Zynga Records 12 Percent Drop In Revenues For Q3 Of 2014
The story of social gaming giant Zynga seems to be repeating itself in the last two years. For every step they take going forward they are still playing catch up to the time of their 2011 IPO launch that saw their share price trading at $10. The changes in management and staff have been well documented by our team over the last two years but you get the feeling that it is too little too late for them to ever return to the number one spot in social gaming.
Their now not so newly appointed CEO Don Mattrick commented on their Q3 results and once again is sounding ever the optimist despite the many critics pointing out the fact that he continues to voice the same opinions quarter after quarter. Zynga reported a 12% decline in revenues to $174 million for Q3 which is down from the $202m in the same quarter in 2013. CEO Mattrick unsurprisingly was not discourage and said,” I am encouraged by the results of the quarter as we navigate through this time of transition. In Q3, we reported bookings at the high end of our guidance range and Adjusted EBITDA near the midpoint of our guidance range. Our teams have been working hard over the last year to reshape our business and we are seeing that work show up in two important areas – our franchise bookings and mobile bookings growth.”
Mattrick believes that Zynga is on track to turn things around especially in the mobile sector which saw an increase of 111% in mobile bookings. We all know that founder and former CEO of Zynga Mark Pincus has admitted that one of the fatal mistakes by Zynga was the fact that they focused too heavily on Facebook and web and ignored the mobile sector which is vital to any gaming company’s success and growth plans.
Mattrick continued to look forward and voice Zynga’s vision for the long run. He said,” As we move forward and aggressively compete in an exciting market, we continue to believe that we are well positioned to take advantage of our global scale and diversified product portfolio, and we remain committed to working together as a team to deliver long term value for our consumers, employees and shareholders.”