Zynga swings to profit in Q1

Social game company post $4.1 million profit on revenue of $263.6 million for three-month period ended March 31; daily active users fall 21 percent to 52 million.

FarmVille developer Zynga today announced financial results for its first quarter ended March 31, revealing a profit of $4.1 million on $263.6 million in revenue. This time last year, the company posted a net loss $85.4 million.

"We are encouraged by the strong execution from our teams and the breakout hit performance of FarmVille 2, which captures the imagination of nearly 40 million players every month," Zynga CEO Mark Pincus said in a statement.

"2013 will continue to be a transition year as we face the challenging environment on the web and invest in developing the leading franchises and network across web and mobile platforms and offer our 253 million monthly players a connected experience that can follow them from work to school to home and anywhere in between," he added.

Zynga may have swung to a profit during the quarter, but the company also reported players moving away from its games by the millions.

Daily active users for Zynga games totaled 52 million during the period, down 21 percent from last year's 65 million. Monthly active users were also down in the quarter, decreasing from 292 million to 253 million, a drop of 13 percent year-over-year. Monthly unique users decreased 18 percent year-over-year, from 182 million to 150 million.

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Discussion

32 comments
SpaceDr00ze
SpaceDr00ze

Zynga makes profit, THQ and 38 go bankrupt.

I'm in the dark timeline. 

grasshopper6
grasshopper6

active users are decreasing lol that's cause your F*&$ING games don't work half the time 

KimCheeWarriorX
KimCheeWarriorX

jeez, only 52 million? the lot of them better start applying for welfare.

Riddick123
Riddick123

Players have been moving away from its games by the millions?  You don't say?.......


blackothh
blackothh

1.5% profit...............impressive

PixelAddict
PixelAddict

Yikes!  Only $4 million profit on $263 million total revenue.

This is not profit nor success, people.  This is break even.

jhcho2
jhcho2

That's because that CEO decided to draw a $1 salary.

91210user
91210user

'profit', I use the term loosely!

saltbalsak
saltbalsak

4.1 mil profit on 263 mil rev is MINISCULE which is why their shares tanked AGAIN after the announcement. Their only hope for survival is legalized online poker in the U.S. which is their new direction if they can last long enough until that legislation is passed.

toshineon
toshineon

Profit? And here I was hoping for bankruptcy... oh well.

acelogan1989
acelogan1989

why people still playing farmville 2 if there is another good online games . *sigh*

soulless4now
soulless4now

I'm disappointed they even made that much. Should suffer some losses so they can go bankrupt already. 

Hurvl
Hurvl

I'm no economist, but only 4 million profit from 263 million revenue sounds really poor and adding to that they've lost 21 percent of their daily active users.

PETERAKO
PETERAKO

well if it isn't the ripoff company

demondogx
demondogx

well, positive thing is this might prevent further job cuts

But i really hate company's like zynga, cant remember how mutch my inbox got spammed by their garbage

nurnberg
nurnberg

When a developer makes profits, it is good news, but in the case of Zynga, that's bad news.

nathangray
nathangray

Eesh,  out of all that revenue they made a whole 1.5%-ish in profit. That's not 'encouraging', that's a death knell.

2bitSmOkEy
2bitSmOkEy

52 million daily active users.  That is mind boggling.

Sorciere_basic
Sorciere_basic

In other Zynga-caliber news: Wal-Mart now has organic Twinkies and Chad Kroeger is releasing a solo album.

advancedcaveman
advancedcaveman

Well at least we know mentally retarded people have learned to buy things.

Sam_021
Sam_021

I hate Zynga :D, they ruined Mafia Wars :(, I spent 2 years playing it :(

brxricano
brxricano

@saltbalsak Fair enough to say that the 4.1m is the salary the boss didnt take this you or they'd be seeing red in the books again.

Gallowhand
Gallowhand

@Hurvl Even so, Microsoft and Sony would both kill for 52 million daily active users.

Sefrix
Sefrix moderator

@2bitSmOkEy Not really. Have you been outside/on the internet recently? ;)

Sefrix
Sefrix moderator

@2bitSmOkEy Just implying that it'd be quite easy to get 52 million people to get into anything with enough marketing.