Second-quarter decreases in revenues, bookings and the number of daily and monthly active users leave Zynga with “a lot of work” in front of it, CEO Don Mattrick has said.
The social gaming company has recorded revenue of US$231m, down 31pc compared to the year-ago quarter and down 12pc compared to the first quarter of 2013.
Online game revenue totalled US$203m, reflecting a decrease of 30pc compared to the second quarter of 2012 and a drop of 11pc compared to the first quarter of the year.
Advertising revenue also fell, by 33pc to US$27m, compared to the year-ago quarter. Ad revenue is down 19pc compared to the first quarter of 2013.
Bookings amounted to US$188m, sinking 38pc compared to the second quarter of 2012 and down 18pc compared to this year’s first quarter.
Zynga’s net loss totalled US$16m for the second quarter, whereas in the year-ago quarter it had amounted to US$23m.
Daily active users decreased from 72m in the second quarter of 2012 to 39m in the second quarter this year, down 45pc year-over-year.
Monthly active users decreased from 306m in the year-ago quarter to 187m in the second quarter of 2013, down 39pc year-over-year.
The number of monthly unique users (MUUs) also revealed a reduction of 36pc year-over-year. MUUs decreased from 192m in the second quarter last year to 123m in the second quarter this year.
Back to basics – Zynga CEO
Don Mattrick, CEO, Zynga, said the next few years will be a time of “phenomenal growth” in its space and Zynga has “incredible assets” to take advantage of the market opportunity.
“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,” Mattrick said.
“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.”