Revenue and Bookings Ahead of Guidance
Largest Annual Mobile Audience Ever
Highest Annual Revenue and Bookings in Zynga History
Strong Quarterly and Annual Operating Cash Flow
SAN FRANCISCO-Monday 14 February 2022 [ AETOS Wire ]
(BUSINESS WIRE) -- Zynga Inc. (NASDAQ: ZNGA) today released financial results for the fourth quarter and full year ended December 31, 2021.
“Our strong Q4 results capped off our record 2021 performance where we delivered our highest annual revenue and bookings ever, while reaching the largest mobile audience in Zynga history,” said Frank Gibeau, CEO of Zynga. “I am proud of our team’s execution across all aspects of our growth strategy including live services, new game development and investments in our advertising platform, new markets and technologies to solidify Zynga as a leading mobile-first, free-to-play live services company.”
Fourth Quarter 2021 Financial Summary
$ in millions |
| Q4’21 |
| Q4’20 |
| Variance $ |
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| Q4’21 |
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Revenue |
| $ | 695 |
|
| $ | 616 |
|
| $ | 79 |
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| 13 | % |
| $ | 675 |
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| $ | 20 |
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| 3 | % |
Change in deferred revenue & other bookings adjustments |
| $ | (31 | ) |
| $ | (83 | ) |
| $ | 52 |
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| (62 | %) |
| $ | (40 | ) |
| $ | 9 |
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| (22 | %) |
Bookings |
| $ | 727 |
|
| $ | 699 |
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| $ | 28 |
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| 4 | % |
| $ | 715 |
|
| $ | 12 |
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| 2 | % |
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Net income (loss) |
| $ | (67 | ) |
| $ | (53 | ) |
| $ | (14 | ) |
| 27 | % |
| $ | (60 | ) |
| $ | (7 | ) |
| 12 | % |
Adjusted EBITDA |
| $ | 147 |
|
| $ | 90 |
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| $ | 57 |
|
| 63 | % |
| $ | 122 |
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| $ | 25 |
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| 20 | % |
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Note: Certain measures as presented differ due to the impact of rounding.
(1) Guidance as communicated at Q3’21 earnings.
Revenue & Bookings: We achieved record Q4 revenue of $695 million, an increase of 13% year-over-year, and our best-ever quarterly bookings of $727 million, up 4% year-over-year. Online game or user pay revenue was $534 million, up 7% year-over-year, and user pay bookings were $555 million, down 5% year-over-year. Advertising & other revenue was a quarterly record of $161 million, up 37% year-over-year, and advertising & other bookings were an all-time best of $171 million, up 46% year-over-year.
Audience Metrics: Average mobile daily active users (DAUs) were 37 million, up 3% year-over-year, and average mobile monthly active users (MAUs) were 184 million, up 38% year-over-year. Mobile average bookings per mobile DAU (ABPU) of $0.204 decreased by 1% year-over-year.
Costs & Expenses: Cost of revenue was $260 million or 37% of revenue, compared to 41% of revenue in the year-ago quarter. Non-GAAP cost of revenue was $194 million or 27% of bookings, down from 28% of bookings in the year-ago quarter. GAAP operating expenses were $437 million, representing 63% of revenue and an improvement from 64% in the year-ago quarter. Non-GAAP operating expenses of $357 million represented 49% of bookings, versus 47% in the year-ago quarter.
Profitability & Cash Flow: Net loss was $67 million, compared to $53 million in the year-ago quarter, and adjusted EBITDA was $147 million, up $57 million year-over-year. We generated operating cash flow of $158 million, down $48 million year-over-year.