Zynga Posts Q4 Financial Results that Beat Its Own Guidance

On Wednesday mobile and online gaming company Zynga reported its fourth quarter financial results that blew past even what the company had been expecting.

The game publisher reported fourth-quarter revenue of $404 million, which was up 63% year over year. Bookings were $433 million, up 62%. Zynga had projected revenue of $365 million and bookings of $415 million.

Adjusted earnings before interest, tax, depreciation, and amortization, or Ebitda, for the fourth quarter was $75 million, triple the $25 million Zynga expected.

Zynga said it lost less than a penny a share in the quarter, coming in ahead of the Wall Street analyst consensus forecast for a loss of six cents a share.

In an interview with Barron’s, Zynga CEO Frank Gibeau said the fourth quarter was Zynga’s best ever, beating guidance on all measures. According to Gibeau, Zynga had a breakout quarter on advertising, with $80 million in ad revenues, up 12% from a year ago.

Gibeau additionally said the company’s live services were the primary driver of Zynga’s business in 2019, pointing to the successful recent launch of Game of Thrones Slots Casino and Merge Magic.

Looking ahead, for the first quarter Zynga is expecting revenue of $385 million, with adjusted Ebitda of $57 million, a net loss of $26 million, and bookings of $400 million.

For the full year, Zynga sees revenue of $1.6 billion, up 21%, with bookings of $1.75 billion, adjusted Ebitda of $200 million, and a net loss of $130 million.

Disclaimer: We have no position in Zynga Inc. (NASDAQ: ZNGA) and have not been compensated for this article.