Zynga (ZNGA) claims Apple's App Tracking changes aren't a major threat to its fiscal year

While the Farmville and Words With Friends expects pressure from iOS 14.5's App Tracking Transparency, Zynga execs believe it's not a problematic challenge.

2

Zynga has made a massive name for itself over the years in the form of mobile and social media integrated “hypercasual” games. Farmville alone has been a brand on which the company could reliably count on for years and there are plenty further popular titles in Zynga’s repertoire that expand its popularity and revenue further, but a big part of that last one is in-game ads for its many free games – a matter which might have been threatened by Apple’s new iOS App Tracking Transparency features. However, in its recent earnings conference call, Zynga execs suggested they are not worried about Apple’s changes threatening the company’s 2021 fiscal year.

Zynga executives shared this sentiment in the Q4 2020 Results Conference Call alongside its Fourth Quarter and Full Year 2020 Financial Results on May 5, 2021. Coming off of one the most successful quarter and year revenues the company has experienced yet ($616 million and 51 percent up year-to-year), Zynga established itself well as one of the foremost mobile gaming developers in the world.

Zynga does have a little bit of concern for the pressure Apple's App Tracking Transparency changes puts on its advertisement, but the company also believes it can overcome the challenge.
Zynga does have a little bit of concern for the pressure Apple's App Tracking Transparency changes puts on its advertisement, but the company also believes it can overcome the challenge.

On the flipside, since much of Zynga’s catalogue is free-to-play content which is reliant on in-app advertising, there has been wonder about if the company will experience pressure as a result of Apple’s new iOS 14.5 update, which includes App Tracking Transparency features allowing users to block apps to information collection. During the call, when asked whether or not the company would experience issues as a result of App Tracking Transparency, executives answered that it wasn’t a challenge the company couldn’t overcome.

Chief Financial Officer Gerard Griffin shared that there would be pressure, but not so much that Zynga couldn’t alleviate issues with the various advertising and monetization options at its disposal.

Zynga’s Q4 and FY2020 results also including reveal that it was acquiring Chartboost: a leading mobile programmatic advertising and monetization platform. This acquisition may very well play into its efforts to offset any issues caused by iOS 14.5 and its effects. It's a very different tune from Facebook, which expressed concern at iOS 14.5's effects on its immediate future and has employed in-app messaging in response to App Tracking Transparency rollout. Stay tuned for further financial reporting and Zynga updates as we continue to follow these stories.

News Editor

TJ Denzer is a player with a passion for games that has dominated a lifetime. When he's not handing out beatdowns in the latest fighting games, exploring video game history, or playing through RPGs with his partner, he's searching for new food and drinks in the constant pursuit of good times with good people inside and outside the South Texas area. You can also find him on Twitter @JohnnyChugs.

From The Chatty
Hello, Meet Lola