Zynga shares climb after ‘better than expected’ results

Business News

Zynga posted earnings for its most recent quarter today, and the big news is that the company reported a profit for the first time in well over a year.

Zynga reports earning of $5.1 million (GAAP) in profits (on $209 million in revenues).

Revenue rose 15% and bookings were up 20% overall. Mobile revenue now makes up 86% of the total, vs. 76% a year ago. Mobile bookings make up 87% of the total (vs. 78% last year).

In player metrics, average daily active users rose 17% to 21M (19M mobile DAUs, up 28%; 2M Web DAUs, down 32%). Average monthly active users rose 32% to 80M (71M mobile, up 45%; 9M Web, down 23%).

Average daily bookings per average DAU inched up 2% to $0.109. Average monthly unique payers rose 33% to 1.2M, and payer conversion rose 28% to 2.3%.

Operating cash flow was its best in five years, at $37.8M.

For Q3, it’s guiding to revenue of $210M (above an expected $207M), bookings of $205M, net income of $7M and EBITDA of $30M (above consensus for $20M).

Statement from Zynga’s Chief Executive Officer Frank Gibeau.

We had a great first half of the year, beating our Q2 guidance on the top and bottom line and posting our best revenue and bookings performance in four years. Our forever franchises continue to flourish, and today we have the strongest mobile portfolio in company history. We’re also pleased with our mobile momentum, and in Q2, we delivered our highest mobile user pay revenue and bookings. Our mobile audience has also increased, up 28% year-over-year, now at 19 million average mobile DAUs. Our operating cash flow is the best we’ve generated in five years and, this past quarter, we reached profitability, achieving net income of $5.1 million,” said Frank Gibeau, CEO of Zynga.