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Zynga Q2 revenue up 59% to $720 million

Net income equalled to $28 million
Zynga Q2 revenue up 59% to $720 million

Zynga has revealed that its revenue has grown by 59 per cent to a record $720 million. 

The figures were made public through the company’s financial results for the quarter ended on June 30th, 2021, with 18 per cent of its revenue being generated by advertising and 82 per cent by in-app purchases.

Zynga's US revenue during the period rose 58 per cent to $436 million, while international sales rose 62 per cent to $284 million.

Games such as Toon Blast, Toy Blast and Harry Potter: Puzzles & Spells were highlighted as performing particularly well. Zynga Poker also generated its best second-quarter sales in nine years, while Words With Friends delivered its best for the same period.

Net income came in at $28 million, which compared to company guidance of a $30 million loss. Zynga also generated $161 million in terms of operating cash flow. It ended the quarter with $1.2 billion of cash and short term investments.

Zynga's games attracted 41 million daily active users and 205 million monthly active users during the quarter.

Looking forward

In his letter to shareholders, Zynga CEO Frank Gibeau said he was excited about future growth but also pointed to issues surrounding "the adoption of Apple's privacy changes" that have increased UA costs. He also commented that some players are now less engaged compared to earlier in 2021 due to COVID-19 restrictions being relaxed during the summer.

Gibeau further commented in a statement: "We completed a strong first half of 2021, delivering Q2 results ahead of our guidance, including our best-ever Q2 revenue, bookings and operating cash flow. Our multi-year strategy of growing our live services, launching new games and investing in global expansion continues to position Zynga for growth." 

Looking ahead, Zynga has pushed back the global launch of FarmVille 3 from Q3 to Q4, but cross-platform title Star Wars: Hunters is expected to enter soft launch testing in Q4.

Alongside the financials, Zynga also announced it had acquired StarLark and its sports title Golf Rival for $525 million.