Zynga reports Q4 2013 results, announces NaturalMotion acquisition, layoffs
Mobile and social game developer and publisher Zynga has revealed its earnings for Q4 2013, with the company announcing a full year of profitability in 2013 and Q4 revenue of $176 million. This is a 43 percent decrease in revenue year-over-year and a 13 percent decrease from Q3 2013. Zynga’s full 2013 revenue was $873 million, a decrease of 32 percent from 2012.
In addition to its Q4 earnings, Zynga has announced its acquisition of mobile developer NaturalMotion. The company behind Clumsy Ninja and CSR Racing was acquired for $527 million in cash and equity. The company has 260 employees across offices in Oxford, London, Brighton and San Francisco.
For the first quarter of 2014, Zynga projects revenues of $155 to $165 million, while its expected bookings for 2014 are between $760 million and $810 million. These figures account for the NaturalMotion acquisition.
“We believe that bringing Zynga and NaturalMotion together is the right step at the right time,” said Zynga CEO Don Mattrick. “Our acquisition of NaturalMotion will allow us to significantly expand our creative pipeline, accelerate our mobile growth and bring next-generation technology and tools to Zynga that we believe will fast track our ability to deliver more hit games.
“Their creative portfolio aligns perfectly with our content strategy as Zynga will now have five top brands and capabilities in the Farm, Casino, Words, Racing and People categories. We are confident that we will build upon our market position with complementary strengths to generate long term value for our consumers, our employees and our shareholders.”
In addition, Zynga has announced it will layoff approximately 15 percent of its workforce, or 314 employees, as part of its cost-reduction strategy going forward.
“Over the last 7 months, our teams have been working with a sense of urgency. We finished 2013 in a strong position and expect 2014 to be a growth year,” added Mattrick. “We have an ambitious agenda and we are moving quickly to add capabilities that are complementary and strategic to our core growth plans.”