Zynga Inc (NASDAQ:ZNGA) has issued its third quarter 2017 financial report. Frank Gibeau, the CEO, expressed that they recorded a strong third quarter, recording their best bookings performance and revenue in next four years. Revenue came at $224.6 million compared to projection of $14.6 million. Bookings came at $213.5 million, up 9% from the same period, a year ago.
The details
Mobile user-pay came at an all-time high for both bookings and revenue, up 20% and 44% year-over-year, respectively. It now exhibits 87% of the company’s total bookings and revenue. Gibeau expressed that they delivered notable growth in profitability in the quarter hitting net income of $18.1 million. This marks the first time since the company went public that Zynga has posted two successive quarters of net income. Cash flow from operations so far in this year has over doubled to $68.2 million from $32.3 million, a year earlier. Gibeau added that they are on track to deliver their improved margin objectives by the close of 2018 and, for the long-term, they are focused on recording margins in-line with their peers.
Net income came at $18.1 million, a jump pf $59.8 million YOY and better than company’s guidance by $11.1 million. Zynga teams recorded bookings of $213.5 million, up 95 YoY and beating projection by $8.5 million. This represents company’s best bookings performance and revenue in last four years. The stronger than projected performance in the third quarter was led by live services portfolio, especially forever franchises including CSR2, Zynga Poker and Words with Friends.
Zynga recorded $11.1 million in net release of deferred revenue versus guidance of $5 million. Adjusted EBITDA came at $44.6 million, a jump of $41 million YoY and above projection by $14.6 million. It posted operating cash flow of $35.1 million, an increase of $14.1 million YoY.
