Zynga Inc (ZNGA)

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ZNGA: DELIVERED ABOVE GUIDANCE RANGE, $190.5M IN REVENUE AND $201.5M IN BOOKINGS







DELIVERED RESULTS ABOVE GUIDANCE RANGE WITH $190.5M IN REVENUE AND $201.5M IN BOOKINGS





Zynga Announces Fourth Quarter 2016 and 2016 Financial Results

February 09, 2017 16:04 ET | Source: ZYNGA INC.

Delivered Results Above Guidance Range With $190.5M in Revenue and $201.5M in Bookings

Generated Operating Cash Flow of $60M in 2016

SAN FRANCISCO, Feb. 09, 2017 (GLOBE NEWSWIRE) -- Zynga Inc. (NASDAQ:ZNGA), a leading social game developer, today announced financial results for the fourth quarter and full year ended December 31, 2016. In addition to today’s press release, a copy of our Q4 2016 Quarterly Earnings Letter, which outlines our Q4 and full year 2016 financial results and business outlook, is available on our website at investor.zynga.com. Zynga management will host a live Q&A session at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today to discuss Zynga’s Q4 and full year 2016 performance.

“We had a strong Q4 and made significant progress this year in our turnaround and we’re encouraged by the fundamentals of our business as we head into 2017. We’re pleased with the performance of our live services and the quality of our new releases as we improved profitability and continued to sharpen our operating model,” said Frank Gibeau, CEO of Zynga. “We rallied around our company mission to connect the world through games and create the highest quality social experiences for our players. Our renewed commitment to our live operations is paying off with Zynga Poker and Words With Friends delivering outstanding revenue and bookings. We improved our quality and predictability, launching all games in our 2016 slate including two new NaturalMotion titles – CSR2 and Dawn of Titans – which we expect to be long term mobile franchises for us.”

“In Q4 we delivered another strong quarter with GAAP revenues of $190.5 million, above the high end of our guidance range, up 3% year-over-year and GAAP Net Loss was $35.4 million, below our guidance range but an improvement of 31% year-over-year. Our topline performance was driven by better than expected mobile bookings from Zynga Poker and CSR2, offset by correspondingly higher revenue deferrals. GAAP operating expenses were $162.4 million, down 8.5% year-over-year. Non-GAAP operating expenses were $126.3 million, down 3.1% year-over-year and in line with our expectations resulting in higher operating leverage in the quarter. Our Adjusted EBITDA, which includes the change in deferred revenue, was $10.6 million, $1.4 million below our guidance range, due to the negative impact of higher revenue deferrals. Overall, our strong business performance delivered operating cash flow of $27.7 million, up $24.3 million year-over-year,” said Ger Griffin, CFO of Zynga.

Fourth Quarter 2016 Financial Highlights

GAAP Revenue of $190.5 million; above the high end of the guidance range, up 3% year-over-year and up 4% sequentially
GAAP Operating Expenses of $162.4 million, down 9% year-over-year and down 2% sequentially
GAAP Net Loss of $35.4 million, below our guidance range but an improvement of $15.8 million or 31% year-over-year, and $6.3 million or 15% sequentially
Deferred revenue increased by $11.0 million; $6 million above our guidance
Bookings of $201.5 million; above the high end of the guidance range, up 11% year-over-year and up 2% sequentially
Non-GAAP operating expenses of $126.3 million were in line with our expectations; down 3% year-over-year and flat sequentially, driven by lower sales and marketing spend
Adjusted EBITDA, which includes the impact of changes in deferred revenue, of $10.6 million; below our guidance range primarily due to the platform fees associated with the higher revenue deferrals
Operating cash flow of $27.7 million, up $24.3 million year-over-year and up $6.7 million sequentially

2016 Annual Financial Highlights

GAAP Revenue of $741.4 million, down $23.3 million or 3% year-over-year
GAAP Net Loss of $108.2 million, an improvement of $13.3 million or 11% year-over-year
Deferred revenues increased $13.1 million compared to a release of $64.8 million in 2015 representing a $77.9 million swing year-over-year
Bookings of $754.5 million, up $54.6 million or 8% year-over-year
Adjusted EBITDA, which includes the impact of changes in deferred revenue, was $48.8 million, down $33.0 million or 40% year-over-year with strong operational performance in 2016 more than offset by the swing in deferred revenue year-over-year
Operating cash flow of $60.0 million, a $104.5 million increase compared to 2015 and our best performance since 2012


MOBILE HIGHLIGHTS

MOBILE REVENUE OF $154.7 MILLION OR 81% OF OVERALL REVENUE; UP 20% YEAR-OVER-YEAR AND UP 6% SEQUENTIALLY

MOBILE BOOKINGS OF $167.1 MILLION OR 83% OF OVERALL BOOKINGS; UP 25% YEAR-OVER-YEAR AND UP 3% SEQUENTIALLY

AVERAGE MOBILE DAILY ACTIVE USERS (MOBILE DAUS) OF 16 MILLION; UP 5% YEAR-OVER-YEAR AND FLAT SEQUENTIALLY

APPLE AND GOOGLE CONTINUE TO BE OUR TWO LARGEST PLATFORM PARTNERS FOR ONLINE GAME BOOKINGS

Source:

https://globenewswire.com/news-release/2017/02/09/915787/0/en/Zynga-Announces-Fourth-Quarter-2016-and-2016-Financial-Results.html