LONDON, UK / ACCESSWIRE / March 08, 2018 / Active-Investors.com has just released a free earnings report on Zynga Inc. (NASDAQ: ZNGA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ZNGA. The Company reported its fourth quarter and full fiscal year 2017 operating and financial results on February 07, 2018. The gaming Company achieved its best revenue and bookings performance in nearly 5 years, driven mainly by mobile revenues and mobile bookings. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Zynga most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, Zynga's revenues jumped 22% to $233.3 million compared to $190.5 million in Q4 2016, and was above its guidance by $18.3 million. The Company's bookings were $223.8 million in the reported quarter, up 11% compared to $201.5 million in the prior year's same quarter. Zynga's better than expected performance was driven by the successful launch of "Words With Friends 2', as well as a partial month contribution from the Company's acquisition of Peak Games' casual card game studio. Zynga's revenue numbers topped analysts' estimates of $214.4 million.
Zynga achieved a net income of $12.93 million, or $0.01 per share, in Q4 2017 compared to a net loss of $35.43 million, or $0.04 loss per diluted share, in Q4 2016.
Zynga's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) soared 339% to $46.5 million in Q4 2017 compared to $10.6 million in Q4 2016, and was above its guidance by $11.5 million.
For the full fiscal year 2017, Zynga delivered total revenues of $861.4 million, up 16% compared to $741.4 million in FY16; and bookings of $853.8 million, up 13% on a y-o-y basis. This top-line growth was driven by the mobile performance of the Company's forever franchises, which more than offset the headwinds Zynga was facing in its web and older mobile games.
Zynga reported a net income of $26.63 million, or $0.03 per diluted share, in FY17 compared to a net loss of $108.17 million, or $0.12 loss per diluted share, in FY16.
Operating Results
During Q4 2017, Zynga's mobile revenues surged 32% to $203.6 million on a y-o-y basis. The Company's mobile bookings advanced 18% to $197.0 million on a y-o-y basis in the reported quarter. For Q4 2017, Zynga's mobile user pay revenues surged 31% on a y-o-y basis, and mobile user pay bookings were up 12% compared to the year ago corresponding period.
For Q4 2017, Zynga's advertising revenues of $59.0 million and advertising bookings of $59.9 million were up 20% and 21% y-o-y, respectively. The Company's advertising revenues represented 25% of its total revenues and 27% of its total bookings in the reported quarter compared to 26% of total revenues and 25% of total bookings in Q4 2016.
During Q4 2017, Zynga significantly increased its mobile audience to 20 million average mobile daily average users (DAUs) from 16 million average mobile DAUs in Q4 2016, reflecting a growth of 24% on a y-o-y basis, primarily driven by Solitaire and Zynga Poker. The Company's mobile average monthly average users (MAUs) soared 45% to 76 million in the reported quarter from 53 million in the year earlier same quarter. This represented Zynga's highest mobile average DAUs in 4 years.
Cash Matters
Zynga had a net release of deferred revenues of $9.5 million in Q4 2017 compared to its guidance of a net release of $5.0 million. The y-o-y change in deferred revenues accounted for $20.5 million of the y-o-y increase in revenues, net income, and adjusted EBITDA.
Zynga delivered an operating cash flow of $26.4 million in Q4 2017, down $1.4 million on a y-o-y basis, due to an increase in accounts receivables, partially offset by an improved profitability. For FY17, the Company recorded an operating cash flow of $94.6 million, up 58% y-o-y and which was its best performance since 2012.
Outlook
For Q1 2018, Zynga is forecasting revenues of $200 million and bookings of $210 million. The Company is expecting a net loss of $5 million and an adjusted EBITDA of $20 million for the upcoming quarter.
Stock Performance Snapshot
March 07, 2018 - At Wednesday's closing bell, Zynga's stock advanced 3.38%, ending the trading session at $3.67.
Volume traded for the day: 14.10 million shares, which was above the 3-month average volume of 12.24 million shares.
Stock performance in the last month - up 4.56%; previous six-month period - up 0.27%; and past twelve-month period - up 33.94%
After yesterday's close, Zynga's market cap was at $3.12 billion.
Price to Earnings (P/E) ratio was at 141.15.
The stock is part of the Technology sector, categorized under the Multimedia & Graphics Software industry. This sector was up 0.8% at the end of the session.
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