Zynga (ZNGA) stock rose about 5% in the extended-hours after reporting Q4 earnings results. The company reported earnings of $0.00 per share on revenue of $249 million and the results were ahead of the company’s raised guidance across key financial measures. Mobile revenue grew 12% year-over-year to $228 million and mobile bookings grew 26% to $248 million.
Zynga had guided revenue to be $243 million and diluted (loss) income per share to be $(0.00) for the fourth quarter. Bookings on a non-GAAP basis were pegged to be $260 million. For the full year of 2019, Zynga expects to deliver $1.15 billion in revenue, up $243 million or 27% year-over-year, with bookings of $1.35 billion, up $380 million or 39% year-over-year.
For Q1 2019, Zynga expects $240 million in revenue, up $32 million or 15% year-over-year, with bookings of $325 million, up $106 million or 48% year-over-year and net loss is touted to be $59 million.
The San Francisco-based 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.
For 2019, the company cautioned that it anticipates pressure in margins due to a higher mix of user pay versus advertising, as well as an increase in royalties on licensed IP.
Zynga expects 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.
Zynga acquired 80% of Finland-based mobile gaming company Small Giant Games in December 2018. Effective as of January 1, 2019, the company closed the acquisition of Small Giant Games for $364 million in cash and $231 million of equity. Zynga will purchase the remaining 20% of Small Giant over the next three years at valuations based on specified profitability goals.
On Monday, another mobile gaming company Glu Mobile (GLUU) reported weaker-than-expected quarterly results and the stock dropped more than 10%.
Zynga stock has been trading between $3.20 and $4.60 in the 52-week period and had given a positive return of 16% in the three months period and 15% in this year so far.
Micron Technology Inc. (NASDAQ: MU) Thursday said its fourth-quarter profit declined from last year, hurt by a sharp fall in revenues. Earnings, however, beat the market’s projection. On an adjusted
Shares of Philip Morris International Inc. (NYSE: PM) were down 1% on Thursday. The stock has dropped over 9% year-to-date. Although the tobacco industry has felt the pinch of inflation,
CarMax, Inc. (NYSE:KMX) reported second quarter 2023 earnings results today. Net revenues rose 2% year-over-year to $8.1 billion. Net earnings were $125.9 million, or $0.79 per share, compared to $285.2 million,