On the stock market since 2011, it operates in the world of technology. It has 2,952 employees. Now — the numbers.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Revenue is spread across several lines; no single product carries the company.
Average growth of 34% a year over the last 4 years. Red columns mark years that ended in a loss.
Before the clock runs out, either sales must climb sharply or new money must come in. For now, time is on the company’s side.
The stock trades 33% below its peak. The market has trimmed its expectations for the company.
Over the last 3 years, sales grew about 46% a year on average.
The company sells $2.8B a year; the problem isn’t sales — it’s costs running above that number.
The average analyst price target is $10.74 — 31% above today’s price.
A loss of $104.2M against $2.8B in annual sales.
Since the drop from its peak, buyer appetite hasn’t come back.
On our five-subject report card, ZNGA sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: ZNGA has solid sales but closed last year at a loss. The road back to profit runs through spending discipline.