New games lead Zynga’s revenue to increase; more titles coming in Q2

By Mike Thompson Comment

Today’s first quarter earnings report from Zynga revealed record-breaking revenue and bookings, largely as the result of new games the company launched since January.

As we predicted, Zynga is eschewing a repeat of 2011’s release schedule, which saw user numbers sag because the company launched a majority of new games in the latter half of the year. Zynga released two new web titles and four mobile games this quarter. Schappert revealed a second arcade game is coming next quarter, as are an unspecified number of new mobile titles. Zynga Bingo is also going to receive a marketing push.

“As we get better at driving our related cross-promotion on mobile, we should see better efficiencies on customer acquisition on the web as well,” Zynga CEO Mark Pincus said on today’s earnings call.

Pincus and COO John Schappert were vague on specifics but they did reveal that part of the increase in bookings was due to CastleVille, which showed comparable bookings to those of CityVille from Q1 2011. Zynga games more than a year old remained fairly strong with bookings around 80 percent of what they were in 2011.

Another major factor behind Zynga’s revenue boost was the international market. International revenue was up by 50 percent year over year and 8 percent quarter over quarter. This was credited to improved international payment mechanics and improved localization. Zynga’s titles are now available in over 28 countries and in 18 different languages. The company says that its games will receive more region-specific content in the future.

Advertising and partner revenue was up 3 percent quarter over quarter. Schappert revealed that Zynga has formed new advertising partnerships with companies like Kia Motors, and Miracle-Gro. Zynga is also going to expand reward advertising — which allows players to receive virtual goods by watching video ads — from CityVille to other games.