Social gaming operator Zynga turned a profit in 2017, the first time it has accomplished that feat since 2010.
Late last week, Zynga reported revenue of $233.3m in the three months ending December 31, 2017, a 22% year-on-year improvement and a new quarterly record. Zynga also posted a $12.9m profit versus a $35.4m loss in Q4 2016, extending its profit streak to three consecutive quarters.
For the year as a whole, revenue was up 16% to $861.4m, while net income came in at $26.6m, a year-on-year improvement of nearly $135m. It’s the first time since Zynga went public in 2010 that the company has ended a year in the black.
The gains are due to a combination of factors, including the company’s successful transition to a mobile-first company, an area that was once the company’s Achilles heel. Mobile revenue was up 29% in 2017, with mobile’s share of overall revenue rising nine points to 86%. Cost controls also played a role, as Zynga managed to cut operating expenses from 83% of revenue in 2016 to just 67% last year.