Zynga at a loss of $15.8M... should we be surprised?
Zynga the social game makers shared their second quarter financial results on July 25th July, 2013 stating a $15.8 million loss for the 3 month period up to date June 30th and a revenue of $213 million. Apparently revenue for the quarter was down by 31% year-on-year from the same period last year, when Zynga scraped in $332 million.
This will not be a surprise to regular players but Zynga also stated a decline in the number of daily active users during their second quarter. With only 39 million daily users this is a big drop compared to the 72 million daily users they could boast about last year in its second quarter, a drop of 45%.
Regardless of the declines, recently appointed CEO Don Mattrick released this statement.
"The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity," said Mattrick. "To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company. We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I'm privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders."
While Zynga continued to release new titles : Hidden Shadows, War of the Fallen, Draw Something 2, Battlestone,Solstice Arena and Running with Friends ... they still have to downscale with talk of 520 job cuts.
Source - Polygon
Posted by - Welshy
