The company reported revenue of $168 million (€121.4 million) during the first quarter of 2014, a drop of 36% on the $263.6 million achieved in the corresponding period last year.
Zynga also suffered a net income loss of $61.2 million, placing the firm in a significantly worse position than at the same point last year when it recorded a gain of $4.1 million.
The firm also recorded a drop in adjusted earnings before interest, tax, depreciation and amortisation, which fell from $28.7 million in Q1 of 2013 to $13.8 million this year.
Following the disappointment of Q1, Zynga forecasts that its full-year revenue for 2014 will total between $770 million and $810 million while adjusted EBITDA is projected to be in the range of $70 million to $100 million.
Zynga also confirmed that founder Mark Pincus is to step down from his operational role as chief product officer in order to focus on serving as chairman of the company.
Pincus, who stepped down as chief executive officer last year, now relinquishes all his executive duties with Zynga.
Despite making losses in the first quarter, chief executive officer Don Mattrick, who replaced Pincus in the role last year, is optimistic about the company’s potential growth in 2014.
Mattrick said: “In Q1 our teams delivered a solid start to the year against our strategic frame of growing and sustaining our franchises, creating new hits and driving efficiencies.
“We have established a strong base for 2014 and believe we are pacing well for a year of growth.
“For the first time in two years, our teams delivered sequential growth across our key performance metrics including bookings, adjusted EBITDA, mobile bookings mix and audience.
“We believe these indicators demonstrate our strategy is working and the focus, rigor and discipline of our teams is showing up in our results.”
Speaking of Pincus’s decision to step down, Mattrick said: “Over the last 10 months, I have found his partnership to be intellectually rewarding and I am deeply grateful for the opportunity to continue building out his vision.
“Going forward, with Mark in his role as chairman of the board, we will continue to be close partners and work together to achieve our winning aspiration to be the at scale industry leader by delivering more number one games in more categories than any other competitor.”
Meanwhile, Zynga has moved to strengthen its creative and technical operations by bringing in three new senior members of staff.
Alex Garden has been appointed as president of Zynga Studios, a role in which he will oversee all of the firm’s studios and CTO division.
In addition, Academy Award nominated visual artist Henry LaBounta has been named as Zynga’s first chief visual officer while Jennifer Nuckles will join the company as its chief marketing officer.
source : www.igamingbusiness.com
