Zynga Reports Strong Q3 Financial Results, Announces $200 Mln Share Repurchase Program

Zynga, the well-known provider of social video games services, announced last week its financial results for the third quarter ended September 30.

The company generated $176 million in total booking and $12 million in Adjusted EBITDA. The growth is said to be driven by its three core mobile franchises – Slots, Words with Friends and Poker. The company said that the launch of Dawn of Titans and CSR2 has been moved to next year.

The company reported a net income of $3 million, significantly up from the net loss it recorded in the third quarter last year of $57.1 million, TechCrunch reported.

Other highlights include:

• Mobile bookings stood at $121 million or 69% of overall bookings, up 26% year-on-year
• Advertising and other bookings rose by 39% year-on-year
• $1.1 billion in cash, cash equivalents and marketable securities

However, player metrics were not very encouraging with Average Daily Active Users (DAUs) at 19 million (down 21 percent year-on-year) and Average Monthly Active Users (MAUs) at 75 million (down 27 percent year-on-year).

The company also announced a $200 million share repurchase program. Under the program, the company said it is authorized to buy back up to $200 million of outstanding shares of Class A common stock. The repurchase program underscores its confidence in the long-term potential of its business. The timing and amount of any share repurchases will be determined based on market conditions, share price and other factors.

Moreover, the press release also said that David Lee is resigning as Chief Financial Officer, but will stay on until mid-December to manage the transition with interim CFO, Michelle Quejado, Zynga’s Chief Accounting Officer.

"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," said David Lee. "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."