Boston, MA 02/03/2014 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA) cut down its losses in the fourth quarter of FY’2013, a clear indication that the company is slowly picking up. Its revenues beat Zacks consensus estimates of $143 million coming in at $176 million. Major portion of its revenues came from US markets which contributed 58% to the revenues. The stock has reacted positively to numbers.
ZYNGA in numbers
ZYNGA saw its net loss narrowing for the quarter to $25 million compared to $49 million for the same quarter a year ago. Its online gaming portfolio which contributes 86.4% to its revenues saw a dip as it plummeted to 44.5% Yoy. ZYNGA saw its bookings for the fourth quarter drop by 43.9% compared to the same quarter a year ago to a low of $147million although it was an improvement to the guided range of $130-$140 million. Positive news from this sector revolved around bookings per average daily active users increasing by 19%. Web bookings were the highly hit in the fourth quarter slumping from a high of 207million the same quarter a year ago to a low of $96 million
ZYNGA Cost reduction plans
ZYNGA plans to engage in cost reduction plans especially in its workforce sectors, this will involve the slashing of 15% of its workforce in the effort of reducing its wage bill. This plan is expected to generate savings inrevenue totaling $33-$35 million annually. The company also intends to engage in restructuring plans in Q1 F2014 that it expects to save up to $15-$17 million on pre-tax. The cost reduction plans will also involve the lowering of spending on data center infrastructure
Zynga acquires leading mobile developer Natural Motion
ZYNGA on positive news has announced the acquisition of NaturalMotion for $527 million in cash and equity, a move it intends to use to boost its revenue in mobile gaming. The deal involves ZYNGA paying an upfront of $391 million in cash while making up for the rest with 39.8 million in ZYNGA shares. NaturalMotion employees who will be joining ZYNGA will be allocated 11.6 million shares as part of the deal .ZYNGA CEO Don Mattick was quick to point out that the acquisition of NaturalMotion will enable ZYNGA expand its creative pipeline of mobile growth.
