rubbish. learn nothing.
Zynga reported a net loss of $47 million. Similar losses were reported during the previous three quarters. The company lost nearly $226 million for the year compared with a total loss in 2013 of nearly $37 million. Management believes that 2014 was a big year for the company as the team became more disciplined and productive. Zynga also managed to increase mobile bookings to 60 percent of total bookings mix. The monthly mobile audience grew up 87% year over year. During the fourth quarter 2014 Zynga’s revenues were registered at $192 million.
The company is also closing the Zynga China studio. 71 employees in the Beijing will be laid off. This will save about $7 million dollars per year.
2015 will become a crucial year for the company. Zynga will focus on three priorities: mobile growth, launching more products in more evergreen categories and building the company’s social legacy. There will be more mobile games, including a huge amount for new games in Match 3 and Action Strategy categories. Zynga still has a lot of money ($1.1 billion in cash) so there’s hope that it will be able to make some wise investments and come up with cool new games.
Zynga’s stock sank 10% after the latest financial report was announced.
CEO Don Mattrick highlighted a couple of biggest mistakes the company made to lose a sizable share of profits.
There are a number of things we could have done better this past year.
First we had a challenging time implementing our new poker product. And we learned the tough lesson that we needed more adequate testing across consumer segments, geographies and devices. Second, we have big aspirations for our sports brand and view our NFL and Tiger Woods licences as incredible assets. We moved quickly to release NFL showdown to hit the season kick-off but by doing so launched an experience with less features than is typical for a worldwide launch. We believe in the potential of sports and our ambition for the category is bigger than our first product is showing out of the gate.
Finally, as a company, we are committed to managing the performance of our products and related cost structure. Local products from Zynga China, including the launch of FarmVillage at the end of Q4, have underperformed and not met our expectations. As a result, we are narrowing our international footprint and have decided to close our operations in China.
Don Mattrick, CEO Zynga.