Can Zynga Operate More Efficiently Going Forward?

by Trefis Team
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  • In 2014, for every dollar spent in operating expenses (SG&A adjusted for depreciation, amortization and share based compensation), Zynga generated $0.90 in revenue
  • However, revenue generated for every dollar spent on operating activities improved to $1.10 in 2015
  • The successful decline in operating costs can be attributed to Zynga’s cost reduction plan initiated in May 2015, whereby it intended to cut around 18% of its workforce (comprising 364 employees) and reduce spending on outside and centralized services.znga-17
  • By 2018, we estimate that the company’s revenue per dollar of operating expenses to increase to $1.40
  • We expect this increase to be driven by Zynga maintaining strong control over its expenses and growing its revenues from core franchises, new mobile games as well as advertising. Advertising revenues grew 41% in the first quarter this year compared to a 7% decline in online games revenue.

Have more questions about Zynga? See the links below:


1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Zynga
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