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Zynga smashed both records and its own predictions in its Q4 and annual figures. The headline numbers are impressive. Q4 booking were up 61 per cent year on year, hitting $699m. While across the year the company hit record bookings of $2.27bn, up 45 per cent year on year.
Coming back to Q4 the company saw record performances from Empires and Puzzles and CSR2, as well as its social casino titles. It also launched Harry Potter: Puzzles and Spells, which “continues to grow momentum,” according to a statement.
It also noted advertising performance as a key area of organic growth, $117m, up 47 per cent year on year. Alongside those additional revenues that came from this being the first quarter with recent acquisition Rollic onboard.
Acquisitions also feature in its highlights for the year, with both Rollic and Peak being key factors. Those resulted in a record cash flow of $429m (up 63 per cent year on year). In addition to $794m from a share offer in December the company now has $1.57bn on hand for acquisitions going into next year – time to tighten up your accounts and polish those presentations people!
Intriguingly, Zynga notes that it’s “actively developing several cross-platform play games.” And it specifically mentions both console and PC crossplay in that. The company has undoubtedly seen the success of Among Us and Genshin Impact, and feels it’s well positioned with “relevant licences and brands” plus “a talented developer base with strong multi-platform experience.”
In addition to that, in 2021 Zynga is looking to its self-proclaimed ‘Forever Franchises’, of which it now has eight titles, to continue performing. It has a big pipeline of games in development, including Puzzle Combat and FarmVille 3 coming over the next 12 months. It’s also looking to launch its first Star Wars title in soft launch this summer.
Despite all its success, it’s worth noting that Zynga wasn’t profitable this year, its net loss was $429m, something that it’s looking to slim down to $150m in the next financial year. For all that though, the company looks to be heading in the right direction, and it’s current p/l sheet doesn’t look to bothering analysts or investors.
