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Net bookings rose 6% to $668 million in the third quarter, beating analysts’ average estimate of $666 million, according to IBES data from Refinitiv.
Zynga, which said “FarmVille 3” is off to a great start since its launch last week, however, forecast current-quarter net bookings of $715 million, compared with estimates of $715.4 million.
The company is also taking a “little bit more of a conservative stance on how the advertising business is going to perform in the fourth quarter,” Chief Executive Officer Frank Gibeau told Reuters.
Apple Inc (NASDAQ:AAPL)’s recent privacy changes to its operating system that make it hard for third-play apps to track iPhone users without their consent have prompted warnings from several social media firms, including Facebook (NASDAQ:FB) parent Meta Platforms Inc and Snap Inc (NYSE:SNAP).
Zynga has been a prolific acquirer. It bought mobile game ad network Chartboost to bring advertising in-house, while bolstering its mobile game portfolio by snapping up Peak, Rollic and Echtra Games.
A pandemic winner, the company is also contending with more gamers stepping outside following COVID-19 vaccinations and the easing of restrictions.
“We have seen a drop in DAUs (Daily Active Users) because people have kind of gone from being sheltered at home and moved back to jobs, school and wherever else. So, we have seen a drop in demand for games versus the peak COVID quarters,” Gibeau said.
Total revenue rose 40% to $704.7 million.
Zynga’s quarterly net loss narrowed to $41.7 million, or 4 cents per share, from $122.2 million, or 11 cents per share, a year earlier.
