Archive for the ‘Zyngsa’ Category

Zynga Acquires Another Company and Has A Good Second Quarter In 2021

August 6, 2021

Zynga announced its second-quarter financial results, continuing the company’s twin trend of revenue growth and acquisitions.
StarLark, the studio behind Golf Rivals, has joined the fold. Zynga acquired the game and its developer from Beijing-based Betta Games for $525 million in cash and stock.
With Golf Rival, Zynga acquires a talented team with the proven ability to create a global hit, and expands its international footprint by opening a studio in China,” Zynga CEO Frank Gibeau said.
“Golf Rival has quickly grown to become the second-largest mobile golf game in the world, with 6 million downloads in 2021 alone. Zynga and StarLark are well positioned to expand Golf Rival along with additional projects in early development.”
Zynga also announced that its last big acquisition, Chartboost, closed yesterday, though the company doesn’t expect it to contribute significantly to revenue and bookings until next year.
In its second quarter, Zynga reported revenues of $720 million, a 50 percent increase, and bookings of $712 million, a 37 percent increase. Revenues were well above the $720 million it forecast after its first quarter, but bookings were barely above guidance.
Zynga’s bottom line, however, was much better than expected. Zynga’s net income was $28 million, which is a considerable improvement over last year’s $150 million loss and higher than the $30 million forecast.
Gibeau and Zynga CFO Ger Griffin wrote to shareholders that the company has noticed “choppiness” in its business recently that is attributed to both “the great reopening” and Apple’s recent privacy changes, which require users to consent to app tracking.
In the early part of 2021, as communities began to reopen and reduce their COVID-19 restrictions, we saw softness in our bookings sparked by a decline in the number of players who installed our games,” the executives said.
In addition, Apple’s privacy changes increased the cost of acquiring our players at the same time. As a result, we scaled back our [user acquisition] spend to maintain target returns, resulting in fewer players installing our games.”
For the quarter, Zynga reported 205 million mobile monthly active users, nearly triple the 70 million it reported for the second quarter of last year. Meanwhile, mobile daily active users have nearly doubled from 22 million to 41 million.
On the other hand, mobile bookings for each daily user are down 26% year-over-year to $0.183.
Toon Blast, Toy Blast, and Harry Potter: Puzzles & Spells were credited with driving growth, but Merge Magic and Merges Dragons are declining. The company projects declines in those games during the current quarter and throughout the year.
Farmville 3, the company’s upcoming game, will not arrive until the fourth quarter of this year. On top of that, Zynga will have to operate without the release of Farmville 3.
Zynga expects revenue to increase 32% to $665 million in the third quarter, bookings to increase 5% to $660 million, and a net loss of $110 million.
While preparing for the departure of its San Francisco offices, the company plans to record a charge of approximately $82 million.
Due to the ongoing evolution of our workplace model, we are seeking to optimize our office footprint in the Bay Area to meet our current needs and enhance our operating leverage,” Griffin said. “Consequently, we plan to sublet our existing office space in San Francisco.”

You can play Call of Duty: Warzone with EagleFly at