Zynga sees best mobile bookings and revenue in company history for Q2
Mobile publisher raises year-long guidance following record performances from Empires & Puzzles, Merge Dragons! and mobile Words With Friends
Zynga has announced its Q2 financial results, posting the best mobile revenue and bookings in the company's history for a single quarter and inspiring an increase in the company's full-year guidance as the company balances its net losses from two acquisitions in the previous financial year.
The company reports revenue of $306 million (up 41% year-over-year), and total bookings of $376 million (up 61% year-over-year). A number of company records were set, with Empires & Puzzles and Merge Dragons! both seeing record revenue and bookings in Q2, and Words With Friends on mobile seeing record revenue and bookings as well. Overall, the company saw the best mobile revenue and bookings in its history, and it's on track to have its best annual revenue since 2012.
Mobile revenue overall reached $287 million (up 49% year-over-year), and bookings were at $358 million (up 69% year-over-year). Mobile advertising revenue was at $64 million (up $28 million year-over-year).
All the year-over-year increases aside, Zynga still posted a net loss of $56 million as the company continues to recover from the acquisitions of Merge Dragons studio Gram Games and Empires & Puzzles studio Small Giant last year. In its Q1 financials, it noted that this was due to an increase in the contingent consideration for these acquisitions as their games performed better than expected.
That said, the net loss of $56 million for Q2 was above the guidance of a loss of $70 million due to better operational performance across all games.
Looking ahead to Q3, Zynga anticipates $325 million in revenue, $380 million in bookings, and $250 million in net income, including a $305 million one-time gain on the sale of the company's San Francisco headquarters.
And thanks to its better-than-expected performance, Zynga is raising its full-year guidance to $1.24 billion in revenue, up 37% year-over-year and up $40 million from the previous guidance. Bookings guidance is for $1.5 billion, up 55% year-over-year and 50 million above the original guidance.