Solid 1Q17 results
On May 4, 2017, Zynga (ZNGA) announced its 1Q17 results and reported revenues of $194.3 million, a rise of 4% YoY (year-over-year). The company’s GAAP[1. generally accepted accounting principles] operating expenses fell 12% YoY to $138.5 million. Its net loss was $9.5 million in 1Q17, compared to a net loss of $17.1 million in 1Q16.
Revenues from Zynga’s (ZNGA) Mobile segment accounted for 83% of the company’s total revenues and rose 19% YoY to $161.6 million. Its mobile bookings comprised 85% of its total bookings and rose 27% YoY to $176 million in 1Q17.
Advertising revenues fell in 1Q17
Zynga’s (ZNGA) advertising and other revenues accounted for 21% of the company’s total revenues and fell 18% YoY to $41 million in 1Q17. Zynga’s 1Q17 earnings letter noted, “As we look across 2017, we expect advertising to grow marginally as we progress through the year.”
Zynga stock rose over 12% on May 4, 2017, after the company announced its 1Q17 results. In May, the stock’s price rose almost 22%. In comparison, gaming giants Activision (ATVI), Electronic Arts (EA), and Take-Two Interactive (TTWO) rose 12%, 20%, and 22%, respectively, in May 2017.