First-quarter financial results for Zynga’s 2022 performance through March 31 showed an increase in revenue, active users, and more, with the company attributing its success to its performance strategy and hyper occasional acquisitions..
Zynga’s revenue reached $691 million in the first quarter of this year, marking a 2% year-over-year increase, up $11 million from the same period in 2021.
Representing 61% of Zynga’s revenue, GAAP operating expenses were $424 million, down from 62% in the year-ago quarter. The non-GAAP measure was slightly lower, however, now at $549.4 million, down from the previous $560.9 million.
Ebb and flow
In addition to Zynga’s higher revenue this quarter, the company’s costs were lower, with approximately $676 million spent, compared to approximately $686 million through March 2021. However, the loss in net income has was $1.5 million higher this year at £24.5 million, and depreciation and amortization was $69.2 million compared to $56.5 million in Q1 last.
So far, bookings have been weaker in 2022 than in 2021, falling from $720 million to $695 million between the first quarters, and Zynga’s total current assets at the end of the first quarter s was $1.27 billion, down from $1.65 billion in the fourth quarter. from last year.
Going back to the positives, the average number of daily active mobile users increased 3% year-on-year to 40 million in the first quarter, while the average number of monthly users increased 27% year-on-year to 209 million.
Acquisition-related costs eclipsed those of the same period last year, rising from $1.5 million in the first quarter of 2021 to $12.5 million this quarter due to the completed acquisitions of Small Giant Games and Rollic . Of course, Take-Two’s $12.7 billion acquisition of Zynga itself is currently in the works.
“We started 2022 with a strong quarterly performance, delivering our highest-ever advertising revenue and bookings in the first quarter, driven by our hyper-casual portfolio,” said Zynga CEO Frank Gibeau.
“Through continued execution of all aspects of our multi-year growth strategy, including live services, new game development and investment in our advertising platform, new markets and technologies, we are strengthening our position as a leading mobile-first, free-to-play live services company.”
Take-Two recently revealed its funding strategy for its acquisition of Zynga, which was the largest sum the industry had ever seen until Microsoft announced its acquisition of Activision Blizzard, valued at nearly $70 billion. dollars.