Zynga reported revenue and bookings today that beat expectations for its third quarter that ended September 30, as pandemic gaming held up and revenue from acquisitions rolled in.
The San Francisco-based social gaming company reported bookings of $628 million, up 59% from the same quarter a year ago. Revenues (which do not include deferred revenues where users spend the virtual currency they purchase until later) were $503 million, up 46%.
The company grew like other game and media publishers because people are playing more in the pandemic, but Zynga was also able to integrate revenues from its $1.8 billilion acquisition of Turkey’s Peak Games as well as ongoing revenue from its Small Giant Games and Gram Games deals.
In after-hours trading, Zynga’s stock price has fallen 4% to $9.46 a share.
During the quarter, Zynga also completed buying 80% of hypercasual mobile game maker Rollic for $168 million. But Rollic’s results are not yet integrated into the numbers.
Some of the pandemic’s gains dampened during the quarter, but the level of game-playing remains quite above last year’s levels, said CEO Frank Gibeau in an interview with GamesBeat.
“It was a very strong quarter, with our highest-ever quarterly revenue and bookings in our company’s history, really strong operating cash flow, and that has put us in a position where we’re going to be able to raise the full-year 2020 guidance,” said Gibeau. “We had a great result from the live services businesses and with Harry Potter: Puzzles & Spells launching [September 23]. It’s got very strong momentum.”
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is more closely watched as a measure of the company’s profitability. Adjusted EBITDA was $38 million, better than guidance thanks to lower-than-expected changes in deferred revenue and stronger overall performance and offset by bonus