American video game publishing company, Zynga, got investors excited after revealing strong 2020 numbers and an exciting acquisition plan for the future. According to data presented by SafeBet, Zynga’s quarterly net revenue increased by 68.5% YoY, reaching $680M in Q1 2021.
Zynga Posted YoY Revenue Growth of Close to 70%; CAGR at almost 10% from 2018-2021
Like many in the video game industry, Zynga saw engagement spike in 2020 as lockdowns forced people to shelter indoors in many parts of the world. As a result, Zynga posted strong numbers in many metrics in 2020, a trend that has continued on to 2021. In Q1 2021, Zynga posted a record quarterly revenue of $680.3M – a 68.5% YoY increase from the $403.8M revenue earned in Q1 2020.
Q1 2021’s revenue is also a 10% QoQ increase from Q4 2020’s $616M revenue. In the period from Q1 2018 – Q1 2021, Zynga’s quarterly revenue grew at an impressive Compound Annual Growth Rate (CAGR) of 9.53%. 97% of Zynga’s total revenue is generated from their mobile games which amounted to $660.7M in Q1 2021.
Zynga’s User Base Grew Significantly Since Q1 2020
Zynga’s user base also rose sharply within the same reporting period. In q1 2021, Zynga’s mobile games had 38M average daily active users (DAU) This figure is a sharp YoY increase of almost 81% from Q1 2020’s 21M average DAU. Zynga’s average monthly active users (MAU) grew even more in the same reporting period.
In Q1 2020, Zynga registered 164M MAU compared to just 68M in Q1 2020 – a staggering 141% YoY increase.
Zynga Has 8th Largest Market Share; Announces Plans to Make $250M Acquisition
As of Q1 2021, Zynga had the 8th largest market share among mobile gaming publishers in the US with a 2.09% share. The company also recently announced plans to purchase the ad-technology company Chartboost clearly signalling Zynga’s intention to enter the mobile advertising industry.
Rex Pascual, esports editor at Safe Betting commented;
“Zynga’s continued strong performance in Q1 2021, combined with publicised plans to purchase Chartboost has got investors very excited about what’s to come for Zynga. The company is well-positioned to sustain its impressive growth after not only adding an entirely new revenue stream but a very lucrative one at that.”
