Shares of the global leader in interactive entertainment, Zynga Inc. (ZNGA) were trading at $8.23 after hours at the time of this writing, down 15.76%. Thursday’s closing price for ZNGA stock was $9.77, down -1.31 percent. ZNGA stock volume remained at 32.61 million shares, which was higher than the average daily volume of 14.22 million shares during the past 50 days. Despite a promising result and M&A activity, ZNGA stock plunges.
How did ZNGA do during its most recent quarter?
With a mission to connect the world through games, Zynga is a global leader in interactive entertainment. ZNGA, a global gaming company with more than 175 countries and regions under its belt, has more than four billion downloads across its gaming brands on mobile. With headquarters in California and offices throughout North America, Europe and Asia, ZNGA was founded in 2007.
Zynga posted its Q2 2021 Quarterly Earnings Letter to its Investor Relations website yesterday, announcing its financial results for the quarter ended June 30, 2021.
- ZNGA generated revenue of $720 million in the quarter, up from $451.7 million in the year-ago quarter, and bookings reached $711.9 million from $518.1 million.
- A net income of $27.8 million, or 2 cents a share, was posted by ZNGA for the second quarter of 2021 compared to a loss of $150.3 million, or 16 cents a share, a year ago.
ZNGA completed its Chartboost acquisition:
Announcing another acquisition yesterday, ZNGA has completed the acquisition of 100% of Chartboost for an estimated $250 million in cash. ChartBoost is an advertising platform comprised of a Demand Side Platform (DSP) and a Supply Side Platform (SSP) as well as mediation technology through SDK solutions.
With ZNGA and Chartboost, mobile advertising leaders possess all the necessary components for success: high-quality content, direct relationships with players, an enormous reach, and full-stack technology that can be applied to ZNGA’s games and Chartboost ads.
ZNGA is acquiring StarLark:
In another M&A move, ZNGA has entered into a definitive agreement to purchase StarLark from Betta Games for $525 million in cash and stock. StarLark is the developer of Golf Rival, the second-largest mobile golf game in the world.
This acquisition will result in approximately $525 million of ZNGA stock (issued at ZNGA average closing price per share over the thirty-day trading period ended August 02, 2021) being used to acquire the StarLark studio and Golf Rival franchise. Closure of the transaction is expected to take place in the fourth quarter of 2021, including customary closing adjustments.
A looming outlook by ZNGA Stock:
Despite earnings that topped Wall Street estimates, Zynga (ZNGA) shares fell Thursday as it lowered its full-year net bookings from $2.9 billion to $2.8 billion. A decrease in user activity over the summer has led ZNGA to lower its forecast.
