Unlike many publishers, Zynga Latest quarterly financial report It achieved all of the company’s forecasts and set record results for both top-line and bottom-line growth year-over-year, contrary to difficult comparisons from the first quarter of the 2020 pandemic.
However, the publisher’s stock price fell 18% the next day in the midst of fierce trading, and has not yet fully recovered. So what did investors hear about the consequences they didn’t like?
Talk to GamesIndustry.biz Zynga Chief Operating Officer Matt Bromberg emphasized that after reporting the financial results, he did not expect a sustained decline in business performance and expected full-year sales to increase 38% year-on-year.
“At the beginning of the third quarter, we found that the players who recently joined us weren’t behaving exactly like the cohorts who joined us before,” says Bromberg. “Therefore, there were some softness associated with the recent cohort, but these tend to be expected to normalize over time. When you pull the camera back, both us and mobile games are significantly overall. Is growing up.
“I think pulling the camera back will significantly grow both us and mobile games.”
“Ultimately, it will be much higher than before COVID, so even if it’s a bit volatile this quarter, the steady state will be much better than before.”
Pandemic has also announced that it will begin subleasing its San Francisco headquarters to other companies, bringing some cost savings to the company.
“It didn’t make much sense for us to maintain that space,” Bromberg explains. “It was very expensive and too big for our needs.”
Zynga has completely abandoned its headquarters, but there are several smaller locations elsewhere in San Francisco that will be preserved as we move to another type of office model.
“When we get back to the office, we expect to use every office in a very different way,” says Bromberg. “We’re really proponents of the hybrid model back to work. So, generally speaking, I don’t think anyone is in the office more than a couple of days a week. It’s a combination of work. From home. We come to the office for group meetings and socializing, but because we’re away from the model where everyone has a desk and space, the new model we want to pursue significantly reduces our space needs. “
“Because everyone is away from the model that has a desk and space, the new model we want to pursue greatly reduces our space needs.”
He adds that the solution was “significantly influenced” by feedback from various teams.
Still, Bromberg is convinced that the rising cost of user acquisition is a new, rather than normal, temporary setback.
“That said, we’re also investing a lot in deeper advertising and data technology. The completion of the Chartboost acquisition is proof of this. Further our own network. It’s meant to be useful, so it’s not entirely dependent on third-party networks. “
It wasn’t the focus of the revenue report, but I also ask Bromberg about the word that the Merge series is declining.
In recent years, Merge Dragons and Merge Magic have helped drive many of the company’s best quarters in terms of revenue and booking. But by doing so, they also Acquired Merge maker Gram Games in 2018 There were a lot of accidental compensation costs caused by the unexpectedly powerful performance of the game.
“The Merge team is working on a new game that is also very exciting in this area, especially the pirate-themed game that we are really excited about.”
Needless to say, it’s not ideal to start a relentless decline shortly after the success of the series ceases to hurt profits, so ask Bromberg if he plans to bring Merge Dragons and Merge Magic back to growth. As Zynga plans to launch Farmville 3, it makes more sense to revitalize the Merge business with new games.
“We are working on both,” says Bromberg. “First, continue to invest in and innovate in the game itself. The Merge title is accelerating its development with new feature sets and bold beats.
“But the Merge team is also working on some really exciting new games in this space. They are especially working on pirate-themed games that we are really excited about.”
Long-running games like Words With Friends and Zynga Poker have posted some of the best quarters in the last few years, and Bromberg considers Merge Magic and Merge Dragons to be more like these games than different. increase.
“Both Zynga Poker and Words With Friends used to have a quarter down in their more than a decade of life,” says Bromberg. “Also, both have grown enormously in the second half of their existence, and the key to all three situations is to continue investing in the core experience, which allows players to come back and live. You will be able to operate the service. “
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Source link Zynga changes Apple's privacy regarding the impact of the resumption of the pandemic