On Thursday, Zynga released its third quarter results and showed a loss of only $68,000—far better than the embattled gaming company’s losses of $52 million this time last year. And, because that loss was small, beating Zynga’s own expectations for Q3, its shares got a 12 percent boost in after-hours trading on Wall Street, Thursday evening. Still, that modicum of good news is just a sugar coat on an otherwise dismal earnings statement. Zynga’s Q3 revenue was only $203 million, which constitutes a decrease of 36 percent year-over-year, and a decrease of 12 percent from the quarter before. Also, Daily and Monthly Active Users were both down for Zynga. The company lost almost a quarter of its Daily Active Users compared to Q2 2013 (and that statistic is becoming a bit of a trend: we saw that exact headline on last quarter’s earnings report, too). And Zynga lost nearly 30 percent of its Monthly Active Users from Q2 2013. From Q3 2012, the statistics were down 49 percent and 57 percent, respectively. But it looks like Zynga will be progressing conservatively from here. For the fourth quarter of 2013, the company projected revenue in the range of $175 million to $185 million (a substantial decrease from this quarter’s earnings) and a net loss in the range of $31 million to $21 million. After a summer in which the company laid off 18 percent of its workforce and shuttered Omgpop , a games company it acquired for $200 million, Zynga’s next few months will be watched carefully to see how (and whether) the company will weather 2014. Read on Ars Technica | Comments
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Zynga almost breaks even in Q3, but user base still contracts
