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ZYNGA INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2022 10-Q, filed May 9, 2022. Its latest SEC filing is a SC 13G/A from Feb 10, 2023.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Develops, markets and operates free-to-play social games for players on mobile devices, social networks, computers and consoles, and provides advertising services to marketers.

How Did They Make Money?

Players pay when they buy virtual currency or virtual goods in Zynga’s games; those purchases support game access over the player’s time in the game. Advertisers and advertising partners pay for ads delivered in games, with payment generally due 30 to 60 days after month-end.

FY2021 revenue

Who Were Their Customers?

Players buy virtual currency and virtual goods in Zynga’s games. Marketers and advertisers reach players through ads in games, and Zynga also works with advertising networks, agencies and brokers.

Did Revenues Turn Into Profits?

Not on paper. It lost $104.2M in FY2021, but brought in more cash than it spent: $241.3M of free cash flow.

Operating income, FY2021
2% of revenue
▲ Now profitable vs FY2020 (−$370.2M, −19%)
Net income, FY2021
−4% of revenue
▼ −76% (Loss) vs FY2020 (−$429.4M, −22%)
Free cash flow, FY2021
9% of revenue
▼ −41% vs FY2020 ($410.4M, 21%)

How Were They Changing?

Since the FY2021 annual report
Latest quarter: Q1 FY2022, the three months to Mar 31, 2022
Revenue
▲ +2%
vs $680.3M in Q1 FY2021
Net income
▲ +7% (Loss)
vs −$23M in Q1 FY2021
  • May 26, 2022 Zynga’s CFO and other officers resigned after the combination The CFO, Chief Legal Officer, Chief Accounting Officer and Chief People Officer tendered resignations in connection with the combination.
  • May 23, 2022 Take-Two completed its acquisition of Zynga Zynga stockholders received $3.50 in cash and 0.0406 shares of Take-Two common stock for each share of Zynga common stock.

Grew. Revenue grew 3.3x in 4 years, from $861.4M in FY2017 to $2.8B in FY2021, about 34% a year.

More platforms The latest business description includes games on PCs, consoles and other platforms, in addition to mobile and social networking platforms; the older description names mobile platforms and social networking sites.

Advertising platform The latest report adds operation of a mobile programmatic advertising and monetization platform, alongside game advertising services; the older report describes advertising services but not that platform.

Who Did They Compete With?

Competes with Activision Blizzard, AppLovin, Aristocrat, DoubleU, Electronic Arts, Epic Games, ironSource, Moon Active, NetEase, Netmarble, Niantic, Nintendo, Playrix, Playtika, SciPlay, Scopely, Take-Two Interactive Software, Tencent, Ubisoft, and Voodoo SAS

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