Earnings Recap Part 3: Twitter, Zynga and Pandora

This is our final earnings recap for Q4 2015.

Last week, we reported on Amazon, eBay, Facebook and EA and also on Alphabet (Google), Microsoft and Yahoo. We’ve compiled the coverage coming out of the calls and given you the official “Verto view,” complete with data and insights. And, we report how each of these companies rank on the Verto Stickiness Index. The higher the stickiness ranking, the more users come back and use the services on a monthly basis.

*TWITTER: Shares in steep decline

Key coverage:

Verto data:
  • Twitter, Inc.’s net reach in the US is 73% (180.4M users) — across all devices (all owned apps, websites and traffic from both PC and mobile devices)
  • Twitter’s mobile user reach in the US is 60% (106.6M)
  • Much of Twitter’s traffic comes from third-party websites and apps (e.g. tweeting from inside another website). There are 122.4M users a month who use Twitter in that way
  • The Twitter flagship website and app attracts 100.7M users (net reach 41%). These are the users who visit the twitter.com website or use the mobile app
  • Vine is Twitter, Inc.’s second most popular property with 36.4M monthly users (net reach 15%) while Periscope comes in third with 4.8M monthly users (net reach 2%)
  • Twitter fails to engage users for longer periods compared to other social networking services
  • Twitter users spend, on average, less than 1 hour per month using the app or site
  • On average, a Periscope user spends 2.5 hours per month using the app
  •  Twitter’s Stickiness Index ranking is 20%

Verto view:

While Twitter is still a major social media player, our metrics show that they have not been able to turn mere followers into active contributors. External traffic is a more significant contributor compared to the unique users on the flagship property. And in today’s world, engagement drives monetization opportunities. It is also worth noting that Twitter has not had the capital, like Facebook or Google, to acquire hit properties and apps. Periscope is still far from Instagram and YouTube.

*ZYNGA: Beats estimates and but gets crushed by investors

Key coverage:

Verto data:
  • Zynga is the second largest publisher of mobile games (after King) with a monthly reach of 12% (20.4M users); King’s reach is 23% (39.7M users); and EA is a close third with a reach of 11% (20.3M users)
  • Zynga owes its position almost entirely to Words With Friends which has a monthly mobile reach of 8.5% (15M users)
  • Words with Friends manages to engage players for relatively long times – nearly 5.5 hours per month, compared to Candy Crush Saga (7 hours per month) or Simcity Buildit (5 hours per month)
  • Zynga’s games enjoy the highest frequency of use as compared to other big game publishers. Users play games such as FarmVille 2: Country Escape and Zynga Poker – Texas Holdem more than 130 times a month. The next most frequently played game is SCRABBLE from EA, with users playing around 90 times a month
  • The average session duration of Zynga’s games is 4.6 minutes which is lower than King’s games (9.5 minutes) and EA’s (7.8 minutes), but higher than Supercell’s 3 minutes per session.
  • Zynga’s Stickiness Index ranking is 40%

Verto view:

Zynga started as a social gaming platform, and now they have made a strong push into mobile. They rank higher than Electronic Arts and Supercell in terms of their total mobile audience. 21M adults in the U.S. play Zynga games any single month with their mobiles. Words with Friends is their top game and has an average of 5.5 hours of playing time per user per month. Zynga could improve its user engagement which would have a direct effect on ad revenues and open up opportunities to monetize further via in-app purchasing. 

*PANDORA: Up for Sale?

Key coverage:

Verto data:
  • Pandora Media’s net reach is 21.8% (53.9M users) which makes it the leading music publisher in the US. Spotify comes in second with a net reach of 21.0% (51.9M users)
  • Pandora’s mobile reach is 27.1% (47.8M users). Spotify’s is 15.8% (27.9M users), and TuneIn’s is 2.1% (3.7M)
  • Pandora’s mobile app has the highest engagement levels with the average user spending 3 hours per month interacting** with the app. Spotify’s average user spends 1.2 hours a month
  • Pandora’s mobile app average session duration is also significantly higher than its competitors with the average session duration lasting for 6.3 minutes compared to Spotify’s 1.3 minutes **
  • Pandora’s frequency of use remains lower than Spotify’s. The average Pandora user is using the service 28 times per month while Spotify users use the service 43 times per month.
  • Pandora’s Stickiness Index ranking is 20%
** The time reported reflects when the user is using the app on screen and does not include the time when he or she user is using the app in the background.
Verto view:

Pandora has a long background in streaming media and is definitely the music equivalent of Netflix. It is notable, how mobile-centric they are today versus Spotify, their biggest competitor. Pandora has 48M mobile users per month, vs. Spotify at 28M users. Both are growing, though Spotify has been growing faster in the US lately. There are still different use cases for these services. Pandora is launched less frequently, and it is used on the foreground more – meaning that people e.g. change channels and explore music. On the other hand, Spotify has a higher number of sessions per month, but people do not spend so much time with the app/service on the foreground. 
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