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Zynga Stock Slips After Falling Short of Q1 Street Expectations

Published 09/05/2022, 21:35
Updated 09/05/2022, 22:11
©  Reuters Zynga Stock Slips After Falling Short of Q1 Street Expectations
ZNGA
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  • 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
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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