believe we are making the right decisions to grow our business and unlock long term shareholder value."
The results convinced Zynga to downgrade its outlook for the full year, as it now projects bookings of $695-$725 million, down from $770-$810 million. Meanwhile, Zynga expects its full-year non-GAAP earnings per share to be flat to down a penny, compared to the previous guidance of up one to three cents.
On the plus side, Zynga's daily active users, monthly active users, monthly unique payers, and monthly unique users were all up quarter-over-quarter. However, all of those metrics were down significantly year-over-year.
Zynga shares were down nearly 8 percent as of this writing to $2.69 in after-hours trading.
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