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ZYNGA ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS

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ZYNGA ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS

 

Zynga Inc. released financial results for the fourth quarter and full year ended December 31, 2021.

“Our strong Q4 results capped off our record 2021 performance where we delivered our highest annual revenue and bookings ever, while reaching the largest mobile audience in Zynga history,” said Frank Gibeau, CEO of Zynga. “I am proud of our team’s execution across all aspects of our growth strategy including live services, new game development and investments in our advertising platform, new markets and technologies to solidify Zynga as a leading mobile-first, free-to-play live services company.”

Fourth Quarter 2021 Financial Summary

• Revenue & Bookings: We achieved record Q4 revenue of $695 million, an increase of 13% year-over-year, and our best-ever quarterly bookings of $727 million, up 4% year-over-year. Online game or user pay revenue was $534 million, up 7% year-over-year, and user pay bookings were $555 million, down 5% year-over-year. Advertising & other revenue was a quarterly record of $161 million, up 37% year-over-year, and advertising & other bookings were an all-time best of $171 million, up 46% year-over-year.

• Audience Metrics: Average mobile daily active users (DAUs) were 37 million, up 3% year-over-year, and average mobile monthly active users (MAUs) were 184 million, up 38% year-over-year. Mobile average bookings per mobile DAU (ABPU) of $0.204 decreased by 1% year-over-year.

• Costs & Expenses: Cost of revenue was $260 million or 37% of revenue, compared to 41% of revenue in the year-ago quarter. Non-GAAP cost of revenue was $194 million or 27% of bookings, down from 28% of bookings in the year-ago quarter. GAAP operating expenses were $437 million, representing 63% of revenue and an improvement from 64% in the year-ago quarter. Non-GAAP operating expenses of $357 million represented 49% of bookings, versus 47% in the year-ago quarter.

• Profitability & Cash Flow: Net loss was $67 million, compared to $53 million in the year-ago quarter, and adjusted EBITDA was $147 million, up $57 million year-over-year. We generated operating cash flow of $158 million, down $48 million year-over-year.

2021 Annual Financial Summary

• Revenue & Bookings: We achieved our highest-ever annual revenue of $2,801 million, an increase of 42% year-over-year, and our best-ever annual bookings of $2,826 million, up 24% year-over-year. Online game revenue was a record $2,249 million, up 35% year-over-year, and user pay bookings were a record $2,265 million, up 15% year-over-year. Advertising & other revenue was a record $551 million, up 79% year-over-year, and advertising & other bookings were a record $561 million, up 83% year-over-year.

• Audience Metrics: Record annual average mobile DAUs were 39 million, up 41% year-over-year, and all-time best annual average mobile MAUs were 184 million, up 107% year-over-year. Annual mobile ABPU of $0.194 decreased by 12% year-over-year.

• Costs & Expenses: Cost of revenue was $1,015 million or 36% of revenue, compared to 41% of revenue in the prior year. Non-GAAP cost of revenue was $787 million or 28% of bookings, down from 30% of bookings in the prior year. GAAP operating expenses were $1,730 million, representing 62% of revenue and a significant improvement from 78% in the prior year. Non-GAAP operating expenses of $1,386 million represented 49% of bookings versus 46% in the prior year.

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• Profitability & Cash Flow: Net loss was $104 million, an improvement of $325 million year-over-year, and adjusted EBITDA was $641 million, up $374 million year-over-year. We generated operating cash flow of $254 million, down $176 million year-over-year, and ended the year with approximately $1.2 billion in cash and investments.

Due to the pending transaction with Take-Two Interactive Software announced on January 10, 2022, Zynga is not hosting a conference call or providing forward guidance in connection with the release of its quarterly results.

Please refer to the original press release announcing the pending transaction with Take-Two Interactive Software here: https://investor.zynga.com/news-releases/news-release-details/take-two-and-zynga-combine-bringing-together-best-class.

 

Gaming

10-15% Of Gamers In Florida Show Signs Of Gaming Addiction: Here Are 10 Signs Your Kid Is Suffering From It (And How You Can Help)

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Recent studies indicate that 10-15% of young gamers in Florida exhibit signs of gaming addiction. These findings underscore the need for early identification of symptoms to prevent negative impacts on children’s mental and physical health. Gaming addiction, if not dealt with, can lead to poor academic performance, social withdrawal, and even health problems.

Marin Cristian-Ovidiu, CEO of FreezeNova, discusses key indicators of gaming addiction and offers practical advice for parents.

Recognizing Early Signs

“Early recognition of gaming addiction is crucial in preventing long-term negative outcomes,” Marin explains. The following signs can help parents identify if their child might be developing an addiction:

Exhaustion and Irritability

Constant tiredness and grumpiness during the day could indicate late-night gaming sessions interfering with sleep.

Gaming Obsession 

If gaming dominates your child’s thoughts and conversations, and they plan their day around it while neglecting other responsibilities, it could be a sign of addiction.

Decline in Academic Performance and Lost Interests

A noticeable decline in academic performance or loss of interest in previously enjoyed activities may suggest your child is prioritizing gaming over more important tasks.

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Emotional Volatility

Extreme emotional reactions to in-game outcomes, such as uncontrolled anger, known as ‘Gamer Rage’, or intense celebrations, could indicate an unhealthy attachment to gaming.

Physical Strain

Signs of repetitive strain injuries like ‘Gamer’s Thumb’ or ‘Nintendo Neck’ from prolonged screen time are warning signals.

Neglecting Basic Needs 

If your child is neglecting basic needs like eating, sleeping, or hygiene to keep playing, gaming has likely taken an unhealthy control over their life.

Creating a Supportive Environment

While video games can be a great source of entertainment and connection, around 70% of people with signs of gaming addiction also experience social disorders. Marin recommends a few tips for building a supportive and open environment for your child.

Teamwork and Setting Boundaries

“Parents and children should work together to create a healthy gaming environment. Gaming addiction requires a holistic approach,” Marin advises. Start by setting clear boundaries on gaming time to ensure there’s room for schoolwork, chores, and quality family time.

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Revisit activities your child once loved, like football practice or exploring new hobbies together. It’s vital for your child to take breaks from screens, so create a balanced daily routine that includes homework, chores, exercise and just some gaming time. This allows your child to enjoy their games without neglecting other aspects of their life.

Open Communication

Maintain open communication. Discuss the games your child enjoys and any concerns you might have. By understanding their world, you can work together to find solutions.

Remember, you’re not alone. If you feel overwhelmed, seek professional help from specialists in gaming addiction. Marin concludes, “By working as a team, setting clear boundaries, and fostering open communication, we can help your child develop a healthy relationship with gaming and thrive in all areas of life.”

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Gaming

SPGA Announces Social Sweeps Game Sector Video Briefing

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The Social and Promotional Gaming Association (SPGA) has released a video briefing designed to provide insight and information on the social sweeps gaming model. This briefing is designed to address the growing attention and interest in how the social casino with sweepstakes prizing functions and why millions of players across America enjoy this safe and legal form of entertainment.
This inaugural SPGA briefing features insights from Matt Kaufman, Managing Director, Digital & Interactive Gaming at Eilers & Krejcik Gaming, and Jon Kaplowitz, CEO and Co-Founder of Clubs Poker. The discussion is moderated by prominent sports betting industry founder and investor Chris Grove.
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eSports

CS2 Intel Extreme Masters Rio 2024 SuperComputer: NaVi to bounce back after Blast Fall Final loss

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Final: Natus Vincere (36.5%) to beat Team Vitality (28.1%)

Semifinal 1: Natus Vincere (52.6%) to beat MOUZ (16.3%)

Semifinal 2: Team Vitality (47.7%) to beat G2 Esports (18.7%)

Quarterfinal 1: G2 Esports (39.8%) to beat FaZe Clan (32.8%)

Quarterfinal 2: MOUZ (35.9%) to beat Eternal Fire (24.7%)

Group stage

  1. Natus Vincere – 48.7% to finish 1st; 17.0% to finish 2nd; 84.1% to make playoffs

  2. Team Vitality – 40.8% to finish 1st; 17.4% to finish 2nd; 77.7% to make playoffs

  3. G2 Esports – 19.3% to finish 1st; 20.4% to finish 2nd; 56.7% to make playoffs

  4. MOUZ – 14.5% to finish 1st; 21.8% to finish 2nd; 53.0% to make playoffs

  5. FaZe Clan – 13.9% to finish 1st; 21.0% to finish 2nd; 50.2% to make playoffs

  6. Eternal Flame – 40.7% to finish 1st; 16.2% to finish 2nd; 40.7% to make playoffs

  7. Liquid – 16.3% to finish 7-8th; 35.7% to make playoffs

  8. Virtus.pro – 15.4% to finish 7-8th; 29.9% to make playoffs

  9. Astralis – 28.9% to finish 9-12th; 31.5% to make playoffs

  10. The MongolZ – 32.7% to finish 9-12th; 25.4% to make playoffs

  11. Complexity – 34.3% to finish 9-12th; 21.2% to make playoffs

  12. Heroic – 26.8% to finish 9-12th; 23.5% to make playoffs

  13. paiN – 36.5% to finish 13-16th; 21.0% to make playoffs

  14. FURIA – 36.4% to finish 13-16th; 20.9% to make playoffs

  15. 9z – 44.7% to finish 13-16th; 14.6% to make playoffs

  16. Imperial – 49.1% to finish 13-16th; 13.9% to make playoffs

It has been quite the run for NaVi despite their loss with back to back grand finals in recent weeks but CSDB.gg’s predictive model suggests there will be no let up for the Ukrainian esports organisation.

G2 will also be looking to build more momentum in preparation for Majors season with NiKo on a quest to finally get over the line this year to win his first major title. Hopefully Rio won’t have to see a repeat of his reaction in the semifinals at BLAST Premier Fall Final 2024 where he punched a hole in a table after losing out to Team Vitality in a key moment.

However, the hosts of Intel Extreme Masters Rio 2024 may want to lockdown any nearby furniture and reinforce their desks if G2 are set for disappointment at the semifinals stage as predicted by the CSDB.gg SuperComputer.

A victory in Rio could be even more consequential for how the end of the year shapes up for the leading teams on the circuit. The Valve Global rankings have both teams close at the very top (NaVi at 1988 and G2 at 1953) meaning a win for either team could hand them a key advantage when it comes to who enters the Majors as top seed. 

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Back-to-back wins in T1 events for G2, should they prosper in Rio, would set the Berlin-based team on an incredible trajectory going into the winter months.

Meanwhile, Brazilian hopes for glory look slight according to the CSDB.gg SuperComputer with FURIA, the team co-owned by Neymar, having only been given a 20.9% chance of even making the playoffs. 

They are the leading contenders to make an impact for the home crowd but there are other teams flying the flag for Brazil with paiN and Imperial also set to give it their best to give local fans something to cheer on.

In terms of forecasted matchups of note, G2 and FaZe Clan could offer up a fascinating encounter in the quarterfinals should both teams qualify, with each organisation rated as having a strong chance of making the semis with little to separate them should they meet.

How was the CSDB.gg CS2 Tournament SuperComputer created?

The CSDB.gg CS2 Tournament SuperComputer is a predictive model created using world ranking points, team quality ratings and performance trends. An element of randomness is also included in the model to avoid the best teams and players always winning, to reflect the fact that upsets can happen.

Every tournament is simulated 1,000 times with the results aggregated into a percentage rating of the chances teams or players have to achieve the predicted result.

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