Zynga posts mixed financial results for 2016
Zynga has said that despite suffering a decline in revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in 2016, it was able to significantly cut losses.
In a financial report for the 12 months to December 31, 2016, Zynga revealed that GAAP revenue amounted to $741.4 million (€696.9 million) in the period, down 3% on the previous year, while adjusted EBITDA fell 40% year-on-year to $48.8 million.
However, GAAP net loss improved by 11% year-on-year to $108.2 million, with the firm also reporting an 8% increase in bookings to $754.5 million.
In addition, Zynga said that operating cash flow amounted to $60 million, which not only represents a jump of $104.5 million on 2015, but also the highest total since 2012.
Zynga was boosted by a relatively positive performance in the fourth quarter, during which GAAP revenue increased 3% year-on-year to $190.5 million.
Deferred revenue in the quarter came in at $11 million, some $6 million above company guidance, with bookings up 11% year-on-year to $201.5 million.
Frank Gibeau, chief executive of Zynga, said: “We had a strong Q4 and made significant progress this year in our turnaround and we’re encouraged by the fundamentals of our business as we head into 2017.
“We’re pleased with the performance of our live services and the quality of our new releases as we improved profitability and continued to sharpen our operating model.”
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