Zynga earned $1.32 billion for the year and avoided losses thanks to the sale of the office
Zynga reported for the fourth quarter of 2019 and for the year itself. She has record revenue for both periods. However, the publisher was barely able to avoid annual losses.
Merge Magic!
The company published the report here.
Indicators for the 4th quarter
Revenue for the quarter rose above the projected $365 million. The indicator amounted to $404 million and showed an increase of 63% in annual terms.
Receipts (bookings) rose 62% to $433 million. Both indicators are again record highs in the history of Zynga.
There are several reasons for success:
- the rise of revenue and receipts of its main hits: Words With Friends, as well as midcore Empires & Puzzles from Small Giant Games;
- a great start to Merge Magic! and a good income of the game for its first full quarter.
Nevertheless, Zynga is showing losses again. It lost $3.5 million this quarter. This is not the first time Zynga has suffered financial losses with record revenues.
Things are no better with her and with DAU/MAU. If the first indicator was recorded by 20 million users in the last two quarters, the second one gradually fell all year. In the fourth quarter, the monthly audience of Zynga mobile games reached 66 million people. The actual numbers may be even lower due to duplicate accounts: Zynga cannot track how many accounts are assigned to one player.
Indicators for the year
In 2019, Zynga released two new projects: Game of ThronesTM Slots Casino and Merge Magic!. They, together with previously released games, provided the publisher with an income of $ 1.32 billion. This year was recognized as the strongest in the history of the publisher (in terms of revenue). In annual terms, revenue grew by 46% and exceeded the early forecast of $1.28 billion.
Net receipts are also growing at a rapid pace: up to $1.56 billion, which is 61% more than the result of 2018.
Zynga listed such achievements as:
- independent release of Empires & Puzzles in Asia;
- launch of Tiny Royale battle Royale on Snap Games platform from Snapchat;
- and most importantly, the sale of the headquarters in San Francisco, for which the publisher earned $ 580 million.
The company also noted a gradual increase in revenue from abroad. Outside the US, Zynga now earns 37% of its annual revenue.
All this together allowed Zynga to remain in the black at the end of the year. The publisher’s annual profit was $42 million, which is 171% more than in 2018. Zynga’s situation could have been worse if not for the sale of the office: this allowed it to make a high profit in the third quarter and compensate for losses for the first, second and fourth.
Forecast for 2020
The company also made a forecast for the 2020 fiscal year, coinciding with the calendar year.
Zynga again expects record revenue — up to $1.6 billion. But he also predicts large financial losses — about $ 130 million, since he does not plan to sell the property again.
This year Zynga also:
- Merge Magic is waiting for its heyday!;
- predicts high earnings of the largest titles: CSR Racing, Empires & Puzzles, Merge Dragons!, Words With Friends and Zynga Poker;
- plans a soft launch of the Harry Potter IP game in the first quarter;
- plans to release Puzzle Combat and Farmville 3 by the end of the half-year.
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