Zynga beats estimates, boosted by OMGPOP acquisition
Zynga Inc posted first-quarter revenue of USD 321 million, beating Wall Street expectations on the back of strong performances from new titles.
In late March, Zynga made its biggest acquisition ever by paying USd 180 million in cash to acquire OMGPOP, a relatively obscure New York-based company that shot to prominence about six weeks ago when its "Draw Something" game became a sensation in the mobile market.
"Even though it was during the last 10 days of the quarter, Zynga bought it when OMGPOP was generating a lot of revenue," saidSt erne Agee analyst Arvind Bhatia.
On an adjusted basis, Zynga reported a quarterly profit of USd 47 million, or 6 cents a share. That compares with earnings of USD 16.7 million a year earlier.
The adjusted figures exclude USD 133.9 million of stock-based expenses paid during the quarter by the company, which went public in December. On an non-adjusted basis, Zynga swung to a loss of USD 85 million.
The San Francisco-based company said monthly active users increased by 24%, to 292 million, Bookings increased to USD 329 million. That metric represents the cash Zynga pockets upfront when people spend money on virtual items in its games such as tractors, houses or poker chips.
Analysts on average were expecting revenue of USD 317.25 million, according to Thomson Reuters I/B/E/S. Zynga shares were down 4% in extended trading following the results.