Zynga showed record quarterly revenue, earning $ 503 million

Zynga has published a report for the third fiscal quarter of 2020, which in many ways became a record for it. During this period, the publisher earned $ 503 million, not least thanks to the studios purchased earlier.Key data for the third quarter

revenue increased by 46% year—on-year and amounted to $503 million (including deferred income – $628 million);

• 96% of the publisher’s total revenue came from mobile.
• Zynga’s main hits like CSR Racing and Toon Blast generated 71% of revenue, and another 20% came from social casinos;most of the company’s revenue came from the United States — $312 million.
• At the same time, the publisher reported record international revenue, which in the third quarter amounted to $ 191 million.;the company reported a net loss of $122 million (while Zynga ended the third quarter of 2019 with a profit of $230 million).
• Financial losses are largely due to the fact that during the reporting period the publisher had to pay more taxes and make more payments to the absorbed studios;The MAU of Zynga games grew by 23% year-on-year and amounted to 83 million players.
• This is the company’s best result in six years.Distribution of revenue by geography in the third fiscal quarter 

Third quarter results by games

The main growth drivers for the publisher were Toon Blast and Toy Blast, as well as Empires & Puzzles and Merge Magic!;

• the above projects were developed by studios that Zynga bought at the time.
• Among them are Small Giant Games, Gram Games and Peak Games (the latter company acquired for $ 1.8 billion);Rollic projects, which the company acquired for $168 million, were not included in the financial report for the third quarter. Zynga expects that in the future the games of the hyper-casual publisher will also contribute to an increase in revenue;
• CSR Racing has shown record quarterly revenue thanks to various events, including cooperation with NASCAR;
• On September 23, Zynga released the match-3 game Harry Potter: Puzzles & Spells.
• The company reported a strong start, but did not provide specific figures.Growth chart of DAU and MAU of Zynga games

Forecasts for the future

In the fourth quarter, Zynga expects revenue of $570 million, and revenues for the entire fiscal year should be $1.93 billion (46% more in annual terms).

Now the publisher is developing several casual games on “Star Wars”, and a number of titles like FarmVille 3 and Puzzle Combat are at the softlonch stage. Zynga will also continue to develop in the genre of construction simulators, working on several prototypes.

In addition, the publisher commented on the new rules regarding IDFA, which will come into force next year. According to CEO Frank Gibeau, they are currently working with Apple on this issue and will be able to find other effective ways to attract users in the future.

Also on the topic:

• Zynga announced the closure of FarmVille 11 years after the launchApple has postponed the introduction of a new IDFA policy
• Zynga: “We can work from home forever if needed”
• Is there any news?