How Does Zynga’s Revenue And Other Key Metrics Compare With That of Electronic Arts?

January 2nd, 2020 by Trefis Team
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Zynga (NASDAQ:ZNGA) is engaged primarily in developing social games, that use a variety of social platforms to enable gaming interaction, and features the ability to have multiple players engaged at any point in time if needed. It primarily creates games for the mobile platform. Electronic Arts (NASDAQ:EA) is engaged primarily in developing and distributing games for video game consoles, personal computers, mobile phones, and the Internet. It focuses more on e-sports, such as FIFA and NFL, which are its top selling games. While Zynga focuses on social games for the mobile platform, Electronic Arts’ games are diversified between console, PC, and mobile. In this note we compare both the companies’ revenues and other key metrics. You can look at our interactive dashboard analysis ~ Zynga vs. Electronic Arts: How Have Revenues & Other Key Metrics Changed Over Recent Years? ~ for more details. Note that Electronic Arts’ fiscal year ends in March, while Zynga follows the calendar year reporting.

Electronic Arts’ Revenue of $5 Billion Is Much Higher Than <$1 Billion For Zynga

  • Zynga and Electronic Arts are both engaged primarily in the gaming business.
  • Zynga’s revenues have grown from $690 million in 2014 to $907 million in 2018, led by its popular franchises, including CSR and Zynga Poker. Look at our interactive dashboard analysis for more details on Zynga’s revenues.
  • Electronic Arts revenues grew from $4.5 billion in fiscal 2015 to $5.0 billion in fiscal 2019. Look at our analysis on Electronic Arts’ revenues for more details.

Zynga’s Revenues Grew At A Higher Pace On Average When Compared To Electronic Arts

  • Zynga’s revenue growth over the last 5 years was higher than that of Electronic Arts.
  • Zynga’s revenue grew at a CAGR of 7.5% between 2014 and 2018, while the figure was 2.5% for Electronic Arts between fiscal 2015 and fiscal 2019. The jump in Electronic Arts revenue in fiscal 2017 can be attributed to higher sales of some its games, including Star Wars, and FIFA, while the jump in Zynga’s sales in 2017 can be attributed to the new game launches in 2016, and the full year impact from the new titles seen in 2017.
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America Region Accounts For A Significant Portion of Revenues For Both The Companies

  • The U.S. accounted for 66% of total sales for Zynga in 2018.
  • For Electronic Arts, the figure stood at 39% in fiscal 2019.

Electronic Arts Is More Dependent On Console Platform For Its Revenue, While Zynga Operates Primarily In Mobile Gaming

  • Mobile platform games accounted for 90% of total sales for Zynga in 2018.
  • For Electronic Arts, the figure stood at 17% in fiscal 2019, while its highest sales came from console platform (67%).

Gross Profit Margin For Electronic Arts Is Slightly Better Than That For Zynga

  • Gross Profit Margin for Zynga declined from 69% in 2014 to 66% in 2018.
  • Electronic Arts Gross Profit Margin grew from 68% in fiscal 2015 to 73% in fiscal 2019.

Electronic Arts’ Adjusted Net Income Margin Has Also Been Better Than Zynga’s

  • Zynga’s adjusted net income margin grew from -2% in 2014 to 23% in 2018.
  • Electronic Arts’ adjusted net income margin grew from 18% in fiscal 2015 to 27% in fiscal 2019.
  • The dip in margins in fiscal 2017 can be attributed to income tax expense of $243 million, as compared to income tax benefit of $279 million in the prior fiscal.

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