Zynga (ZNGA) Gross Margin % : 63.51% (As of Mar. 2022)

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What is Zynga Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zynga's Gross Profit for the three months ended in Mar. 2022 was $439 Mil. Zynga's Revenue for the three months ended in Mar. 2022 was $691 Mil. Therefore, Zynga's Gross Margin % for the quarter that ended in Mar. 2022 was 63.51%.

Warning Sign:

Zynga Inc gross margin has been in long-term decline. The average rate of decline per year is -2.6%.

The historical rank and industry rank for Zynga's Gross Margin % or its related term are showing as below:

ZNGA' s Gross Margin % Range Over the Past 10 Years
Min: 58.89 Med: 68.45 Max: 72.51
Current: 64.18

During the past 13 years, the highest Gross Margin % of Zynga was 72.51%. The lowest was 58.89%. And the median was 68.45%.

ZNGA's Gross Margin % is not ranked
in the Interactive Media industry.
Industry Median: 60.98 vs ZNGA: 64.18

Zynga had a gross margin of 63.51% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zynga was -2.60% per year.

Zynga Gross Margin % Historical Data

The historical data trend for Zynga's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zynga Gross Margin % Chart

Zynga Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Gross Margin %

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69.94

66.41

60.35

58.89

63.76

Zynga Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
Gross Margin %	Get a 7-Day Free Trial															61.68	64.82	65.83	62.60	63.51

Competitive Comparison of Zynga's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Zynga's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Zynga's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Zynga's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zynga's Gross Margin % falls into.

Zynga Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zynga's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )	=	Gross Profit (A: Dec. 2021 )	/	Revenue (A: Dec. 2021 )
	=	1785.6	/	2800.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2800.5 - 1014.9)	/	2800.5
	=	63.76 %

Zynga's Gross Margin for the quarter that ended in Mar. 2022 is calculated as

Gross Margin % (Q: Mar. 2022 )	=	Gross Profit (Q: Mar. 2022 )	/	Revenue (Q: Mar. 2022 )
	=	439	/	691.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(691.2 - 252.2)	/	691.2
	=	63.51 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Zynga (NAS:ZNGA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Zynga had a gross margin of 63.51% for the quarter that ended in Mar. 2022 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Zynga Gross Margin % Related Terms

Thank you for viewing the detailed overview of Zynga's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Zynga (ZNGA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Zynga Inc (NAS:ZNGA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

699 Eighth Street, San Francisco, CA, USA, 94103

Website

https://www.zynga.com

Zynga Inc is a company that develops, markets, and operates social games as live services played on mobile platforms, such as iOS and Android, and social networking sites, such as Facebook. Zynga generates revenue through mobile game downloads, in-games sales of virtual goods, and advertising services. Zynga's revenue is divided between Online game and Advertising and other, where Online game accounts for the vast majority of total revenue. The firm's top three games account for the majority of its online game revenue. The company invests in several game categories, such as Social Casino, including Zynga Poker; Casual, including Words With Friends; Action Strategy, including Empires & Allies; and Invest Express, including Farmville.

Executives

Ellen F Siminoff	director	555 ELLIS STREET, MOUNTAIN VIEW CA 94043
Jeffrey Miles Ryan	officer: Chief People Officer	C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
James Gerard Griffin	officer: Chief Financial Officer	C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
Matthew S Bromberg	officer: Chief Operating Officer	C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Amy Marie Rawlings	officer: Chief Accounting Officer	C/O ZYNGA INC., 699 8TH STREET, SAN FRANCISCO CA 94103
Mark J Pincus	director, 10 percent owner, officer: CEO, Chief Product Officer	C/O ZYNGA INC., 699 EIGHTH STREET, SAN FRANCISCO CA 94103
Phuong Y. Phillips	officer: Chief Legal Officer	C/O ZYNGA INC. 699 8TH STREET SAN FRANCISCO CA 94103
Bernard Jin Kim	officer: President of Publishing	C/O MATCH GROUP, INC., 8750 N CENTRAL EXPRESSWAY, SUITE 1400, DALLAS TX 75231
Regina E Dugan	director	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Frank D Gibeau	director	699 8TH STREET, C/O ZYNGA INC., SAN FRANCISCO CA 94103
Jeffrey Buckley	officer: Chief Accounting Officer	C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202
Noel Bertram Watson	director	400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494
William B Gordon	director, 10 percent owner
Devang Shah	officer: General Counsel, Sec. and VP	699 8TH STREET, SAN FRANCISCO CA 94103
Carol Mills Baldwin	director	600 TELEPHONE AVENUE, MS#65, ANCHORAGE AK 99503