Online game maker Zynga posts Q4 net loss of $47 million
Zynga, the creator of online games, announced its fourth quarter results on Wednesday and also its plan to launch fresh games in 2016. The company shares slip following poor billings forecast.
The online games developer posted a net loss of $47 million in the fourth quarter ended December 31, 2015, compared to a net loss of $45 million in the comparable period last year. Loss per share for the quarter amounted to $0.05, compared to a loss of $0.05 in the prior year period.
On a non-GAAP basis, the company reported a net income of $375K, or breakeven per share for the fourth quarter, compared to a net loss of $2.45 million, or breakeven per share in the previous year period. Quarterly non-GAAP bookings totaled $182.10 million, compared to $182.35 million in the year-ago period.
Revenue declined 4% to $185.77 million from $192.55 million in the same period last year. The company's online game revenue amounted to $130 million in the fourth quarter, down 4% from last year period. Revenues from advertising and other sources totaled $56 million, down 2% from the same quarter in 2014.
Looking ahead, the company expects the first quarter net loss to be between $40 million and $30 million and loss per share between $0.05 and $0.03 that is based on a stake count anticipated to be about 866 million stakes. Meanwhile, first-quarter revenue is expected between $160 million and $175 million.
Zynga projects bookings between $150 million and $165 million for the first quarter. The company also noted that it expects to introduce ten new games in the year 2016. In addition, Zynga announced its purchase of Zindagi Games in the first quarter of 2016.
VentureBeat said that the game-maker paid nearly $15 million as an upfront payment for the Zindagi acquisition. Zynga requires more games to be developed in future to meet the growing challenges.
For the year 2015, the company's net loss narrowed to $117.2 million or $0.13 per share from a net loss of $225.9 million or $0.26 per share in 2014. The annual non-GAAP net loss also narrowed to $10.23 million from $12.6 million in the previous year. On a per share basis, non-GAAP loss remained flat at $0.01.
Revenue in the year 2105 increased 11% to $764.72 million from $690.41 million in the prior year. Revenue from online games was $591 million, up 10% over last year. Bookings amounted to $699.95 million in 2015, compared to $694.3 million in 2014.
According to USA TODAY, the shares of the company traded at $1.94, down 9% during the Wednesday after-hours trading session. Zynga's stocks closed the trading session at $2.13. The shares have dropped 16% since the previous three-month period.
Zynga expects the revenues from new games to boost its financial stability and growth. The company is currently working hard to preserve its users and expects to report better earnings in the future. The game developer expects to unveil FarmVille 2 sequel in the final half of 2016.