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Zynga Q2 Loss Widens

(RTTNews) - Zynga Inc. (ZNGA) reported that its second-quarter net loss widened to $150.30 million or $0.16 per share from $55.83 million or $0.06 per share in the prior year.

Quarterly revenue was $452 million, up 47% year-over-year, and bookings of $518 million, up 38% year-over-year.

The company expects a net loss of $160 million compared to net income of $230 million in third-quarter 2019, which included a one-time gain of $314 million related to the sale of our San Francisco headquarters building.

In the third-quarter, the company expects revenue of $445 million, up $100 million or 29% year-over-year, and bookings of $620 million, up $225 million or 57% year-over-year.

The company raised its full year 2020 guidance to $1.8 billion in revenue, up $110 million versus prior guidance and 36% year-over-year, and $2.2 billion in bookings, up $360 million versus prior guidance and 41% year-over-year.

In 2020, the company expects a net loss of $550 million, $200 million higher than prior guidance of $350 million, primarily due to the acquisition of Peak and its resulting impact on the net increase in deferred revenue, amortization of acquired intangibles and stock based compensation, partially offset by income tax benefits and operating contribution from the acquired titles.

The company has entered into an agreement to acquire Istanbul-based Rollic, developer and publisher of a portfolio of popular hyper-casual games that have collectively been downloaded more than 250 million times.

Following the anticipated close of this transaction on October 1, 2020, Rollic will meaningfully increase audience and grow advertising business. The company's guidance does not currently include any contributions from Rollic.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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