Wed, Jul 25, 2012 | 23:59 BST
Zynga Q2 fails to impress, investors dump stock
Zynga’s troubled share market story took yet another tragic turn after the social publisher turned in its second quarter financials today, returning a net loss of $22.8 million.
Zynga had predicated earnings of six cents per share but instead returned losses of three cents per share. The losses represent a significant year-on-year drop on what was a miserable Q2 2011, when the publisher made a profit of just $1.4 million.
Interestingly, Zynga’s revenue was actually up by 19% year on year at $332 million.
CEO Mark Pincus told investors the quarter had allowed Zynga to establish its mobile footprint, which might be considered worth taking a profit hit over, and was quick to describe the poor results as related to “short term challenges”.
Nevertheless, investors freaked out over the missed targets, and Zynga’s stock dropped by $3.03, or 40%, in after hours trading. A few eager opportunists temporarily drove it up again, but it’s not looking good.
Zynga went public in December 2011 for $1 billion, the largest tech IPO since Google’s 2004 debut, but hasn’t been treated kindly since.