Zynga Just Reported Record Revenue in Q3

American social game developer Zynga reported third quarter financial results revealing record revenue.

For the quarter, the company reported a record $503 million in revenue which represented a growth of 46% YOY. Bookings at $628 million was a growth of 59%. The company also said it had its best mobile daily active user and monthly active numbers in six years at 31 million and 83 million respectively.

While all this was roses, the company did however also report a net loss of $122 million. This compares to a net income of $230 million in the quarter a year ago.

It was also during the third quarter that Zynga closed its acquisition of Istanbul-based hyper-casual game publisher Rollic. Comapny CEO Frank Gibeau has said it is “fully integrated at this point from an operating standpoint,” but the company won’t start including Rollic in its user numbers until the next quarter.

“We are well-positioned for further M&A,” he also added.

On the earnings call the chief executive remarked, “We continue to live in unprecedented times as the human cost of the COVID-19 pandemic weighs on so many different aspects of our lives. Over the past several months, we have been humbled to see more people turn to our deeply total game experiences for entertainment and a sense of community.”

“We are also proud of our teams as they continue to work from home effectively and deliver exciting new content to our players, including the successful launch of Harry Potter: Puzzles & Spells. In Q3, we delivered strong results ahead of our guidance across all key financial measures, including our highest ever quarterly revenue and bookings with revenue of $503 million, up 46% year over year, and bookings of $628 million, up 59% year over year. We also delivered our best Q3 operating cash flow of $113 million, up 65% year over year. Today, we are raising our full-year 2020 guidance, which Ger will tell you more about later on the call,” he continued.

“Execution of our multiyear growth strategy has driven our tremendous results to date and generated positive momentum across our business. The foundation of our multiyear growth strategy is our life services. By delivering a steady cadence of innovative bold beats, we are able to drive recurring growth across our highly diversified portfolio of forever franchises, as well as our social slot and casual cards titles. Specifically, in Q3, our Social Slots portfolio marked its best revenue and bookings quarter in Zynga history, led by breakout performances by Hit It Rich! Slots and Game of Thrones Slots Casino,” the CEO said.

“We also saw record Q3 performances from Words With Friends, CSR2, our Casual Cards portfolio, and Empires & Puzzles. These outstanding results are a great example of the enduring nature of our forever franchises at Zynga. In July, we successfully integrated Peak, and our teams are working extremely well together. Toon Blast and Toy Blast were strong contributors in their first full quarter at Zynga and key drivers of our year-over-year top-line growth,” he added.

Before the earnings release, Gibeau had told Anthony Ha of Yahoo! Finance that although growth has become more normal after the pandemic, it caused “that huge jump” in usage during the late spring and early summer. He said, “Engagement remains elevated and monetization remains elevated. Folks that discovered mobile gaming for the first time returned to it and kept doing it.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.