Boston, MA 08/08/2014 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA) reported its quarterly results on August 7, 2014 and fell to as low as 15% after it declared low-end results as compared to its forecast along with full-year outlook. This happened due to decision of delaying the launch of new games. The Q2 2014 results of company were reported to be at break-even, while it also revised the 2014 guidance. The shares dropped 7.5%. Zynga’s shares in the present year have taken a dip of 23%.
Delay in New Games
Zynga, which was said to be a leader of casual games, like Farmville, has put to bay some of the new launches such as Word with Friends and Poker. These games shall now be launched in the second half of the present year or even 2015 in order to work on more improvements as Zynga Inc (NASDAQ:ZNGA) steers the wheel of strategy towards more mobile plays from online. In the meanwhile, the company made announcement of the deals for games along with Warner Bros. Entertainment Inc. , NFL and Tiger Woods.
Financial Report Card: The Break-Even Explanation
Zynga Inc (NASDAQ:ZNGA) stood at a break-even point in the Q2 2014, in comparison with the forecast in April for break-even to profit of 1 cent per share. As far as the value of virtual products selling in the quarter (a.k.a. Bookings), was concerned, it dropped down 6.7% and totalled at $175.1 million in comparison to the forecast which ranged up from low end of the amount to $195 million.
In this context, the CEO of company, Don Mattrick said that the company was making a progress and that it was doing rigorous weight lifting in terms of investment. In a telephonic interview with Bloomberg, he added that it was important for the company to be disciplined, while at the same time, find accurate balance for shifting ideas.
Zynga Inc (NASDAQ:ZNGA)’s forecast sums up the 2014 Bookings in the range of $695 million to $725 million, dipping down from $810 million forecast of April 2014. The company, in the meanwhile, also anticipates that the profit or Adjusted Earnings before Taxes, Interest and Depreciation would sum up anywhere from $40 million to $60 million, again taking a sink from $100 million of before.
In terms of Earnings per Share or EPS, the full-year outlook was summed up in the range of loss of 1 cent to break-even in contrast with the earlier anticipation of gain of up to 3 cents.
