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Technology Stocks : Zynga, Inc.
ZNGA 10.36+1.4%Jan 21 3:59 PM EST

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From: Glenn Petersen11/4/2020 5:39:16 PM
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Zynga shares dip on loss despite record revenue

Published: Nov. 4, 2020 at 4:10 p.m. ET
By Jon Swartz
MarketWatch

Zynga recorded its best average mobile daily-active users (31 million) and monthly-active users (83 million) in six years

Zynga Inc. shares were down 5% in after-hours trading Wednesday after the online-gaming company reported record third-quarter revenue that further illustrated its popularity during the pandemic but a growing loss.

The company reported a loss of $122 million, or 11 cents a share, compared with net income of $230 million, or 24 cents a share, in the year-ago quarter. (Last year, Zynga benefited from the sale of its building in San Francisco.)

Revenue soared 46% to a record $503 million from $345 million a year ago. Bookings, a key indicator of Zynga’s business, jumped 59% to $628 million.

The company also offered fourth-quarter revenue guidance of $570 million, and raised guidance for the full fiscal year.

“People found interactive entertainment pretty compelling, especially in mobile use,” Zynga Chief Executive Frank Gibeau told MarketWatch in a briefing before the results were announced. “There has been a huge amount of discovery, particularly in mobile.”

Underscoring its popularity, Zyng ZNGA, +3.78% a recorded its best average mobile daily-active users (31 million) and monthly-active users (83 million) in six years. Gibeau cited widespread playing of games such as “Words With Friends” and “CSR2.”

Zynga results were generally in line with Wall Street estimates. Analysts surveyed by FactSet had expected a loss of 13 cents a share on revenue of $627 million.

Zynga shares are up 61% this year as it continues to benefit from millions of Americans staying at home because of the coronavirus pandemic. The broader S&P 500 index SPX, +2.20% has improved nearly 7% in 2020.

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