Zynga CFO Lee Quits After 18 Months on Job

Chief Accounting Officer Michelle Quejado will serve as interim CFO at the gaming company, which posted better-than-expected earnings for the third...
Matthew HellerNovember 10, 2015

David Lee has resigned as CFO of Zynga and Chief Accounting Officer Michelle Quejado will serve as interim CFO while the gaming company searches for a permanent replacement.

Lee’s resignation was announced as Zynga reported flat third-quarter earnings on revenue of $196 million. Analysts were expecting a loss of 1 cent per share and a 3% drop in revenue to $170 million.

But monthly active users, a key metric for Internet companies, declined 27% year on year during the quarter, with 6% and 63% declines on mobile and web, respectively.

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Lee, who replaced Mark Vranesh as CFO in April 2014, will stay on at Zynga until Dec. 11 to help with the transition.

“I believe Zynga is in a much stronger position today than it was when I joined the company,” Lee said in a news release. “We’ve moved the majority of our business to mobile and are focused on growing our new IP and existing franchises, while significantly reducing our cost structure.”

Before joining Zynga, Lee served as senior vice president of enterprise finance for Best Buy and held several leadership positions across finance and general management at Del Monte Foods.

“Over the past six months, David and I have partnered on a number of key initiatives to strengthen the company’s long-term position,” Zynga CEO Mark Pincus said. “This has included our $100 million cost reduction program, our continued transition to mobile and, most recently, our $200 million stock buyback program.”

Quejado joined Zynga in March 2015 as vice president of finance and corporate controller, and was appointed chief accounting officer in June.

Shares of Zynga are have fallen 4.3% over the past year. According to Forbes, the decline in the company’s user base raises “concerns regarding the sustainability of its revenue streams.”

“We expect Zynga’s user base to keep declining in the near term, as the company has delayed the launch of certain key games into 2016,” Forbes said.