In Q1, gaming company Zynga Inc (NASDAQ: ZNGA) reported 27% growth in revenues to $265 million, benefiting from the strength of its live mobile services as well as a 64% jump in bookings. However, the top line missed the projection set by analysts, which was pegged at $327.07 million.
While mobile revenue grew 35% year-over-year to $246 million, mobile bookings grew 77% to $341 million.
The Farmville-maker swung to a loss 14 cents per share during the quarter from earnings of 1 cent per share last year as royalty hikes and marketing expenses offset the benefits from higher revenues coming down the line. Analysts had projected earnings of 5 cents per share.
Though the top and bottom line missed street estimates, ZNGA shares jumped 8%, riding on the guidance hike announced by the company.
Outlook
Zynga raised its full-year 2019 guidance to $1.2 billion in revenue, up 32% year-over-year. This represents an increase of $50 million versus our prior guidance. The company also raised its bookings guidance to $1.45 billion, up 50% year-over-year, suggesting a $100 million increase from the previous outlook.
For the second quarter, the company expects a 29% growth in revenue to $280 million. Bookings are seen increasing 54% to $360 million during this period.
The company expects its topline performance to be similar in Q1 and Q2, driven primarily by live services. In the second half of the year, the company expects to layer in additional growth from the new game launches as well as a seasonal lift in advertising.
Zynga anticipates low double-digit revenue and bookings growth in 2020, with greater operating leverage as live services growth in 2020 will be further enhanced by a full year contribution from 2019 new game launches.
The stock has gained 38% since the beginning of this year in a consistent rally.