December 26, 2014 8:19 AM ET

Software

Company Overview of Zynga, Inc.

Company Overview

Zynga Inc. develops, markets, and operates online social games as live services played on the Internet, social networking sites, and mobile platforms in the United States and internationally. The company offers online social games primarily under the FarmVille, Words With Friends, and Zynga Poker franchises. Its games are accessible on Facebook and Zynga.com. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

699 Eighth Street

San Francisco, CA 94103

United States

Founded in 2007

2,034 Employees

Phone:

855-449-9642

Key Executives for Zynga, Inc.

Chief Executive Officer
Age: 50
Total Annual Compensation: $6.5M
Founder
Age: 48
Total Annual Compensation: $75.0K
Chief Operating Officer
Total Annual Compensation: $1.1M
President of Games
Total Annual Compensation: $500.0K
Chief Revenue Officer
Age: 53
Total Annual Compensation: $2.8M
Compensation as of Fiscal Year 2013.

Zynga, Inc. Key Developments

Court in Delaware Denies a Motion to Dismiss Lawsuit Against Zynga Inc.'s Chairman Mark Pincus and Certain Current and Former Directors

A court in Delaware denied a motion to dismiss a lawsuit against Zynga Inc.'s Chairman Mark Pincus and certain current and former directors over stock sales following the company's IPO in 2011. Wendy Lee, a former Zynga product manager, previously filed a complaint in Delaware Chancery Court that Zynga's board breached fiduciary duties when it permitted four Zynga directors to sell a portion of their holdings almost two months before other pre-IPO stockholders, bypassing post-IPO lockup restrictions. Meanwhile, the court dismissed Lee's claims that Morgan Stanley & Co. LLC and Goldman Sachs & Co., which served as lead underwriters in the Zynga IPO, aided in and profited from the board's breach of duties.

Zynga, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months September 30, 2014; Announces Operating Results for the Third Quarter Ended September 30, 2014; Provides Earnings Guidance for the Fourth Quarter the Full Year of 2014

Zynga, Inc. announced unaudited consolidated earnings results for the third quarter and nine months September 30, 2014. For the quarter, the company reported total revenue of $176,611,000 against $202,580,000 a year ago. Loss from operations was $59,329,000 against $2,853,000 a year ago. Loss before income taxes was $57,841,000 against $959,000 a year ago. Net loss was $57,058,000 against $68,000 a year ago. Basic and diluted net loss per share was $0.06. Net cash used in operating activities was $2,416,000 against $4,858,000 a year ago. Acquisition of property and equipment was $2,429,000 against $1,054,000 a year ago. Adjusted EBITDA was $2,163,000 against $6,901,000 a year ago. Non-GAAP net loss was $6,681,000 against $16,215,000 a year ago. Diluted non-GAAP net loss per share was $0.01 against $0.02 a year ago. For the nine months, the company reported total revenue of $497,863,000 against $696,904,000 a year ago. Loss from operations was $195,803,000 against $38,154,000 a year ago. Loss before income taxes was $190,648,000 against $39,386,000 a year ago. Net loss was $180,774,000 against $11,740,000 a year ago. Basic and diluted net loss per share was $0.21 against $0.01 a year ago. Net cash flow used in operating activities was $8,856,000 against cash flow from operating activities of $20,942,000 a year ago. Acquisition of property and equipment was $7,078,000 against $7,344,000 a year ago. Adjusted EBITDA was $30,500,000 against $43,946,000 a year ago. Non-GAAP net loss was $10,131,000 against $13,239,000 a year ago. Diluted non-GAAP net loss per share was $0.01 against $0.02 a year ago. For the fourth quarter of 2014, the company expects revenue to be in the range of $170 million to $200 million, net loss to be in the range of $51 million to $34 million, diluted net loss per share to be $0.06 to $0.04, adjusted EBITDA is projected to be in the range of $9 million to $29 million, non-GAAP loss per share is projected to be in the range of $0.01 to EPF of $0.01. Non-GAAP net loss is expected to be between $5 million to net income of $11 million. Depreciation and amortization is expected to be between $20 million. Capital expenditures is expected to be $3 million. For the full year of 2014, the company expects revenue to be in the range of $668 million to $698 million, net loss to be in the range of $231 million to $214 million, diluted net loss per share to be $0.26 to $0.24, adjusted EBITDA is projected to be in the range of $40 million to $60 million, non-GAAP loss per share is projected to be in the range of $0.02 to EPF of $0.00. Non-GAAP net loss is expected to be between $15 million to net income of $1 million. Depreciation and amortization is expected to be between $85 million. During third quarter of 2014, average daily bookings per average DAU (ABPU) increased from $0.055 in the third quarter of 2013 to $0.073 in the third quarter of 2014, up 34% year-over-year. On a consecutive quarter basis, ABPU was up 8% from $0.067 in the second quarter of 2014. Monthly Unique Payers (MUPs) in the third quarter of 2014 were 1.3 million, compared to 1.6 million in the third quarter of 2013. On a consecutive quarter basis, MUPs were down 19% from 1.7 million in the second quarter of 2014. Daily active users (DAUs) in the third quarter of 2014 were 26 million, compared to 30 million in the third quarter of 2013. On a consecutive quarter basis, DAUs were down 9% from 29 million in the second quarter of 2014. Web DAUs and Mobile DAUs were 8 million and 18 million in the third quarter of 2014, respectively. Monthly active users (MAUs) in the third quarter of 2014 were 112 million, compared to 133 million in the third quarter of 2013. On a consecutive quarter basis, MAUs were down 14% from 130 million in the second quarter of 2014. Web MAUs and Mobile MAUs were 38 million and 74 million in the third quarter of 2014, respectively. Monthly unique users (MUUs) in the third quarter of 2014 were 77 million, compared to 97 million in the third quarter of 2013. On a consecutive quarter basis, MUUs were down 13% from 89 million in the second quarter of 2014.

Zynga, Inc. to Report Q3, 2014 Results on Nov 06, 2014

Zynga, Inc. announced that they will report Q3, 2014 results at 5:00 PM, Eastern Standard Time on Nov 06, 2014

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