Zynga has reported a significant year-on-year increase in revenue during the three months to September 30, while also confirming that chief financial officer David Lee has resigned with immediate effect.
Revenue in the third quarter amounted to $195.7 million (€179.1 million), an increase on the $176.6 million posted in the same period last year, but a slight drop on the $199.9 million reported in the second quarter of this year.
Net income came in at $3.1 million, up from a loss of $57.1 million in Q3 of last year and a negative of $26.9 million in the second quarter of 2015.
Elsewhere, diluted net income per share came in at a flat $0 compared to losses of $0.06 and $0.03 in Q3 of last year and Q2 of this year, respectively.
Adjusted earnings before interest, tax, depreciation and amortisation also grew to $12.4 million, up from $2.2 million in Q3 of 2014 and $963,000 of Q2 this year.
The results come despite a drop in customer usage figures, with average daily active users down from 24,000 in Q3 of 2014 to 19,000 in the most recent period.
Elsewhere, average monthly active users are down from 103,000 last year to 75,000 this year, with average monthly unique users also dropping from 66,000 to 51,000.
Mark Pincus, chief executive and founder of Zynga, said: “We generated $176 million in total bookings and $12 million in adjusted EBITDA, well above the top end of our guidance range.
“This growth was driven by our three core mobile franchises Slots, Words With Friends and Poker, which grew 61% year-over-year.
“These results reflect the progress we continue to make in mobile where bookings have grown 26% versus the prior year and now make up 69% of our total bookings, up from 66% in Q2.”
Confirmation of Zynga’s third quarter results came as the firm also announced that Lee has resigned after just over 18 months with the company.
Michelle Quejado, chief accounting officer at the social gaming company, will step into the role on an interim basis until a replacement is found.
Quejado will work with Lee and Pincus over the next month to ensure a smooth transition.
Speaking about his departure, Lee said: “I believe Zynga is in a much stronger position today than it was when I joined the company, and I want to thank Mark for his partnership.
“We’ve moved the majority of our business to mobile and are focused on growing our new IP and existing franchises, while significantly reducing our cost structure.
“I’m proud of what our teams have accomplished and know that they, along with our interim CFO Michelle Quejado, will continue to focus on delivering long-term value for our shareholders while executing against our mission to connect the world though games.”
