Zynga Pushes Into NFT Gaming, Announces Record Q3 Revenue: What Investors Should Know
A mobile game studio announced a key hire that could push the company into the world of non-fungible tokens. The hire came on top of record third quarter revenue and bookings.
Here’s what investors should know Tuesday about Zynga Inc (NASDAQ: ZNGA).
Zynga’s NFT Games Push: Zynga announced that it appointed Matt Wolf as the company’s vice president of blockchain gaming.
“Wolf will focus on the opportunity to integrate non-fungible tokens and blockchain technology into Zynga’s existing portfolio and owned IP, as well as to develop games from inception that are built with NFTs as part of the core gameplay loop,” the company said.
Wolf is the founder and previous CEO of D20, an emerging media agency focused on gaming, esports, blockchain and NFTs. Wolf also worked for Coca-Cola Inc (NYSE: KO) where he oversaw marketing strategy for gaming, music, film, fashion and social media platforms.
Zynga has launched games with many emerging technologies and platforms and highlights that this hire and launch is a key part of the company’s growth strategy.
“We are excited about the benefits that NFTs and blockchain technology can bring to our existing titles, new game pipeline and the future of gaming,” Zynga Chief Product Officer Scott Koenigsberg said.
Zynga’s Q3 Earnings: Zynga reported third-quarter revenue of $705 million, beating company guidance of $665 million. The company reported bookings of $668 million, beating company guidance of $660 million.
Revenue was up 40% year-over-year and bookings were up 6% year-over-year for the third quarter. Both figures were third-quarter company records.
Forever franchises made up 64% of the company’s third-quarter revenue. The company saw revenue in the U.S. of $425 million, up 36% year-over-year, and international revenue of $280 million, up 46% year-over-year.
Zynga ended the third quarter with 38 million daily active users and 183 million monthly active users, representing year-over-year growth of 21% and 120%. respectively.
Related Link: 3 Upcoming Catalysts That Could Lift Zynga’s Stock
What’s Next For Zynga: The company highlighted its “Golf Rival” game, which it acquired as another fast-growing franchise. “Farmville 3” was launched by the company last week and is off to a great start, according to Zynga.
Zynga has a Star Wars game coming in soft launch next week, which could help boost the company’s gaming franchises.
“Farmville 3” was the No. 1 and No. 2 top free downloaded game in the U.S. for the iPad and iPhone app stores last week, Zynga said.
Zynga also announced a new exclusive game for TikTok. “Disco Loco 3D” is a single player music and dance and challenge game. Players can collect their own dance moves and challenge friends and followers.
Players have to avoid obstacles while playing the game and can swipe away objects approaching them.
“We see a tremendous opportunity to reach new audiences across the globe through TikTok’s massive and unparalleled user base,” Zynga President of Publishing Bernard Kim said.
“Disco Loco 3D” will be the first HTML5 game created for TikTok’s gaming platform by a gaming studio.
“Execution of our multi-year growth strategy has us on track to deliver Zynga’s best-ever annual topline performance and the largest mobile audience in the company’s history,” according to Zynga.
Zynga sees fourth quarter revenue of $675 million and bookings of $715 million.
ZNGA Price Action: ZNGA shares were up 8.94% at $7.62 late in Tuesday’s session.
Disclosure: Author is long ZNGA shares.
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