Presenting his first market update, Frank Gibeau new CEO of Zynga Plc detailed that he was confident of the company’s long term performance as the social games developer beat Wall Street forecasts.
Top titles for Zynga such as Farmville generated sales of $187 million for Q1 2016 (period ending 31 March) up 8% on 2015 corresponding $183 million
Despite its improved revenue performance, Zynga would still post substantial losses for the period projected at $20 million for its opening 2016 quarter.
Upon taking the Zynga’s leadership in March, Gibeau detailed that the company needed to refocus its product development in order to drive player engagement and reposition the developer at the top of the social games market.
Since its 2011 NASDAQ public offering, Zynga has lost circa S1 billion for its investors, with its share price falling from $15 high to a flat line $2.30 price in 2015-2016.
Updating company stakeholders, Gibeau detailed further positives stating that Zynga had seen increased in-play purchases whilst also recording higher advertising spend on its free play games.
News of the financial results sent Zynga shares surging 12% to $2.57 in after-hours trading