Zynga Inc (NASDAQ:ZNGA) released its Q4 2017 earnings report after closing bell tonight. Zynga earnings amounted to 1 cent per share on $223.3 million, while analysts had wanted to see $213.4 million in revenue. Zynga beat management’s guidance by about $18.3 million. Net income grew to $12.9 million.
Zynga’s adjusted EBITDA increased to $46.5 million from $10.6 million a year ago; it beat management’s guidance by about $11.5 million. Ad revenue grew to $59 million in Q4 2017, while ad bookings increased 21% to $59.9 million. Advertising was 25% of the game maker’s total revenue and 27% of its total bookings, compared to 26% and 25%, respectively, in the year-ago quarter.
The game maker’s mobile revenue rose 32% year over year to $203.6 million, while mobile bookings grew 18% to $197 million. Zynga said Q4 2017 was its best quarterly mobile performance ever with 20 million mobile daily users and 76 million mobile monthly users, representing increases of 24% and 45% year over year, respectively.
The company also said it successfully launched Words with Friends 2 during Q4 and that the game franchise delivered its best quarterly mobile performance in both bookings and revenues in its eight-year history. Mobile revenue from Words with Friends grew 19%, while mobile bookings were up 28% year over year, helped by the new installment in the franchise. Words with Friends 2 reached the top spots in free apps, free games and free word games in the App Store.
For the Zynga earnings release for Q1 2018, management guided for $200 million in revenue and a $10 million increase in deferred revenue. They expect $210 million in bookings, a net loss of $5 million and $20 million in adjusted EBITDA.
For 2018, the game maker expects its live services to drive its financial performance as it continues to invest in games and mobile technologies. For the full year, Zynga expects mobile bookings to be up in the low double digits as contributions from the recent Peak Games acquisition offset declines from its older mobile games.
Following the Zynga earnings release, the company’s stock jumped in after-hours trade, climbing as high as $3.72 after the report.
Press Release:
SAN FRANCISCO–(BUSINESS WIRE)–Feb. 7, 2018– Zynga Inc. (Nasdaq:ZNGA) today released its financial results for the fourth quarter and full year ended December 31, 2017 by posting management’s Q4 2017 Quarterly Earnings Letter on its website. Please see the attached Quarterly Earnings Letter or visit http://investor.zynga.com/financial-information/quarterly-results to view the letter.
This press release features multimedia. View the full release here:http://www.businesswire.com/news/home/20180207006112/en/
Zynga management will also host a Q&A session at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) today to discuss Zynga’s fourth quarter and full year 2017 performance. Questions may be asked on the call, and Zynga will respond to as many questions as possible.
The live Q&A session can be accessed at http://investor.zynga.com – a replay of which will be available through the website after the call – or via the below conference dial-in number:
- Toll-Free Dial-In Number: (800) 537-0745
- International Dial-In Number: (253) 237-1142
- Conference ID: 1194619
About Zynga Inc.
Since its founding in 2007, Zynga’s mission has been to connect the world through games. To date, more than 1 billion people have played Zynga’s games across web and mobile, including FarmVille, Zynga Poker, Words With Friends, Hit it Rich! Slots and CSR Racing. Zynga’s games are available on a number of global platforms including Apple iOS, Google Android, Facebook and Zynga.com. The company is headquartered in San Francisco, Calif., and has additional offices in the U.S., Canada, U.K., Ireland, India, Turkey and Finland. Learn more about Zynga at https://companyblogdotzynga.com/ or follow us on Twitter and Facebook.
