Zynga has announced its financial results for Q3 2015, which saw the mobile and social game company generate $196 million in revenue, a decrease of two percent from Q2 2015, but an increase of 11 percent from Q3 2014.
While Zynga’s online game revenue fell seven percent quarter-over-quarter to $151 million, advertising and ‘other’ revenue increased 18 percent from Q2 2015, to $45 million. Overall bookings for Q3 2015 were $176 million, an increase of one percent over Q2 2015.
In a statement, Zynga founder and CEO, Mark Pincus, commented:
Our teams delivered a strong Q3 driven by the performance by Wizard of Oz Slots, Words With Friends and our newly launched Empires & Allies. We generated $176 million in total bookings and $12 million in Adjusted EBITDA, well above the top end of our guidance range.
This growth was driven by our three core mobile franchises: Slots, Words With Friends and Poker, which grew 61 percent year-over-year. These results reflect the progress we continue to make in mobile where bookings have grown 26 percent versus the prior year and now make up 69 percent of our total bookings, up from 66 percent in Q2. We also continue to improve monetization and in Q3, we saw average bookings per user (ABPU) grow 27 percent year-over-year and 10 percent sequentially. Today, we also announced a $200 million stock buyback program. Given our belief in the social gaming opportunity, our talent and our IP, we believe this is in our shareholders’ interests.
Zynga also announced two of its upcoming titles, Dawn of Titans and CSR2, will now be released in 2016. Both games were previously expected to launch this year. In addition, the company announced a standalone Princess Bride Slots game for mobile, which is currently in testing in the Philippines, Malaysia, Canada, Australia and India. The game is expected to release worldwide in Q4 2015.
Finally, it was announced David Lee is resigning as Zynga’s chief financial officer, with Michelle Quejado becoming the interim CFO while Zynga selects a replacement.
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. 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.
For Q4 2015, Zynga projects its revenue to be between $170 million and $185 million, with projected bookings of $165 million to $180 million.