Zynga’s third quarter financials are in, showing a downturn in both revenue and bookings, but the social publisher has announced the appointment of a new high-level executive, which may calm investors.
For the quarter ending September 30, Zynga produced GAAP revenue of $202.5 million, down 36% year-on-year from $316.6 million in 2012.
In terms of bookings – a more accurate representation of virtual good spend within a given quarter – the decline was even sharper, producing $152 million, a 40% year-on-year decrease.
All in all, the quarter resulted in a net loss of $68,000 – which is actually a sensational improvement on the $52.7 million of the year before; the publisher has clearly been successful in its bid to decrease spending.
“I am pleased with our Q3 performance which exceeded our guidance both in terms of bookings and adjusted EBITDA. We are encouraged to see sightlines to growth and expect to be profitable for the full year on an adjusted EBITDA basis,” CEO Don Mattrick, formerly of Xbox, said.
“Our teams are working hard to compete more aggressively on the web, move to mobile and develop new hits, and I am happy with the early progress we have made. We believe our top franchises, Zynga Poker, FarmVille and Words With Friends can be evergreen in terms of consumer interest and we are focused on growing these franchises in fiscal year 2014. I am confident that Zynga is rewiring itself in a meaningful way that will strengthen the core of our business and put us back on track to achieve significant long term growth and profit.”
Meanwhile, Mattrick has recently been joined by another former mainstream gaming success – Clive Downie, who will take on the role of COO following the departure of David Ko in Mattrick’s organisation changes.
Downie, who has extensive experience at Mattel and EA and recently reigned as CEO of DeNA West, one of Zynga’s rivals, will report directly to Mattrick.
“I have known Clive for more than two decades and am pleased to welcome him to the team. He is a seasoned leader with a deep understanding of consumer, marketing and mobile engagement, international experience operating both in EMEA and Japan and a rich background in game publishing – all of which are incredibly valuable as Zynga navigates its move to mobile,” Mattrick said.
“I enjoyed my prior experiences working with Clive at Electronic Arts and have appreciated what he accomplished in the past five years at DeNA. As we build new leadership capabilities and focus the company on long term growth, Clive’s customer-centric point of view and proven track record will be invaluable to Zynga’s future.”
Downie said he joined Zynga because he believes it “has the ability to unlock disruptive new ideas that span gaming genres, markets and services”.
“Zynga’s uniquely positioned inside a growing market to deliver consumers around the world an entertainment experience as beloved as their favorite TV show, movie or music,” he said.