Social gaming monolith Zynga has revealed its second quarter financial figures, reporting a $22.8 million net loss for the period and a lowering of their outlook for the rest of the year.
The folks behind such games as Farmville and Draw Something reported revenue income of $332.4 million for Q2 2012, which is up 16% from last year at this time. However, the $22.8 million net loss is a significant step down from last year’s $1.3 million made in profit during this quarter, which was a meager sum to begin with.
As a result, Zynga lowered its 2012 earnings outlook from its previously projected 23 to 29 cents a share, now all the way down to 4 to 9 cents a share. Throughout all of this, the company’s stock had plummeted by roughly 40% on Nasdaq, before closing at $5.08 a share.
CEO Mark Pincus acknowledged his company’s troubled times, but says that despite what he terms as “new short-term challenges which led to a sequential decline in bookings,” he and the rest of Zynga remain “optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web.”
By Jeff Dunn