New CEO Don Mattrick says company has failed to meet player, investor, and internal expectations; outlines plan to turn company around.
New Zynga CEO Don Mattrick has spoken out about the social game company’s recent loss-filled earnings report, saying the company has failed to meet player, investor, and internal expectations, and “can do better.”
“It“s clear that the market opportunity around us is growing at an incredible clip. It“s also clear that today we are missing out on the platform growth that Apple, Google and Facebook are seeing,” Mattrick said on a recent earnings call. “In short, we can do better.”
Mattrick explained that over the course of the next few months, he will work with Zynga’s leadership team to “challenge previous assumptions and to focus on business fundamentals,” areas he said the company has struggled in for the past year.
“Getting a business back on track isn“t easy and isn“t quick,” Mattrick said. “We have a lot of hard work in front of us but I believe we can succeed as a team and Zynga can do this.”
“There“s no denying we“re not where we want to be. We“ve not met our investors“ expectations, we“ve not met our own expectations, and most importantly, we“ve not met our players“ expectations,” he added. “But there“s also no denying that we have what it takes to get back to winning.”
To return to form, Mattrick said Zynga must “get back to basics,” meaning the company must take a longer-term view on its products and business. This also includes developing more efficient processes and “tightening up” execution across leadership.
In the next 90 days, Mattrick said he is focused on “getting under the hood” to evaluate “every aspect” of Zynga’s business. This includes “top-to-bottom” business reviews and spending time “heads down” with development teams in an effort to improve product quality.
This company review also includes Mattrick examining how the company is deploying people “at all levels of the company.” He will also use the review period to “assess and reset our product pipeline.”
“I see the potential in all parts of our business–from regaining share on Facebook to leveraging our IP, our network, and our knowledge for mobile,” Mattrick said. “And, because of what the company has already achieved, I believe we have the staying power to successfully navigate our transition and create connected experiences that span multiple devices and multiple operating systems.”
Overall, Mattrick said Zynga is still a “young company,” and one that has the ability to “break some bad habits and get back to some good fundamentals.”
“There are good winds at our back–my job is to get our sails up and Zynga pointed in the right direction,” he said.
Mattrick left his post as president of Microsoft’s Xbox division earlier this month to join Zynga as its new CEO. The company reported a $15.8 million loss yesterday and revealed it lost nearly half of its daily active players year-on-year.
Zynga also announced yesterday that it will not pursue a license for real-money gaming in the United States, though it continues to examine options overseas.
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