For First Time Zynga Reports Profit For Second Consecutive Quarter
The ups and downs of social gaming giant Zynga have featured prominently by our team in the last 5 years. It is hard to think of a company that has gone through so many policy and staffing changes. Whether it be the original CEO and Founder Mark Pincus hiring and firing himself, to them entering real money gaming and then doing a retreat.
It is no secret that the biggest blunder Zynga made following their much hyped IPO launch was their failure to focus on the mobile. This has cost them heavily and has seen their share price drop as much as 70% from their $10 IPO price in 2011. Having said all that the last two quarters have shown that things might finally be turning around.
CEO Frank Gibeau has just announced their Q3 results which have been the best revenue and bookings performance for Zynga in four years. Revenues for Q3 were $224.6m which was 23% up year-over-year. Bookings were up 9% year-on-year to $213.5m.
Most significantly 87% of total revenues and bookings were now mobile according to Gibeau. This is the first time since Zynga went public that Zynga delivered two consecutive quarters of net incline. Net income for the quarter was $18.1 million, Gibeau went on to say,” Our year-to-date cash flow from operations has more than doubled to $68.2 million, up from $32.3 million a year ago. We remain on track to deliver our improved margin goals by the end of 2018 and, over the long-term, we’re focused on achieving margins in-line with our peers.”