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Zynga reported a $22.8 mllion net loss for the second fiscal quarter of 2012, missing Wall Street targets and sending its stock price tumbling with a 35 percent drop in after-hours trading on the NASDAQ index.
Zynga reported a $22.8 mllion net loss for the second fiscal quarter of 2012, missing Wall Street targets and sending its stock price tumbling with a 35 percent drop in after-hours trading on the NASDAQ index.
The social-gaming company adjusted its 2012 earnings outlook accordingly, lowering its expectations to reflect "delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something." Zynga bought Draw Something developer OMGPOP for $180 million earlier this year, but the game has seen significant drops in its active user base.
For the second quarter, which ended on June 30th, Zynga reported a loss of 3 cents per share on revenue of $332.5 million, whereas Wall Street expected to see earnings of 5 cents a share on $344 million in revenue. At the time of writing, Zynga's stock is down 35 percent to $3.30 per share. The news also dropped Facebook's stock 7 percent after hours.
