Mark Pincus, CEO and founder of Zynga
It’s been a bumpy week for social gaming company Zynga, which announced Tuesday it had shed 5pc of its workforce, but it has delivered better news in its third-quarter financial results, which show a 3pc increase in revenue to US$316.6m from a year earlier and more daily active users.
The company behind Facebook games such as FarmVille and CityVille revealed the job cuts during Apple’s press event on Tuesday, where Apple revealed new products, including an iPad mini.
Zynga’s daily active users increased from 54m in Q3 of 2011 to 60m in Q3 of 2012, marking a 10pc increase year-over-year.
Monthly active users increased from 227m in the year-ago quarter to 311m in Q3 of 2012, up 37pc year-over-year.
Monthly unique users also rose, from 152m in Q3 of 2011 to 177m in Q3 of 2012, revealing a 17pc jump year-over-year.
The company also reported findings from AppData, based on daily active users, which show Zynga held five of the top 10 games on Facebook, including Words With Friends, Zynga Poker, Bubble Safari, ChefVille, and FarmVille 2.
Zynga’s Q3 net income has fluctuated, from a US$12.5m profit last year to a US$52.7m loss during this year’s third quarter, much of it resulting from the write-down of Omgpop.
The company reported free cash flow of US$17m, and an authorised share repurchase programme of US$200m.
Bookings amounted to US$255.6m, a decrease of 11pc compared to the third quarter of 2011 and a decrease of 15pc compared to the second quarter of 2012.
“While the last several months have been challenging for us, Zynga remains well positioned to capitalise on the growth of social gaming,” said Mark Pincus, Zynga’s CEO and founder.
“We’re implementing a number of steps to drive long-term growth and profitability. The successful launches of FarmVille 2 and ChefVille in the third quarter demonstrate that when we develop great games, our large player audience engages. It’s more clear than ever that along with search, shop, and share, play is a fundamental pillar of the internet, and Zynga continues to be the leader,” Pincus said.
