Yesterday, Zynga—a social game developer—announced first time its quarterly earnings report as a pubic company. The company claimed that it had grown 15 million daily active users in December 2011. Among total daily active users, 2 million active mobile users were increased in December last year alone, while 5 million users had joined during the entire year of 2011. The company stated that they had 9.9 million daily active users for its mobile game in Q3 last year.
The last year was definitely outstanding for Zynga. The company’s three Games—Dream Zoo, Words with Friends, and Zynga Pocker—were among the best 10 grossing games on the iOS platform during Q4 last year. The company had launched five mobile games in Q4 last year, which includes Mafia Wars and ForestVille. In this way, Zynga launched eight mobiles games throughout the last year—Zynga mobile apps were averagely rated by 4.5 points out of 5 points in Apple apps store.
Zynga has beaten all the estimations in the Q4 last year, and has reportedly marked revenue of $311.2 million in Q4 of 2011, up by 59% compared to Q4 of 2010. However, Non-GAAP EPS of the company decreased to $0.05 in Q4 from $0.09 in Q4 of 2010. The company got net loss of $435 million in Q4 last year in terms of income, which included the expense of the stock-based compensation of $510 million. In contrary, the company’s Non-GAAP measures have broken a record—reached to $306.5 million—in Q4 2011, an increase of 26% compare to the same quarter a year ago. The online game revenue of the company reached to $283.9 million in Q4 last year which had increased by 51% than same quarter a year ago, whereas, ads revenue marked $27.3 million in Q4 2011—which had unprecedentedly grown by 230% than Q4 of 2010. However, non-GAAP’s net income decreased by 24% year-over-year from 2010 to $182.5 million in 2011 due to huge investment in new game development.
CEO and Founder of Zynga—Mark Pincus—said, “2011 was another milestone year for Zynga’s mission of connecting the world through games. We are seeing social games and more broadly play become one of the most popular pastimes on web and mobile. Zynga set new records in the year in terms of audience size, revenues and bookings. We saw great momentum in mobile and advertising and ended the year with a strong pipeline of new games. We are excited about the opportunities in front of us to continue delighting our current players and to bring play to millions of new people.”
Daily active users of Zynga were increased by 13% to 54 million in Q4 of 2011from the same quarter a year ago according to traffic and users statistics. The monthly users of the company also increased to 240 million in Q4 of 2011, up by 23% from 195 million in the same quarter a year ago. The company also said that it made total revenue of $1.14 billion in 2011, an increase of 91% year-over-year—online game revenue was $1.07 billion (85% increase year-over-year) and ads revenue was $74.5 million (226% increase year-over-year).
Anyway, Zynga has proven itself in the game segment last year—company’s three games were in top 10 grossing categories on iOS platform. The company’s Q4 report is highly satisfactorily, however, its Non-GAAP net income has decreased by 24% year-over-year—the company has invested more to develop better game lineups.
