January 2016
Intermediate to advanced
480 pages
132h 28m
English
Zynga had a disappointing fiscal 2014 with revenues down 21 percent and net income falling from a $37 to a $226 million loss from 2013 to 2014. Zynga’s stock price fell over 20 percent from the day before earnings to the day after earnings were reported. The company’s income statement and balance sheet are provided in Exhibits 3 and 4. Notice in Exhibit 5 that Zynga’s profit margins are all negative versus its major rivals.
Zynga’s Income Statement (in millions of USD)
| Report Date | December 31, 2014 | December 31, 2013 |
|---|---|---|
| Revenues | $690 | $873 |
| Operating expenses | 935 | 939 |
| EBIT | (245) | (66) |
| Interest income | 3 | 4 |
| Other income | 8 | (3) |
| EBT | (233) | (65) |
| Tax benefit | 7 | 28 |
| Net income | (226) | (37) |
Source: Based on Zynga’s 2014 Annual ...
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