Zynga 2Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“I am excited to be on the call this afternoon to introduce our new CEO, Don Mattrick.”

“Regarding my role, my top priority is to onboard Don and completely transition the CEO role to him. As Chief Product Officer, I’m excited to begin a new chapter, engaging more directly with our product teams and spending more time and focus on our near-term and long-term product roadmaps which as always been my true passion.”

“we’re not happy with the performance of our second largest franchise Zynga Poker. In Q2, while we still hold our leadership position in poker on both web and mobile, our competitors are closing the gap.”

“One of the primary reasons, bookings on Zynga Poker declined in Q2, was because of ongoing illegitimate credit card activity on the web. Performance is also being impacted by declines in web poker as user shift more quickly to mobile, and more casual, social casino games such as Slots.”

“We also launched two Casual mobile titles this quarter including Running with Friends and Draw Something 2. While Draw Something 2 has been a disappointment, Running with Friends performed well.”

“With regards to the quarter, audience and bookings continue to decline, and we’re losing share on both web and mobile.”

“In the long term, the best way to drive profitability is to grow the top line.”

“Zynga is still a young company, and we have the ability to break some bad habits and get back to good fundamentals.”

“First thing I have discovered from being here is, there is a great talent base, both in the engineering side in running live services. We do have a pipeline. We are going through a review against it. I think it has a lot of potential when you look at it in the context of hit products connecting through social spanning, multiple devices and multiple operating systems. Candidly, I don’t think we have delivered fully against that vision, and that’s the first place that we are going to start with focusing in on our core hits, dialing up product quality and navigating the transition to mobile”

“So what makes a great mobile game? Obvious answer, it’s just incredibly fun, and people love to play. People love to share with their friends and it’s easy to get in and out of over the course of the day. That’s part of the benefit that a mobile [always] brings with you. It’s just quick access in and out of experience, experiences that you love, the ability to share with friends, with family, I think, are kind of core to that.”

“In relation to what Kings accomplished, I think they’ve done an incredible job. I think they’ve built a great hit. I’ll fess up. I am a Candy Crush player and I’ve enjoyed it, evangelized it and it’s lived up to those attributes that I spoke about in the first place.”