Boston, MA 04/24/2014 (wallstreetpr) – Zynga Inc (NASDAQ:ZNGA), a $4 billion social games provider, announced its fiscal 2014 first quarter that topped Wall Street view, but dropped year-over-year. The company also announced various executive changes within its ranks with the key highlight being the update on the new role of the founder Mark Pincus.
The company, which has had numerous troubles in recent times, is trying to trace its footing in the red-hot games industry.
First quarter results
Zynga announced first quarter revenue of $168 million. Earnings in the quarter came in at a loss of $0.01 per share. Wall Street expected the company to report revenue of $164 million and loss per share of $0.01.
While the company’s first quarter results exceeded expectation in the revenue column and in-line in terms of earnings, Zynga dropped year-over-year. The company reported revenue of $264 million in the first quarter of 2013.
Key performance metrics
Zynga Inc (NASDAQ:ZNGA) is trying to manage a successful turnaround. The company faltered in the past year as competition intensified and its portfolio aged, without fresh titles to replenish the portfolio. Moreover, the company witnessed its bottom line weakening amid higher expenses and costs.
However, the company’s turnaround seems to be unfolding well. The company is back to releasing captivating games while the transition to mobile has shown great success.
Don Mattrick, the CEO hired to help manage a turnaround at Zynga Inc (NASDAQ:ZNGA), expects the company to exit its troubled operations sooner than later.
The company announced its monthly active users on mobile increased 11 percent in the latest quarter compared with a similar quarter a year ago. The daily mobile active users also increased in the quarter, jumping 10 percent.
Zynga acquired mobile games provider NaturalMotion earlier this year at the cost of $527 million. When the contribution from NaturalMotion is considered, total growth in monthly users on mobile increased 45 percent sequentially.
That being said, Zynga’s total active monthly users by end of the first quarter were 123 million, up from 112 million in the previous quarter.
Executive shifts
Zynga Inc (NASDAQ:ZNGA) announced various changes in its executive ranks. The company’s founder Pincus exited from the chief product officer role, only retaining his chairmanship in the company. Mr. Pincus sought Mr. Mattrick last summer to help head the company’s operations. Other changes included hiring of talents to help with creating of titles that can win over a big number of audiences.
