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.