We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zynga (ZNGA) Q1 Earnings Miss Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
Zynga reported a loss of 2 cents per share in first-quarter 2022, in line with the loss per share reported in the year-ago quarter.
Quarterly revenues inched up 1.6 % year over year to $691.2 million, driven by strength in demand for live services.
The Zacks Consensus Estimate for earnings and revenues was pegged at 5 cents per share and $749 million, respectively.
Total bookings came in at $695 million, down 3.5 % year over year. The consensus mark for bookings was pegged at $749 million.
In January, Zynga entered into a definitive agreement with Take-Two Interactive (TTWO - Free Report) .
Per the agreement, Take-Two Interactive will acquire all of Zynga’s outstanding shares. The acquisition, as announced, is a cash-and-stock deal, implying an enterprise of $12.7 billion.
Zynga’s online game or user-pay revenues (77.8% of total revenues) fell 3.5% year over year to $537.7 million.
Advertising and other revenues (22.2% of total revenues) increased 24.5% year over year to $153.5 million. Advertisement bookings (24.1% of total bookings) rose 35.1% year over year to $166.50 million. The upside was driven by robust growth in Zynga’s hyper-casual portfolio.
Mobile revenues (97.3% of total revenues) inched up 1.7% year over year to reach $672.2 million. Mobile bookings declined 3.4% year over year to $676 million. The upside can be attributed to solid demand for its live services.
User Base Details
In the first quarter, user-pay bookings were $528 million, down 11% year over year. The downside was caused by tougher year-over-year comparisons.
Zynga’s average mobile daily active users (DAUs) moved up 5.3% year over year to 40 million. Average mobile monthly active users (MAUs) soared 27.4% year over year to 209 million in the reported quarter.
Average mobile daily bookings per average mobile DAU (ABPU) declined 6% year over year to $0.19.
Operating Details
Non-GAAP operating expenses (52.4% of total bookings) rose 2.9% year over year to $364 million in the reported quarter due to higher investments in the company’s advertising platform, new markets and technologies
Non-GAAP research & development (R&D) and sales & marketing (S&M) expenses shot up 13% and 0.6% year over year to $93.8 million and $246.2 million, respectively. General & administrative (G&A) expenses declined 7% year over year to $24 million.
Adjusted EBITDA came in at $144.4 million compared with the year-ago quarter’s figure of $123.1 million.
Balance Sheet
As of Mar 31, 2022, Zynga had cash, cash equivalents & short-term investments of $826 million compared with $1.15 billion as of Dec 31, 2021.
Cash flow used in operating activities in first-quarter 2022 was $202.7 million compared with the year-ago quarter’s level of $163.7 million. The cash flow provided by operating activities in the previous quarter was $158.1 million.
Free cash outflow was $213 million in the first quarter compared with the previous quarter’s free cash inflow of $152.4 million and the year-ago quarter’s outflow of $165.4 million.
Zacks Rank and Stocks to Consider
Currently, Zynga carries a Zacks Rank #3 (Hold).
ZNGA shares are up 20.1% in the year-to-date period against the Zacks Gaming industry’s plunge of 35.5% and the Consumer Discretionary sector’s fall of 29.5%.
Planet Fitness shares are down 23.8% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 23.2% and the Consumer Discretionary sector’s fall of 29.4%.
SeaWorld Entertainment shares are down 14% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 23.2% and the Consumer Discretionary sector’s fall of 29.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zynga (ZNGA) Q1 Earnings Miss Estimates, Revenues Increase Y/Y
Zynga reported a loss of 2 cents per share in first-quarter 2022, in line with the loss per share reported in the year-ago quarter.
Quarterly revenues inched up 1.6 % year over year to $691.2 million, driven by strength in demand for live services.
The Zacks Consensus Estimate for earnings and revenues was pegged at 5 cents per share and $749 million, respectively.
Total bookings came in at $695 million, down 3.5 % year over year. The consensus mark for bookings was pegged at $749 million.
In January, Zynga entered into a definitive agreement with Take-Two Interactive (TTWO - Free Report) .
Per the agreement, Take-Two Interactive will acquire all of Zynga’s outstanding shares. The acquisition, as announced, is a cash-and-stock deal, implying an enterprise of $12.7 billion.
Zynga Inc. Price, Consensus and EPS Surprise
Zynga Inc. price-consensus-eps-surprise-chart | Zynga Inc. Quote
Quarter Details
Zynga’s online game or user-pay revenues (77.8% of total revenues) fell 3.5% year over year to $537.7 million.
Advertising and other revenues (22.2% of total revenues) increased 24.5% year over year to $153.5 million. Advertisement bookings (24.1% of total bookings) rose 35.1% year over year to $166.50 million. The upside was driven by robust growth in Zynga’s hyper-casual portfolio.
Mobile revenues (97.3% of total revenues) inched up 1.7% year over year to reach $672.2 million. Mobile bookings declined 3.4% year over year to $676 million. The upside can be attributed to solid demand for its live services.
User Base Details
In the first quarter, user-pay bookings were $528 million, down 11% year over year. The downside was caused by tougher year-over-year comparisons.
Zynga’s average mobile daily active users (DAUs) moved up 5.3% year over year to 40 million. Average mobile monthly active users (MAUs) soared 27.4% year over year to 209 million in the reported quarter.
Average mobile daily bookings per average mobile DAU (ABPU) declined 6% year over year to $0.19.
Operating Details
Non-GAAP operating expenses (52.4% of total bookings) rose 2.9% year over year to $364 million in the reported quarter due to higher investments in the company’s advertising platform, new markets and technologies
Non-GAAP research & development (R&D) and sales & marketing (S&M) expenses shot up 13% and 0.6% year over year to $93.8 million and $246.2 million, respectively. General & administrative (G&A) expenses declined 7% year over year to $24 million.
Adjusted EBITDA came in at $144.4 million compared with the year-ago quarter’s figure of $123.1 million.
Balance Sheet
As of Mar 31, 2022, Zynga had cash, cash equivalents & short-term investments of $826 million compared with $1.15 billion as of Dec 31, 2021.
Cash flow used in operating activities in first-quarter 2022 was $202.7 million compared with the year-ago quarter’s level of $163.7 million. The cash flow provided by operating activities in the previous quarter was $158.1 million.
Free cash outflow was $213 million in the first quarter compared with the previous quarter’s free cash inflow of $152.4 million and the year-ago quarter’s outflow of $165.4 million.
Zacks Rank and Stocks to Consider
Currently, Zynga carries a Zacks Rank #3 (Hold).
ZNGA shares are up 20.1% in the year-to-date period against the Zacks Gaming industry’s plunge of 35.5% and the Consumer Discretionary sector’s fall of 29.5%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Planet Fitness (PLNT - Free Report) and SeaWorld Entertainment , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Planet Fitness shares are down 23.8% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 23.2% and the Consumer Discretionary sector’s fall of 29.4%.
SeaWorld Entertainment shares are down 14% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 23.2% and the Consumer Discretionary sector’s fall of 29.4%.