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Zynga Projects 2019 Revenue To Rise 27% - Quick Facts

Zynga Inc. (ZNGA) announced, for the full year of 2019, the company expects to deliver $1.15 billion in revenue, up 27% year-over-year, with bookings of $1.35 billion, up 39% year-over-year, offset by a net increase in deferred revenue of $200 million, up 221% year-over-year.

In first-quarter, Zynga expects $240 million in revenue, up 15% year-over-year, with bookings of $325 million, up 48% year-over-year, offset by a net increase in deferred revenue of $85 million, up 656% year-over-year. The company projects a net loss of $59 million or an adjusted EBITDA loss of $29 million, for the first quarter.

For the fourth-quarter, revenue was $249 million, up 7% year-over-year. Bookings were $267 million, up 19% year-over-year. The company recorded mobile online game - or mobile user pay - revenue of $158 million, up 8% year-over-year and mobile user pay bookings of $179 million, up 28% year-over-year. Zynga reported break-even per share for the quarter compared to $0.01, prior year.

"We finished 2018 strong, delivering fourth-quarter results ahead of our raised guidance and surpassing our near-term margin goal for the second consecutive quarter. Our better than expected results were driven by record mobile revenue and bookings from Words With Friends, Merge Dragons! and CSR2 as well as effective cost management. We also delivered our highest quarterly operating cash flow since fourth quarter 2011. Zynga's turnaround is now complete and we are well positioned for significant growth in 2019 and beyond," the company stated.

As of December 31, 2018, the company held $581 million of cash, cash equivalents and short-term investments and had $100 million of debt outstanding on its $200 million revolving credit facility. Zynga stated that it is currently assessing a number of actions to increase cash reserves to further fund growth through acquisitions. These actions include a potential sale-leaseback of San Francisco building as well as additional debt financing alternatives.

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