Zynga Inc. is a US based social game developing company focusing primarily on mobile and social networking platforms. It competes with Electronic Arts Inc., Gameloft Se and Dena Co. Ltd. The company generates revenue primarily from the sale of in-game virtual items (online games) and advertising services with the objective to become the worldwide leader in play by connecting the world through games. As of Q2 2019, the revenues from these business segments came in at. And let’s look into Zynga Revenue by Business Segment data here.
Revenue (in thousands USD)
|Advertising and other||65792||21.47%|
Revenue growth depends on the company’s ability to attract and retain gamers and effectively monetize the customer base through the sale of online games and advertising. The company achieves this through the launch of new games, advancement of existing games and expansion into new markets and distribution platforms.
In this segment, the company plays around the sentiments of players and their gaming passion. They believe that players choose to pay for virtual items to enjoy the additional playing time or added convenience and the option to personalize their own games.
In 2019, revenue was boosted mainly by booking through mobile platforms than through the Facebook platform. This segment, contributing over 75 per cent of the revenue, reported a 46 per cent increase compared to the same period in 2018. This increase in primarily attributable to increase in revenue from Merge Dragons! and Empires and Puzzles supplemented by an increase in revenue from Words with Friends.
This primarily includes revenue from engagement ads and offers, display ads and branded virtual items and sponsorships. It also consists of royalties received from the licensing of the company’s brands. This is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item or over the term of the advertising arrangement.
This segment, with a 21 per cent revenue contribution, reported a 26 per cent growth as compared to the same period in 2018. This increase is attributable to increase in mobile in-game offers, engagement ads and mobile in-game display ads
Zynga Inc., publicly traded on NASDAQ as ZNGA, is a leading provider of social game services with approximately 70 million average mobile monthly active users. These social games developed, marketed and operated by the company are generally available as live services played on platforms like iOS, Android and are free to play.
Headquartered in San Francisco, California, the company is operating in an industry facing several risks such as stiff competition, volatile and difficult operations, lower switching costs to name a few. The company intends to maintain its consistency through retention of the customer (player) base and continued enhancement of the current games.
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