Zynga ZNGA is set to report fourth-quarter 2021 results on Feb 9.

The company expects fourth-quarter revenues to be $675 million. The Zacks Consensus Estimate for revenues is pegged at $720.4 million, indicating an increase of 3.02% from the year-ago quarter’s reported figure.

The consensus mark for earnings has remained unchanged at 8 cents per share in the past 30 days, suggesting year-over-year growth of 100%.

The company has a trailing four-quarter negative earnings surprise of 23.61%, on average.

Let’s see how things have shaped up for the upcoming announcement.

Zynga Inc. Price and EPS Surprise

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

Factors Likely to Influence Q4 Results

Zynga is expected to have benefited from strength in mobile live services fueled by the strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!

Contributions from Rollic’s hyper-casual games portfolio are likely to have expanded the company’s robust gaming portfolio and strengthened its international audience base.

In November, Zynga announced the launch of a new competitive feature, Leagues: World Champions, in its free-to-play mobile poker game Zynga Poker. Moreover, November release Farmville 3 is expected to have driven user growth.

For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 36.86 million and 176 million, respectively.

Zynga expects net bookings to be $715 million for fourth-quarter 2021. The Zacks Consensus Estimate for bookings is currently pegged at $720 million, indicating growth of 3% year over year.

The company’s revenues are expected to benefit from live services. Growth in advertising, particularly from Rollic’s hyper-casual portfolio, and contributions from Chartboost as well as FarmVille 3 and Golf Rival are expected to have driven the top line.

Moreover, intense competition in the video game space from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard is likely to have hurt fourth-quarter revenues.

Key Developments in Q4

On Dec 21, Zynga announced a strategic partnership with Forte, a leading developer of blockchain solutions for game publishers. The alliance will enable Zynga to use its brand, community and intellectual property to develop more fun and enduring blockchain games.

On Oct 7, Zynga announced that it had closed the acquisition of StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for a total purchase price of over $525 million in cash and stock.