Zynga reveals sharp Q1 gaming revenue increase

Zynga reveals sharp Q1 gaming revenue increase

Zynga reveals sharp Q1 gaming revenue increase

Gaming giant Zynga published its Q1 results for this year as the firm reported a huge boost in gaming revenue and general revenue, however it also made a $23 million net loss during this period.

Revenue from online gaming went up to $557 million, a whopping 61.7% increase from last year.

Total revenue after adding revenue from advertising and other revenue ($123.3 million) brings a 107% rise from Q1 of 2020, pushing total revenue up to $680.3 million. This showcases an impressive 68.4% rise. Thanks to this growth, the gaming giant is now anticipating closing off this year with $2.7 billion in revenue.

On the other hand, the firm’s business expenses came up to a staggering $685.8 million, which is 38.4% higher compared to the same period last year. Cost of revenue also came up to $260.7 million with marketing costs up to $248.7 million, representing a 78% and 101.8% increase respectively.

The expenses that went into research and development amounted to $140.7 million, meaning that total costs stood at $685.8 million, representing a 38.4% increase year-on-year and leading the firm to a $5.5 million loss. Interest income was at $1.7 million, with interest expense driving the company into more debt and costing it a hefty $14.7 million. Its total net loss stood at $23 million, which is down 56.6% when compared to last year.

Zynga released a statement where it mentioned:

“Our tremendous quarterly revenue and bookings were driven by breakout performances from our live services, new games and hyper-casual portfolio. In addition, we are making significant progress on our cross-platform play initiative.”

Even though 2020 was a rough year for the firm and the industry, Zynga witnessed a revenue increase year-on-year of almost 50%. This morning, Zynga also revealed its acquisition of Chartboost, the ad platform, in a $250 million.

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