SAN FRANCISCO--(BUSINESS WIRE)-- Zynga Inc. (NASDAQ: ZNGA) today released financial results for the first quarter ended March 31, 2022.

“We started off 2022 with a strong quarterly performance, achieving our highest ever Q1 advertising revenue and bookings led by our hyper-casual portfolio,” said Frank Gibeau, CEO of Zynga. “Through continued execution across all aspects of our multi-year growth strategy including live services, new game development and investments in our advertising platform, new markets and technologies, we are strengthening our position as a leading mobile-first, free-to-play live services company.”

First Quarter 2022 Financial Summary

• Revenue & Bookings: In Q1, we achieved revenue of $691 million, up 2% year-over-year, and quarterly bookings of $695 million, down 3% year-over-year. Online game or user pay revenue was $538 million, down 3% year-over-year, and user pay bookings were $528 million, down 11% year-over-year. Advertising & other revenue was a Q1 record of $154 million, up 24% year-over-year, and advertising & other bookings reached its highest Q1 performance of $167 million, up 35% year-over-year.
• Audience Metrics: Average mobile daily active users (DAUs) were 40 million, up 3% year-over-year, and average mobile monthly active users (MAUs) were 209 million, up 27% year-over-year. Mobile average bookings per mobile DAU (ABPU) of $0.190 were down 6% year-over-year.
• Costs & Expenses: Cost of revenue was $252 million or 36% of revenue, compared to 38% of revenue in the year-ago quarter. Non-GAAP cost of revenue was $185 million or 27% of bookings, down from 29% of bookings in the year-ago quarter. GAAP operating expenses were $424 million, representing 61% of revenue and an improvement from 62% in the year-ago quarter. Non-GAAP operating expenses of $364 million represented 52% of bookings, versus 49% in the year-ago quarter.
• Profitability & Cash Flow: Net loss was $25 million, compared to a net loss of $23 million in the year-ago quarter, and Adjusted EBITDA was $144 million, up $21 million year-over-year. We had an operating cash outflow of $203 million versus a cash outflow of $164 million in the prior year quarter. In the quarter, we completed the final earn out payments related to the acquisitions of Small Giant Games and Rollic, totaling $265 million.

Due to the pending transaction with Take-Two Interactive Software, Inc. (“Take-Two”) announced on January 10, 2022, Zynga is not hosting a conference call or providing forward guidance in connection with the release of its quarterly results.

Additional information regarding the pending transaction with Take-Two is provided in a registration statement on Form S-4 filed by Take-Two with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the transaction, which includes a joint proxy statement/prospectus of Zynga and Take-Two, and all other relevant documents filed with the SEC. The registration statement was declared effective on April 7, 2022 and the definitive joint proxy statement/prospectus was sent to Zynga and Take-Two stockholders.