Zynga Posts Highest Mobile Revenue in Company's History
The social gaming publisher hit a new high for its mobile division, $287 million, besting last quarter's $265 million, which was also a record.
Zynga, the game developer most widely-known for franchises such as Farmville and Words With Friends, reported a massive year-over-year increase in revenue — $306 million, a 43 percent bump — for its second quarter of 2019. Revenue from Zynga's mobile sector was also the highest in the company's history at $287 million.
The growth was driven by strong performances from the titles Empires & Puzzles (originally released in 2017) and Merge Dragons (also launched in 2017), which together accounted for $70 million in deferred revenue. Meanwhile, Words With Friends (launched in 2009) delivered the franchise's highest Q2 revenue total ever.
"We had a really strong performance across the company," Zynga COO Matt Bromberg tells The Hollywood Reporter. "We think about our business in three main categories: doing a great job driving forever franchises, building great new games and new markets and platforms. We had strength across all those categories, but certainly the growth was driven by the performance of our games teams.”
Last quarter, Zynga reported the previous highest mobile revenue in its history with $265 million for the period.
Looking ahead, Zynga is anticipating an even higher mark for revenue next quarter, projecting a total of $325 million for the period, buoyed by the continued performances of Empires & Puzzles and Merge Dragons, as well as the new Game of Thrones Slots Casino title, which launched in May. The company also raised its guidance for the full year to $1.2 billion.
In June, Zynga launched Tiny Royale on the newly formed Snap Games platform. "We’re interested in seeing new areas of innovation and distribution," says Bromberg. "The Snap platform is a really dynamic platform that reaches a demographic that’s really attractive to us. It was really important for us to be one of the first folks there and learn and innovate and grow with them."
Zynga, founded in 2007 and headquartered in San Francisco, currently employs 1,862 workers globally across offices in the U.S., Canada, the U.K., Ireland, India, Turkey and Finland. The company has plans to release new licensed games based on popular franchises such as Harry Potter and Star Wars in the near future.
This year, Zynga acquired the mobile game studios Small Giant Games and Gram Games. In December 2017, the company acquired the mobile card game studio Peak Games for $100 million. Zynga has recently raised $1.4 billion in cash to further its growth.
"It’s in our strategy to continue to look for great games teams globally who we think can fit into our portfolio," says Bromberg.