- Zynga Inc (NASDAQ: ZNGA) reported first-quarter sales growth of 2% year-over-year to $691 million, missing the consensus of $745.22 million. Quarterly bookings of $695 million, down 3% Y/Y.
- Online game or user-pay revenue was $538 million (-3% Y/Y), and user pay bookings were $528 million (-11% Y/Y). Advertising & other revenue was $154 million (+24% Y/Y), and advertising & other bookings were $167 million (+35% Y/Y).
- DAUs were 40 million (+3% Y/Y), and MAUs were 209 million (+27% Y/Y). Mobile average bookings per mobile DAU (ABPU) of $0.190 were down 6% Y/Y.
- Income from operations for the quarter was $15 million, compared to a loss of $(5.5) million a year ago.
- EPS was $(0.02), below the consensus of $0.09.
- Net cash used in operating activities was $(202.7) million, versus $(163.7) million in 1Q21.
- Adjusted EBITDA was $144.4 million (+17.3% Y/Y) and the margin expanded by 280 bps to 20.9%.
- Last week, ZNGA announced that Bernard Kim, Zynga's President of Publishing, is leaving to become CEO of Match Group (NASDAQ:MTCH). To support transition efforts, Mr. Kim will remain with Zynga until May 30, 2022.
- Outlook: Zynga is not providing forward guidance due to the pending transaction with Take-Two (NASDAQ:TTWO) Interactive Software (NASDAQ: TTWO). Take-Two shares are rising by 17% in the after-hours session to $124.20.
- Price Action: ZNGA shares are trading lower by 2.08% at $7.53 during the post-market session on Monday.
- Photo via Wikimedia Commons
Read at Benzinga