Zynga Inc. Shares initially jumped 10% in Wednesday trading after Wednesday’s earnings, proving that once again, homegrown Americans are struggling with digital games.
The mobile-gaming company reported a $ 150 million, or 16 cents per share loss in the second quarter, with a loss of $ 55.8 million, or 6 cents per share, in the year-ago quarter.
Revenue increased 47% to $ 452 million from $ 306.5 million a year earlier. Sales included record online game revenue of $ 388 million, 61% year-over-year. For its strong prospects, the company increased its full-year revenue guidance from $ 110 million to $ 1.8 billion.
Analysts polled by FactSet had expected to accommodate a loss of 13 cents on sales of $ 505 million.
With no foresight to look at shelter-in-place programs, Americans are increasingly turning to gaming as a new form of social media – one in which they chat together to solve a puzzle or adventure game and Can work Zynga officials say that is translating into record levels of engagement, retention and monetization.
“If you asked me on New Year’s Eve ”I didn’t think that would happen,” Zynga CEO Frank Gibue told Marketwatch in a phone interview on Wednesday. “But the epidemic changed that. Gaming is very flexible during economic difficulties. This is a great way to connect. ”
According to Zynga the popular titles “Empire Puzzles,” “Merge Dragons,” “Merge Magic” and “Game of Thrones Slot Casino” were the biggest drivers of growth. The San Francisco-based company also said that it is buying developer Rolick on July 1 and has ceased its acquisition of Peak, a mobile puzzle game maker.
Zynga’s strong quarter featured rival Activision Blizzard Inc. ATVI.
And traditional gaming company Take-Two Interactive Software Inc. TTWO,
earlier this week. Activision reported second-quarter net income of $ 580 million, or 75 cents a share, compared with $ 328 million, or 43 cents a share, in the year-ago period, while Take-Two said revenue grew 54%. The record rose to $ 8.33 million.
See also: Activision Blizzard Results, Outlook Top Wall Street Projections
Zynga’s shares are up 62% this year. Comprehensive S&P 500 Index SPX,
There is a 3% improvement in 2020.