Zynga Inc. (NASDAQ:ZNGA) reported a strong Q3 2020 ahead of its guidance on all critical financial measures, including record quarterly revenue of $503 million. The solid performance was due to an increase in number to Zynga’s gaming experience for entertainment.
Zynga posted record revenue in Q3
The company’s CEO Frank Gibeau discussed Zynga’s Q3 earnings and growth with CNBC’s “Squawk Alley” stating the company is well-positioned for more growth in the gaming sector. Frank said that the company posted record revenue in the quarter, which is the highest in the company’s history. The company posted exceptional results in the quarter in terms of profitability, margin expansion, bookings, and operating cash flow. Frank added that the execution of the company’s multi-year growth strategy was the reason behind the exceptional results, and it generated positive momentum across the company’s overall business and live services.
The CEO indicated that Zynga recently launched a new game Harry Potter: Puzzles & Spells which has been received well with positive player reviews. At the beginning of October, the company closed the acquisition of Rollic marking its entry into the high-growth, hyper-casual games segment.
Zynga positioned for more growth
Going into Q4, the company has raised its guidance to revenue of $570 million and bookings of $670 million, which is a 55% YoY. The company expects contributions from the recently launched Harry Potter: Puzzles & Spells which the company plans to scale going into Christmas and 2021. Frank said that the company reaffirmed its 2021 guidance and expects the company to grow double digits which positions the company well in the high growth mobile gaming industry.
Frank confirmed that the company is growing well in the current conditions despite pressures on companies such as Google and Apple on their app ecosystem. He added that going forward in terms of anything that might change that will act as tailwinds for Zynga. The current market conditions are serving the company well, and the proliferation of smart devices and launch of 5G Network will drive even more multi-year growth for content producers such as Zynga.