Zynga CFO resigns despite revenue boost
Concern over decline in monthly users although cost-cutting drive begins to show on bottom line
Zynga CFO David Lee has resigned following the firmâs Q3 announcement which saw a drop in monthly users despite an increase in revenues and EBITDA. [private]
Zyngaâs revenues for the three months ended 30 September were up 11% year-on-year to $196m while adjusted EBITDA was up to $12m from just $2m in the same period last year following a major reduction in headcount at the firm.
However, monthly active users were down 27% year-on-year, leading the firm to announce a guidance for Q4 of a net loss of 6 to 8 cents per share.
The firm also took the opportunity to announce the resignation of Lee, with current chief accounting officer Michelle Quejado taking on the role on an interim basis while Zynga searches for a replacement.
âI want to thank David for the leadership and commitment he has shown Zynga,” Mark Pincus, Zynga CEO, said.
“Over the past six months, David and I have partnered on a number of key initiatives to strengthen the company’s long-term position. This has included our $100m cost reduction program, our continued transition to mobile and, most recently, our $200m stock buyback program,â Pincus added.
Zynga has been on a major cost-cutting exercise this year, announcing in May that it would cut 18% of its global workforce.
The firm also confirmed a $200m stock buyback program, with Pincus saying the move was âin our shareholdersâ interestsâ.