(This version of the August 1st story corrects to show that Zynga acquired a unit of Peak Games and not the entire company in paragraph 3)

FILE PHOTO: A bird flies above the corporate headquarters of Zynga Inc, the social network game development company, in San Francisco, California April 26, 2012. REUTERS/Robert Galbraith/File Photo

(Reuters) – Game developer Zynga Inc on Wednesday forecast third-quarter bookings ahead of Wall Street estimates, driven by revenue from “Merge Dragons” and other newly acquired smartphone games.

Zynga, once best known for “Farmville,” has been beefing up its slate of smartphone games ever since users ditched Facebook-based desktop games around 2012 and began turning increasingly to mobile devices.

Under Frank Gibeau, who became CEO in 2016, San Francisco-based Zynga has tried to revamp itself as a mobile-focused games maker, and has snapped up several smaller game studios including Gram Games and the card and board games studio of Peak Games.

Newer games such as Gram’s “Merge Dragons” – an easy-to-play and addictive title Zynga acquired in May – boosted the company’s bookings forecast. The company expects current-quarter bookings of $248 million, above financial analysts’ average estimate of $245.4 million, according to Thomson Reuters I/B/E/S.

Bookings are an important measure of future revenue for companies like Zynga which sell virtual goods such as currency and lives inside smartphone gaming apps.

Legacy Zynga games such as “Words with Friends 2” and “CSR Racing 2” helped the company report second-quarter bookings of $233.9 million, above…