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CEO of social gaming company Zynga: The Company has completed its turnaround
According to Zynga CEO, the company's turnaround has now been completed. “We are ready for significant growth in 2019 and beyond. 2019 looks good and business is growing strongly.”
Tencent Technology News According to foreign media reports, as of the fourth quarter of December 31 last year, social gaming company Zynga's revenue was 249 million US dollars, and the profit was 559,000 US dollars, exceeding its goal.
Zynga CEO Frank Gibeau said that the company's full-year performance in 2018 indicates that the company's long "turnaround process has now been completed."
Zynga's earnings report showed that in the fourth quarter of last year, its earnings per share was 249 million US dollars, an increase of 7%; bookings of 267 million US dollars, an increase of 19%.
For the first quarter of this year, the financial situation is more complicated. Zynga has set a target of $325 million, while analysts expect it to be $325 million. But this figure includes about $85 million in deferred revenue, and players may prepay virtual currency but not use it for a few months. In this case, Zynga can only confirm the monthly income, but not all purchases at the same time.
Zynga's first quarter earnings before income tax, depreciation and amortization (EBITDA) will be a loss of $59 million due to deferred revenue.
Zynga said revenue in the first quarter will reach $240 million, compared with analysts expecting $265 million. Wall Street expects overall revenue to remain flat in the first quarter, which means Zynga's forecast may be disappointing.
But we should also see that Frank Gibeau expects a 30% increase in bookings for 2019.
It is not clear whether investors are happy or scared about this report. In after-hours trading, Zynga's share price rose 4% to $4.70 per share.
Frank Gibeau said in an interview: "Zynga's turnaround has now been completed, and we are ready for significant growth in 2019 and beyond. 2019 looks good and business is growing strongly."