Zynga's game is on: Record sales and bookings push stock up 5% - MarketWatch

Zynga Inc.’s stock climbed 5% in extended trading Wednesday after the gaming company reported a surge in revenue and bookings.

Zynga ZNGA, -1.50% said revenue skyrocketed 52% to $616 million, though analysts polled by FactSet were expecting $679 million. Just as important, Zynga recorded quarterly bookings of $699 million, up 61% year-over-year.

“We continue to see gains from customers playing games from home,” Zynga Chief Executive Frank Gibeau told MarketWatch in a phone interview. “In an unprecedented year, we delivered the highest quarterly revenue and bookings in Zynga’s history.”

Average mobile daily active users surged 77% to 36 million as home-bound consumers looked for entertainment options during a deadly pandemic — an enduring trend that has benefited other videogaming companies such as Electronic Arts Inc. EA, -1.03%, Take-Two Interactive Software Inc. TTWO, -0.24% and Activision Blizzard Inc. ATVI, +0.03%.

The San Francisco-based company also profited from strength in mobile live services and, in particular, the popularity of five titles — “CSR Racing 2,” “Words With Friends,” “Zynga Poker,” “Empires & Puzzles” and “Merge Dragons!”

Additionally, contributions from Rollic’s hyper-casual games portfolio and the rollout of “Harry Potter: Puzzles & Spells” helped expand Zynga’s gaming portfolio and buttressed its international audience.

Zynga shares are up 65% over the past 12 months, while the broader S&P 500 index SPX, -0.03% is up 16% in the past year.

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https://www.marketwatch.com/story/zyngas-game-is-on-record-sales-and-bookings-in-q4-11612991869

2021-02-10 21:17:00Z
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