Shares of Zynga (ZNGA) rose on Thursday after the game company reported fourth-quarter results that beat analyst expectations. Revenue and bookings soared, and the company expects solid double-digit growth in 2020. Zynga stock was up about 12% at 11:30 a.m. EST today.
Fourth-quarter revenue was $404 million, up 63% year over year. Bookings came in at $433 million, up 62% and roughly $63 million higher than the average analyst estimate. Online game revenue was up 84% to $325 million, while advertising revenue rose 11% to $80 million.
Games that performed well during the quarter included Words With Friends, Empires & Puzzles, and the recently launched Merge Magic!
Zynga reported a small net loss of $3.5 million, compared with a small net profit of $600,000 in the prior-year period. On a per-share basis, earnings rounded to $0.00, beating analyst expectations by $0.03. While revenue soared during the quarter, overall costs soared as well.
Zynga expects to deliver revenue of $385 million in the first quarter, along with bookings of $400 million and a net loss of $26 million. For the full year, the company expects revenue of $1.6 billion, bookings of $1.75 billion, and a net loss of $130 million. In 2019, Zynga reported revenue of $1.32 billion and a net profit of $42 million.
The market cheered Zynga's solid results and revenue guidance. The outlook calling for a substantial net loss this year wasn't enough to derail the stock.