Zynga CEO Don Mattrick has explained that the global publisher (NASDAQ:ZNGA) is currently making progress, despite enduring a decidedly disappointing quarter.
Speaking to VentureBeat, Mattrick attempted to soften the blow of the recent quarterly report, which revealed the firm has suffered a significant drop in revenue, by suggesting that Zynga is currently playing the long game, and, as such, is actually exactly where it needs to be.
"The headline, for me, is that we're making progress. Our transformation is underway," explained Mattrick.
"A lot of things are going on in the business. Some things are shifting out as far as dates to light up live services. We know what we need to do to improve product quality."
The long haul
According to Mattrick, Zynga had to sacrifice itself in the short term in order to extend its lifespan, and while outsiders might have labelled the quarter a failure, he believes it met corperate expectations.
Even though the firm is allegedly on track, Mattrick has admitted that using the mobile giant's short term revenue as a human shield was a "painful choice".
"In my opinion, it'll improve the longevity and lifespan of our services in the future. We understand that it comes at a short term cost as far as 2014 financial performance," offered Mattrick.
"We're making choices toward the medium and long term. I believe that I've been consistent and up-front with investors, that would be the lens we'd use to look at the world.
"The quarter met our expectations. We'd love it if we exceeded expectations versus net, of course. In relation to Q3 and Q4, we looked at our slate. We looked at the timing of products, both from Zynga and NaturalMotion. We made a deliberate decision to spend more time, as painful as that is."
While the higher-ups at Zynga might be the definition of calm, it's likely the firm's shareholders won't be so easily placated.
They'll want to see an immediate change, and while Mattrick understands investors won't be thrilled with his decision to sacrifice growth, he has urged them to be patient.
The rewards, suggests Mattrick, are on their way.
"I can understand how shareholders want to see the transformation completed. They want to see our company in growth mode," said Mattrick.
"I think I've been clear about the principles that we're using, which is, make the best decision for the medium and long term.
"The short term, for me, is a single quarter. We shifted things out that move revenue from 2014 to 2015. We reset prior guidance for a lower number this year.
"The other thing I shared with everyone is, why can I do that? I can do that for two reasons. One, I believe that there's a great market opportunity and that we're building out to live in the market for multiple years.
"The second part is that we have a strong balance sheet. We have $1.5 billion in cash and equivalents like real estate we own. We have no debt."
[source: VentureBeat]
