Zynga loses nearly half its daily users, says it's time for a 'reset'

More volatility is expected over the next year, CEO Don Mattrick said

Zynga will get "back to basics" and take a "longer term view" of its business after reporting that its user base has declined by almost a half in the past year.

The social games company had 39 million daily active users in the quarter ended June 30, down 45 percent from 72 million at the same time last year, it disclosed in its earnings report Thursday.

Zynga also said it would scrap a plan to offer real money games, such as casino games, in the U.S. It will continue to evaluate those games in the U.K., though its focus is on social games that are free to play.

Revenue for Zynga's second quarter declined 31 percent from a year earlier, to US$231 million. Its net loss was $15.8 million, an improvement on a loss of $22.8 million in the second quarter last year.

"We need to get back to basics and take a longer term view on our products and business," CEO Don Mattrick said in a statement, adding that the company has "hard work" in front of it.

"As we reset, we expect to see more volatility in our business than we would like over the next two to four quarters," he said.

Zynga's monthly active users fell sharply, too, from 306 million last year to 187 million during the quarter, it said.

Zynga has struggled to maintain its early growth and expand its user base. The company's games have historically been tied to Facebook's platform, but in March Zynga made changes to let users create their own accounts on Zynga.com instead of requiring them to log in through Facebook. The Zynga.com site now has 4.2 million monthly active users, the company said Thursday.

Zynga's flagship titles include "Farmville" and "Words with Friends." Zynga pulled the plug on other games such as "The Ville" and "Dream Zoo" in April.

In June, the company said it would lay off about 520 employees, or 18 percent of its workforce, and close certain offices to reduce its costs.

Mattrick, who formerly headed Microsoft's Xbox business, replaced Mark Pincus as Zynga's CEO in early July. Pincus continues to serve as chairman of the board and chief product officer.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesGame platformsZyngagamesonline servicesmobilesocial mediainternetFacebook

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?