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The above graph represents the Zynga sales and marketing expenses by quarter, starting from fiscal Q1 2010 to the recently completed quarter. The company spent $123.17 million in sales and marketing during the first quarter of 2020, representing a 20.7% YoY growth. However, it was nearly 3.56% decline from Q4 2019 when Zynga quarterly sales and marketing expenses reached an all-time high of $127.72 million.
Sales and marketing expenses accounted for 24.86% of the total operating expenses in Q1 2020.
Zynga Quarterly Sales and Marketing Expenses: History
|Source||Zynga Quarterly Reports, SEC Filings|
|Note||Zynga fiscal year starts from January 1st|
As the graph shows, the quarterly sales and marketing spending of Zynga increased a massive 130.8% YoY, from just $17.40 million in Q1 2010 to $40.16 million in Q1 2011.
In Q4 2011, the company’s sales and marketing expenses increased a record 193.2% YoY, to $112.23 million. The surge in expenses was primarily due to the YoY increase in stock-based compensation, player acquisition costs, headcount-related expenses and consulting costs. However, the company declined its sales and marketing expenses to just $56.84 million in the following quarter itself.
After Q4 2011, the fiscal Q1 2019 was the first time when the gaming company spent over $100 million in sales and marketing activities across the world. Zynga sales and marketing spending in Q1 2019 amounted to $102.01 million. The strong 100.6% YoY increase was primarily attributable to increases in player acquisition costs related to the games acquired from Small Giant and Gram Games, respectively.
In Q4 2019, Zynga quarterly spending in marketing and sales hit a record-high of $127.72 million, with an impressive 90.1% YoY growth.
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