Zynga’s Revenue Climbs to $306.8M in Third Quarter as Daily Actives Decline
Zynga said it earned $12.5 million in net income on $306.8 million in revenue in the third quarter, according to another amendment to Zynga‘s IPO filing. On a year-over-year basis, revenue rose by 79.8 percent while net income declined by 53.9 percent. On a quarter-over-quarter basis, revenue is up 9.9 percent.
Zynga’s number of daily active users slipped for a second consecutive quarter to 54 million from 59 million, which the company attributed “to a decline in players of our more mature games and a limited number of new game launches in the first nine months of 2011.”
The amendment sheds more light on how game releases set against the decline of maturing games can impact net revenue on a quarterly basis. In spite of the active usage declines, Zynga was able to raise average bookings per user, or the average amount of virtual currency or goods purchases a user makes on a daily basis, to $0.058 from $0.051 in the previous quarter.
Here we see Zynga’s overall traffic for Q3.
During the last quarter, Zynga launched both Adventure World and Words With Friends for Facebook. According to our AppData traffic tracking service, the former peaked at 39 million monthly active users and 5.2 million daily active users within the first month and then went into a steady decline. (This was slightly exaggerated by Facebook’s decision to recalculate active usage in a different way this quarter.) As for Words With Friends, the title continues to show growth across MAU and DAU with current totals of 11 million and 4.4 million respectively.
With third quarter bookings up overall, it’s easy to see that even though Zynga lost users, the ones that remain likely monetize at a higher rate. Zynga’s fourth quarter game launches include Mafia Wars 2, which came out last month, and the upcoming CastleVille.
On the mobile front, Zynga reported that it was able to grow daily active usage by more than tenfold to 9.9 million through the third quarter on iOS and Android. More on that on our sister site, Inside Mobile Apps.
November 6th, 2011 at 11:40 am
[...] Zynga’s Revenue Climbs to $306.8M in Third Quarter as Daily Actives Decline [...]
November 8th, 2011 at 7:03 am
As a game gets older, casual players drop off while the more dedicated players remain. These dedicated players are the same ones most likely to pay into the game. Increasing monetization rates makes sense for long held titles, but bear in mind, that it is over a smaller user base.
The same holds true for the story on RockYou’s increase in monetization. The users who stay around really care about the game and are more likely than the average person to pay into it.
November 23rd, 2011 at 8:53 am
[...] Words With Friends [...]
December 14th, 2011 at 9:24 am
[...] Words With Friends [...]
December 15th, 2011 at 2:27 pm
[...] company made $30.7 million in net income on $828.9 million in revenue through the third quarter of this year. That’s up from $401.7 million in revenue during the same time a year [...]
December 16th, 2011 at 8:23 am
[...] revenue model. Zynga made $30.7 million in net income on $828.9 million in revenue through the third quarter of this year, up from $401.7 million in revenue during the same time a year [...]
April 24th, 2012 at 12:23 pm
[...] As to why Zynga makes up slightly less than what it used to of Facebook revenues, there are some obvious explanations. For starters, Zynga doesn’t have a CityVille-sized blockbuster release lined up for the quarter compared to the start of 2011. Another factor may be that the developer is spacing out game releases by quarter. Recall that Zynga didn’t release any new games after CityVille until the summer and despite releasing several games between Q2 and Q3, daily active users sagged. [...]