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Zynga Lowers Outlook for Full Year 2012

October 4, 2012

Zynga Inc. (Nasdaq:ZNGA), the world's leading provider of social game services, today announced certain preliminary financial results for its third quarter ended September 30, 2012.

Zynga expects to report revenue in the range of $300 million to $305 million and bookings in the range of $250 million to $255 million for the third quarter ended September 30, 2012. Zynga expects to report a net loss of between $90 million and $105 million, non-GAAP net loss between $2 million and $5 million and adjusted EBITDA between $10 million and $15 million for the third quarter. In addition, Zynga expects to report diluted EPS between ($0.12) and ($0.14) and non-GAAP EPS between $0.00 and ($0.01) for the third quarter. Preliminary third quarter results primarily reflect weakness of certain games in our web "invest and express" category, and include an estimated impairment charge between $85 million and $95 million (excluding any income tax impact) related to the intangible assets previously acquired in connection with the company's purchase of OMGPOP.

Zynga is also lowering its outlook for full year 2012 to reflect preliminary third quarter results and revised expectations for the remainder of 2012. The change in outlook is primarily due to reduced expectations for certain web games including The Ville, and delays in launching several new games.

The company's updated outlook for full year 2012 includes:

Bookings projected to be in the range of $1.085 billion to $1.100 billion (compared to previous expectations of between $1.150 billion to $1.225 billion).

 

Adjusted EBITDA projected to be in the range of $147 million to $162 million (compared to previous expectations of between $180 million to $250 million).



Source: Copyright PrimeNewswire 2012


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