Create an account


Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
News - Zynga reports $104M loss for Q1 despite record-setting revenues

#1
Zynga reports $104M loss for Q1 despite record-setting revenues

Zynga today published its Q1 earnings results, reporting both record-setting revenues and a larger-than-predicted loss for the first three months of 2020.

The two are actually intertwined, as Zynga says it ended up taking a $104 million loss (GAAP) for the quarter despite bringing in $404 million in revenues and $425 million in bookings because it had to compensate some 2018 acquisitions for ongoing outstanding performance.

“Our acquisitions of Small Giant Games and Gram Games continue to perform ahead of our expectations, resulting in a $120 million contingent consideration expense versus our guidance of $25 million,” reads an excerpt of today’s earnings report. ” This was the primary driver of the difference in our net loss of $104 million versus our guidance of a net loss of $26 million.”

Zynga acquired Small Giant Games (Empires & Puzzles) and Gram Games (Merge Dragons!) in 2018 for roughly $560 million and $250 million, respectively, and each deal included stipulations for Zynga to pay out more money over three years based on undisclosed performance metrics.

Looking ahead, Zynga predicts a loss for the current quarter, forecasting a $60 million loss on the $400 million in revenues it expects to earn.

The company has also revised its expectations for the full year in light of its big loss this quarter, noting that it now expects to lose $245 million on $1.6 billion in revenues during 2020; Zynga chalks up $200 million of that predicted $245 million loss to “contingent consideration expense” for acquisitions that are continuing to perform well, noting that ” should our recent acquisitions continue to perform ahead of expectations, we may see a further increase in the cumulative contingent consideration expense.”

The company also confirmed that all Zynga employees are now working from home in the face of the ongoing coronavirus pandemic, and that business will continue to be conducted remotely for the foreseeable future.



https://www.sickgaming.net/blog/2020/05/...-revenues/
Reply



Possibly Related Threads…
Thread Author Replies Views Last Post
  News - Netflix Streaming Record Broken By The Queen's Gambit xSicKxBot 0 6 11-23-2020, 11:44 PM
Last Post: xSicKxBot
  News - Zynga is shutting down FarmVille after over a decade xSicKxBot 0 36 09-29-2020, 03:28 PM
Last Post: xSicKxBot
  News - The Batman Hasn't Resumed Production, Despite Reports To the Contrary xSicKxBot 0 57 09-06-2020, 03:01 PM
Last Post: xSicKxBot
  News - Xbox closes Q4 with gains in hardware revenue, record engagement xSicKxBot 0 122 07-24-2020, 09:46 AM
Last Post: xSicKxBot
  News - Embracer Group sees record shift toward digital due to COVID-19 xSicKxBot 0 118 05-23-2020, 10:15 PM
Last Post: xSicKxBot
  News - Twitch Has Record-Setting Quarter Amid Coronavirus Lockdown xSicKxBot 0 196 04-04-2020, 04:21 AM
Last Post: xSicKxBot
  News - Zynga faces class action lawsuit over 2019 data breach xSicKxBot 0 202 03-05-2020, 07:50 PM
Last Post: xSicKxBot
  News - Andy Samberg's New Movie Broke A Sundance Record By 69 Cents xSicKxBot 0 268 01-29-2020, 06:37 AM
Last Post: xSicKxBot
  News - Pokemon Sword And Shield Had A Record-Breaking Opening Weekend xSicKxBot 0 261 11-21-2019, 07:40 PM
Last Post: xSicKxBot
  News - Overwatch Setting Up 'Sigma' In Another Hero 31 Teaser xSicKxBot 0 367 07-23-2019, 02:08 PM
Last Post: xSicKxBot

Forum Jump:

Become a Patron!
[-]
Upcoming Events

[-]
Latest Threads
ISO: Staff Members for Website, Discord,...
Last Post: tracieuw18
Today 11:19 AM
» Replies: 3
» Views: 348
Official Sick Gaming Social Links: Twitt...
Last Post: Richarddat
Today 10:17 AM
» Replies: 1
» Views: 1685
Online Coursework Proofreading Service
Last Post: Berenice5
Today 10:09 AM
» Replies: 0
» Views: 3
Microsoft - Making credit flow again in ...
Last Post: xSicKxBot
Today 08:43 AM
» Replies: 0
» Views: 2
News - Gal*Gun Returns Scores February 2...
Last Post: xSicKxBot
Today 08:42 AM
» Replies: 0
» Views: 2
Nike Flyknit Racer Pistachio
Last Post: xm56h2wh
Today 06:21 AM
» Replies: 0
» Views: 5
Adidas NMD CS2 PK Pearl Grey
Last Post: xm56h2wh
Today 06:19 AM
» Replies: 0
» Views: 4
Adidas NMD CS2 Core Black/Red Solid
Last Post: xm56h2wh
Today 06:18 AM
» Replies: 0
» Views: 4
Unigine 2.13 Released
Last Post: xSicKxBot
Today 02:25 AM
» Replies: 0
» Views: 3
News - Defentron Brings ’80s-Style 3D To...
Last Post: xSicKxBot
Today 02:24 AM
» Replies: 0
» Views: 2

[-]
Twitter

[-]
Sponsored
Get the Deal of the Week at RefurBees.com

Copyright © SickGaming.net 2012-2020