- Zynga (ZNGA +2.5%) is up 1.2% after hours now following news-packed Q3 results that included financial beats, a departing CFO and the delay of two games into 2016 along with a $200M buyback program.
- While the company saw success with the help of cost cuts, users present a challenge as the company shifts from its older Facebook base to a more mobile mix.
- “We are seeing some initial benefits from the cost-cutting that we did in May,” CEO Mark Pincus tells VentureBeat. “We have significantly lower operating expenses.”
- Average daily active users of 19M were down 21% Y/Y; average monthly active users of 75M were down 27%; and average daily bookings per average DAUs were $0.10 (up 27% Y/Y and up 10% sequentially).
- Of DAUs, average mobile were 16M users and Web DAUs were 3M. Of the MAUs, average mobile were 61M (down 6%) and Web were 14M (down 63%).
- Social casino games have done well, Pincus notes. “We are positioned to grow the audience more next year."
- On the delays of CSR2 and Dawn of Titans, Pincus says the company learned lessons from launching Empires & Allies, and he'd like more social features ready at launch rather than after. "The No. 1 learning we had from Empires & Allies was the power of social ... In Dawn of Titans, we see a big upside in what we can deliver to players through social ease of use and integration of social into gameplay.”
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Conference call/Q&A to come at 5 p.m. ET.
- Press Release