Zynga Posts First Profit Since Q4 of 2012
The rise and fall of social casino giant Zynga has been a topic of heated discussion over the years in the gaming industry. The mistakes social casino giant made have been well documented but one of the main reasons why they have never and probably will never regain their $10 share price at the time of their IPO is the simple fact that they did not focus on mobile first as a strategy.
The last few years have seen major declines as well as musical chairs for their top brass including founder and CEO Mark Pincus who has left and come back so many times one has a problem following him.
Zynga just released the Q2 results and total revenues were$209.2m which was a 15% increase year–on year from the $181.7m last year. More noteworthy was that mobile revenues was up 30% year-on-year and made up 86% of the overall company revenues in the quarter. Mobile booking also recorded a 33% increase.
Net Income was $5.1m versus the $4.4m loss in the same period last year. This means that this is Zynga’s first profit since Q4 2012. Zynga Poker who is celebrating its 10 year anniversary made up 21% of overall revenues. CEO of Zynga Frank Gibeau commented on the positive results,” We had a great first half of the year, beating our Q2 guidance on the top and bottom line and posting our best revenue and bookings performance in four years. Our ‘forever’ franchises continue to flourish, and today we have the strongest mobile portfolio in company history. Our operating cash flow is the best we’ve generated in five years and, this past quarter, we reached profitability, achieving net income of $5.1m.”