Zynga ZNGA reported a loss of 2 cents per share in first-quarter 2022, in line with the loss per share reported in the year-ago quarter.

Quarterly revenues inched up 1.6 % year over year to $691.2 million, driven by strength in demand for live services.

The Zacks Consensus Estimate for earnings and revenues was pegged at 5 cents per share and $749 million, respectively.

Total bookings came in at $695 million, down 3.5 % year over year. The consensus mark for bookings was pegged at $749 million.

In January, Zynga entered into a definitive agreement with Take-Two Interactive TTWO.

Per the agreement, Take-Two Interactive will acquire all of Zynga’s outstanding shares. The acquisition, as announced, is a cash-and-stock deal, implying an enterprise of $12.7 billion.

Zynga Inc. Price, Consensus and EPS Surprise

Zynga Inc. price-consensus-eps-surprise-chart | Zynga Inc. Quote

Quarter Details

Zynga’s online game or user-pay revenues (77.8% of total revenues) fell 3.5% year over year to $537.7 million.

Advertising and other revenues (22.2% of total revenues) increased 24.5% year over year to $153.5 million. Advertisement bookings (24.1% of total bookings) rose 35.1% year over year to $166.50 million. The upside was driven by robust growth in Zynga’s hyper-casual portfolio.

Mobile revenues (97.3% of total revenues) inched up 1.7% year over year to reach $672.2 million. Mobile bookings declined 3.4% year over year to $676 million. The upside can be attributed to solid demand for its live services.

User Base Details

In the first quarter, user-pay bookings were $528 million, down 11% year over year. The downside was caused by tougher year-over-year comparisons.

Zynga’s average mobile daily active users (DAUs) moved up 5.3% year over year to 40 million. Average mobile monthly active users (MAUs) soared 27.4% year over year to 209 million in the reported quarter.

Average mobile daily bookings per average mobile DAU (ABPU) declined 6% year over year to $0.19.

Operating Details

Non-GAAP operating expenses (52.4% of total bookings) rose 2.9% year over year to $364 million in the reported quarter due to higher investments in the company’s advertising platform, new markets and technologies

Non-GAAP research & development (R&D) and sales & marketing (S&M) expenses shot up 13% and 0.6% year over year to $93.8 million and $246.2 million, respectively. General & administrative (G&A) expenses declined 7% year over year to $24 million.

Adjusted EBITDA came in at $144.4 million compared with the year-ago quarter’s figure of $123.1 million.