Zynga Beats Q1 Estimates, Monthly Users Up 24%
Game developer Zynga Thursday reported revenue of $321 million in the first quarter, up 32% from a year ago, fueled in part by its fast-growing mobile business. The company had a net loss of $85.4 million, or 12 cents per share share, in the quarter. But its adjusted earnings of 6 cents a share beat analysts forecast of 5 cents per share. Revenue also came in slightly ahead of analysts’ consensus estimate of $317 million.
During the quarter, Zynga said daily active users (DAU) increased 6% to 62 million from a year ago and monthly active (MAU) users rose 24% to 236 million. Monthly unique payers (paying customers) were up 21% to 3.5 million from the prior quarter. Both mobile and Web bookings increased on a yearly and monthly basis, with most of the growth coming on the mobile side.
Of the six games Zynga launched in the first quarter, four were for mobile platforms: Scramble with Friends, Dream PetHouse, Dream Heights, and Draw Something. The company acquired the wildly popular Draw Something title through its acquisition of its creator, OMGPop, last month.
"We're pleased with the progress that Zynga has made in the first quarter growing our audience reach 25% year over year and nearly 20% quarter over quarter. Our team did a great job launching 5 new games across mobile and web including new hits like Hidden Chronicles, Slingo and Scramble with Friends," said Zynga CEO and founder Mark Pincus, in a statement.
While advertising revenue is still only a small portion of the company’s revenue, the $28.2 million in ad sales was more than double the total in the year-earlier period. Both overall revenue and ad revenue, though, were up only 3% from the fourth quarter.