Zynga on Wednesday boosted its annual revenue and predicted its largest orders ever recorded in 2019, as the mobile video publisher saw strong demand for products such as Empires and Puzzles and CSR Racing 2.
The San Francisco-based company boosted its annual guidance to $ 1.2 billion, up 32 percent over the previous year and $ 50 million above its initial target. This leaves the way for its strongest annual revenue since 2012.
Zynga also raised its reserve guidance by $ 100 million to $ 1.45 billion, a 50% increase over 2018, leaving it on track for the highest reserves ever recorded. For the current quarter, the company forecast reserves of $ 360 million, above analysts' expectations of $ 326.6 million, according to Refinitiv.
The optimistic outlook comes as Zynga also has a new gaming channel, including a casino game based on the HBO series. The Game of Thrones alongside others like Fighting Puzzle.
Shares of the company rose 7% in the trading session after the file, to $ 5.90.
Zynga first became famous for his game based on Facebook Farmville but was considered slow to respond to the migration of casual players to mobile devices. Since then, the company has focused on gaming focused on mobile devices and has acquired smaller names as part of its growth strategy.
In the first quarter, revenue jumped 27% over last year to $ 265 million, accounting for the lion's share of the company's revenue at $ 246 million. Meanwhile, orders rose 64 percent from a year earlier to $ 359 million, above analysts' expectations of $ 326.5 million, according to a survey of analysts at Refinitiv.
Its first quarter performance was boosted by its portfolio of live services, including Words with friendsracing game CSR2 and has recently acquired titles such as Empires and Puzzles and Fade Dragons!
However, its growth was at the expense of profits, with the company posting a net loss of $ 128.8 million, or 14 cents a share, compared to a profit of $ 5.6 million, or a penny per share , in the same quarter of last year.
The company also noted that its average number of daily active users reached 22 million, rising sequentially, but down from a year ago, with analysts' forecasts of 26.4 million.
Zynga's shares jumped 40 percent in the year to close on Wednesday, after a nearly 2 percent drop last year.