rodgissinger

Zynga raised its full-year guidance after the strong second-quarter results

rodgissinger | 29 August, 2019 23:59

Mobile game publisher saw its shares surge after it beat expectations during its second quarter. The San Francisco-based company earned $306 million in revenue during the second quarter, up 41% year-over-year. This came out far ahead of management’s $280 million target, while the net loss was significantly lower than the target loss of $70 million. Bookings, which also beat guidance, were $376 million, up 61% year-over-year.

Both Zynga’s revenues and bookings were ahead of Wall Street estimates, and the stock is up around 1 percent in after-hours training. Investors are likely pleased to see that the developer has a lot of diversity in its strategy in the moment. Empires & Puzzles and Merge Dragons both hit record revenues during Q2. The long-running hit Words With Friends had its best Q2 for mobile revenue and bookings ever. And other familiar Zynga brands, like CSR2, Zynga Poker, and Hit It Rich Slots are all growing as well. In addition, if you are in need of Cheap Zynga Poker Chips, you can visit our website 5mmo.com.

Zynga's DAUs grew just 1% year over year and its MAUs declined 10% year over year despite the addition of games  Empires & Puzzles and Merge Dragons! as performance drivers. The relatively uninspiring DAU and MAU numbers stemmed from declines for legacy franchises Zynga Poker and Words With Friends. However, Zynga Poker performed ahead of company expectations, Words With Friends posted its best-ever second-quarter revenue on mobile, and overall results combined with some promising business moves overshadow the less-than-thrilling user stats.

Following the strong second-quarter results, the company once again raised its full-year guidance. Zynga is now targeting revenue of $1.24 billion for 2019, up $40 million from the company's previous guidance and representing an increase of 37% year over year. It also raised its bookings guidance to $1.5 billion, up $50 million from its previous target and representing an increase of 55% year over year. For the third quarter, Zynga expects to record revenue of $325 million, up 39% year over year, and bookings of $380 million, up 53% year over year.

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