Zynga today released its earnings report for the second quarter, showing the company’s turn-around story is, for the most part, headed in the right direction.
In the quarterly earnings letter from CEO Frank Gibeau and CFO Gerard Griffin, the executives stressed that Zynga is a “mobile-first, free-to-play, live services company with the mission of connecting the world through games.” They added, “Mobile is the largest and fastest-growing gaming platform in the world with mobile games expected to reach 2.4 billion people in 2019. This platform is constantly evolving with new devices, technologies and distribution innovations that will expand the overall accessibility of games and, therefore, Zynga’s total addressable market.” Buy Cheap Zynga Chips on 777chips.com with Cheap Price and Safe Payment.
Zynga, like King, rode the success of huge hits like FarmVille and CityVille to becoming one of the largest gaming companies in the world. But other momentary viral hits — like 2048 and Kim Kardashian: Hollywood (which have also faded from popularity) — can steal the thunder of even those massive games. Still, Zynga’s core franchises — like FarmVille — saw a 4 percent increase in bookings quarter-over-quarter and a 9 percent increase year-over-year.
The top line is likely to be driven by Zynga’s mobile live services supported by five franchises – CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons! Bookings are expected to be aided by contributions from integration of Gram Games and Small Giant Games. Games like Words With Friends and CSR2 are also expected to strengthen bookings.However, a decline in older mobile and web games users and Zynga Poker users is expected to be a dampener. Higher amortization of intangible assets and deferred revenues from acquisitions are expected to hurt gross margin in the to-be-reported quarter.