Zynga released its latest earnings report after closing bell tonight, coming in breakeven on an adjusted basis on $187 million in revenue. Analysts had been expecting adjusted losses of 1 cent per share and $162.2 million in revenue. Management had guided for revenue of between $160 million and $175 million. In last year’s first quarter, Zynga lost 5 cents per share on an adjusted basis on $183 million in revenue.
Zynga beats bookings guidance
GAAP losses were 3 cents per share, compared to last year’s 5 cents per share in losses. The game maker reported $182 million in bookings, representing an 8% year over year increase. Management had guided for bookings of between $150 million and $165 million. In last year’s first quarter, bookings amounted to $167 million. Adjusted EBITDA was $11 million, which also beat guidance and was a significant increase from last year’s $2.1 million. Advertising and other bookings grew 42% from last year’s first quarter.
Mobile bookings increased 31% to $139 million and made up 76% of total bookings. Zynga had 16 million average mobile daily active users and said Apple is now its biggest platform partner. The game maker had 19 million total average daily active users and 3 million active daily web users.
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Tonight’s earnings call marks the first one for Chief Executive Frank Gibeau, who was named to the post in March.
“Since joining, the biggest surprise for me has been how much operating leverage we have across the company, which we can unlock with improved planning, more focused execution and cost control,” said Gibeau in a statement. “That means putting in place more disciplined, consistent development practices and more cross team collaboration. Over the long term, there’s no reason why Zynga’s margins can’t be more in line with its peers.”
Zynga guides for Q2 loss
Zynga management expects to lose between 2 and 3 cents per share in the second quarter and post revenue of $170 million to $180 million. Wall Street expects breakeven results on $170.4 million in revenue.
Zynga shares surged in after-hours trades, climbing by as much as 11.74% to $2.57.