- Zynga records $433 million in quarterly bookings versus $418 million expected.
- Zynga says it expects $1.75 billion in bookings in fiscal 2020 versus the estimate of $1.73 billion.
- Zynga's total revenue increased by 62.6% in the fourth quarter.
American social game developer, Zynga Inc., declared on Wednesday to have beaten the Wall Street estimate for bookings in the recent quarter. The company cited new titles like “Game of Thrones Slots Casino”, and “Merge Magic!” to have contributed to its quarterly success.
In the fourth quarter, total bookings for Zynga were valued at $433 million. According to Refinitiv, analysts had expected the company to note a significantly lower $418.8 million in quarterly bookings.
Zynga Is Focused On Winning The Mobile Gaming market
Bookings indicate virtual goods sales within the games like currency or lives. Zynga is most popular for its “FarmVille” title. Via multiple licensing agreements and acquisitions, the company has been focused on creating its dominance in the mobile gaming market that has recently been growing at a fast pace.
Zynga also announced on Wednesday that it now expects bookings worth $1.75 billion in fiscal 2020. Developer’s own estimate came out marginally higher than the experts’ forecast of $1.73 billion.
The company has also improved its investments in marketing the core franchises like “Merge Dragons!” and “Empires & Puzzles” amidst the mobile versions of big-budget titles like “Need for Speed: No Limits” and “Call of Duty: Mobile” slowly expanding their grasp over the market.
Zynga’s quarterly sales as well as the marketing expenses printed a massive 90% gain in the quarter and were reported at $127.7 million. The average for Zynga’s mobile active users (daily) saw a 2% decline in the fourth quarter as compared to the same quarter last year and was recorded at 20 million in Q4. The drop was attributed to fewer users in older titles like “Words with Friends” and “Zynga Poker”.
Zynga’s Total Revenue Increased By 62.6% In The Fourth Quarter
At $404.5 million, Zynga’s total revenue noted a remarkable growth of 62.6% in the recent quarter. Analysts, however, were expecting the company to register an even higher $418.56 million in the fourth quarter.
Zynga also generates revenue from advertisements that are displayed on a wide range of its games (free to play). Advertisements driven revenue posted an 11% increase in the fourth quarter and made up 19.7% of the company’s total revenue in the recent quarter.
In terms of quarterly net loss, Zynga accentuated $3.5 million in the fourth quarter versus a net profit valued at $559,000 in the recent quarter.
Zynga has gained around 10% in the stock market in 2020 so far. The stock printed an annual gain of more than 50% in 2019.