Social game developer Zynga has revealed that revenue for its first quarter of 2021 surged 83% year-over-year thanks to its focus on mobile games, which accounted for 92% of its total revenue for the quarter. The company pulled in $680.3m in revenue for the quarter, and Zynga’s CEO Frank Gibeau says the company is “incredibly proud” of its performance. Shares in the firm were up more than 6% in after-hours trading on the back of the announcement.
Zynga Reports Record Revenue Growth Thanks to Hit Mobile Games like Words with Friends
Introduction
San Francisco-based social game developer Zynga announced on Wednesday that its quarterly revenue has surged 83% year-over-year, surpassing Wall Street expectations, thanks to popular titles like Words with Friends and FarmVille.
The Numbers
The company, which went public in 2011 and struggled for years, said it generated $680.3 million in revenue for the first quarter of 2021, compared with $369.6 million for the same period last year. Its net income for the quarter was $92.8 million, compared with a net loss of $104.6 million a year earlier.
The Cause
Zynga attributed the growth to its focus on mobile games, which accounted for 92% of its total revenue for the quarter, and the success of games like Words with Friends 2 and Harry Potter: Puzzles & Spells. The company also acquired game developer Peak last year for $1.8 billion, adding to its portfolio of popular puzzle games.
The Future
Zynga CEO Frank Gibeau said in a statement that the company is “incredibly proud” of its performance, but also acknowledged that the pandemic has played a role in boosting demand for mobile games. “We remain focused on building enduring relationships with our players by delivering great content, expanding our franchises, and investing in new growth opportunities,” he said.
The Response
The news sent shares of Zynga up more than 6% in after-hours trading on Wednesday. The company’s stock has already gained more than 70% this year.
The Conclusion
Zynga’s success in the first quarter of 2021 is a promising sign for the company, which has struggled in the past to keep up with the fast-changing gaming industry. Its focus on mobile games, which are increasingly popular with consumers, and its acquisition of a well-known game developer have positioned it for continued growth in the coming years.