Microsoft Corporation (MSFT) has named Kevin Scott to a newly created role of chief technology officer (CTO) for the company. This is an expansion of Scott’s new role at LinkedIn as senior vice president of Infrastructure. As Microsoft’s CTO, Scott will drive planned, cross-company programs to maximize Microsoft’s impact with members and customers.
Scott joins Microsoft’s Senior Leadership Team, reporting directly to Microsoft Chief Executive Officer Satya Nadella.
“We are thrilled that Kevin will bring to Microsoft his unique expertise developing platforms and services that empower people and organizations,” Satya said. “Kevin’s first area of focus is to bring together the world’s leading professional network and professional cloud.”
“The thing that gets me up in the morning and that has always excited me about technology is its role in empowering people and assisting to enrich their lives,” Scott said. “I am very optimistic about where Microsoft is headed and how we can continue to use technology to solve some of society’s most important challenges.”
Scott will continue to play an active role at LinkedIn as senior vice president of Infrastructure and remain a member of LinkedIn’s executive administration team. His distinguished 20-year career spans both academia and industry as a researcher, engineer and leader. Before his role as senior vice president of Engineering and Operations at LinkedIn, Scott held a number of engineering leadership roles at Google and AdMob. Scott is an adviser to several Silicon Valley startups, an active angel shareholder and founder of the nonprofit organization Behind the Tech.
Zynga Inc (ZNGA) declared financial results for the fourth quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights
- GAAP Revenue of $190.5 million; above the high end of the guidance range, up 3% year-over-year and up 4% sequentially
- GAAP Operating Expenses of $162.4 million, down 9% year-over-year and down 2% sequentially
- GAAP Net Loss of $35.4 million, below our guidance range but an improvement of $15.8 million or 31% year-over-year, and $6.3 million or 15% sequentially
- Deferred revenue raised by $11.0 million; $6 million above our guidance
- Bookings of $201.5 million; above the high end of the guidance range, up 11% year-over-year and up 2% sequentially
- Non-GAAP operating expenses of $126.3 million were in line with our expectations; down 3% year-over-year and flat sequentially, driven by lower sales and marketing spend
- Adjusted EBITDA, which includes the impact of changes in deferred revenue, of $10.6 million; below our guidance range mainly because of the platform fees associated with the higher revenue deferrals
- Operating cash flow of $27.7 million, up $24.3 million year-over-year and up $6.7 million sequentially
2016 Annual Financial Highlights
- GAAP Revenue of $741.4 million, down $23.3 million or 3% year-over-year
- GAAP Net Loss of $108.2 million, an improvement of $13.3 million or 11% year-over-year
- Deferred revenues raised $13.1 million contrast to a release of $64.8 million in 2015 representing a $77.9 million swing year-over-year
- Bookings of $754.5 million, up $54.6 million or 8% year-over-year
- Adjusted EBITDA, which includes the impact of changes in deferred revenue, was $48.8 million, down $33.0 million or 40% year-over-year with strong operational performance in 2016 more than offset by the swing in deferred revenue year-over-year
- Operating cash flow of $60.0 million, a $104.5 million increase contrast to 2015 and our best performance since 2012
“We had a strong Q4 and made noteworthyprogress this year in our turnaround and we’re encouraged by the fundamentals of our business as we head into 2017. We’re happy with the performance of our live services and the quality of our new releases as we improved profitability and continued to sharpen our operating model,” said Frank Gibeau, CEO of Zynga. “We rallied around our company mission to connect the world through games and create the highest quality social experiences for our players. Our renewed commitment to our live operations is paying off with Zynga Poker and Words With Friends delivering outstanding revenue and bookings. We improved our quality and predictability, launching all games in our 2016 slate counting two new NaturalMotion titles – CSR2 and Dawn of Titans – which we expect to be long term mobile franchises for us.”
“In Q4 we delivered another strong quarter with GAAP revenues of $190.5 million, above the high end of our guidance range, up 3% year-over-year and GAAP Net Loss was $35.4 million, below our guidance range but an improvement of 31% year-over-year. Our topline performance was driven by better than expected mobile bookings from Zynga Poker and CSR2, offset by correspondingly higher revenue deferrals. GAAP operating expenses were $162.4 million, down 8.5% year-over-year. Non-GAAP operating expenses were $126.3 million, down 3.1% year-over-year and in line with our expectations resulting in higher operating leverage in the quarter. Our Adjusted EBITDA, which includes the change in deferred revenue, was $10.6 million, $1.4 million below our guidance range, because of the negative impact of higher revenue deferrals. Overall, our strong business performance delivered operating cash flow of $27.7 million, up $24.3 million year-over-year,” said Ger Griffin, CFO of Zynga.