Zynga Continues To Suffer Despite Cutbacks
Zynga is in a bad way, its stock has fallen 15% since July and while it has beaten the market year-to-date with a return of 22% vs. 16%, its Q2 results were not encouraging at all.
Zynga’s revenue has fallen by 31%, bookings were down by 38% and Zynga posted a quarterly loss of 2 cents a share.
Furthermore, the stock may have fallen even further if it weren’t for an 18% cut in the Zynga workforce last June.
All of Zynga’s problems are the result of a drop in users; there has been a 45% year-over-year decline. Furthermore, many say that there have not been enough new titles to keep players coming back and now Zynga’s titles have fallen significantly behind the popular Candy Crush Saga from King.
To try and address these issues Zynga’s co-founder Mark Pincus stepped down as CEO to make way for Don Mattrick who helped bring the Xbox to prominence at Microsoft and also built his own video game company.
While it is still early days, Mattrick’s task is not easy and he has a lot of work ahead of him.