Zynga fails to meet analyst estimates for Q2, sees $332 million in revenue, lowered outlook

Zynga is a state of decline, fails to meet analysts' estimates for Q2.

@anthony256
Published Wed, Jul 25 2012 7:46 PM CDT   |   Updated Tue, Nov 3 2020 12:27 PM CST

Zynga didn't have high estimates from analysts, but the company didn't even meet those. The company releases their Q2 earnings report, which showed revenue of $332 million, and lost $22.8 million, or 3 cents per share. Analysts predicted Zynga would pull in 5 cents per share on revenue of $344 million.

Zynga fails to meet analyst estimates for Q2, sees $332 million in revenue, lowered outlook | TweakTown.com

Zynga have said they have 72 million daily active users, up from 59 million in the previous quarter, and 306 million monthly active users, up from 228 million. Bookings on the other hand, were $302 million, up 12-percent from the same time last year, but a sequential decline of around 9-percent from the previous quarter.

The company has now lowered its outlook going into the rest of 2012 based on 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 are projecting $1.15 billion to $1.225 billion in bookings for the remainder of 2012.

In the earnings press release, Zynga CEO Mark Pincus says:

The company achieved some significant milestones in the quarter including the launch of Bubble Safari, which is now the number one arcade game on Facebook, and the launch of The Ville, now the number two game behind Zynga Poker. Our advertising business continued to show strong growth with revenue up 170% year-over-year. Our games reached record audiences, achieving over 300 million monthly active users. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network. We also faced new short-term challenges which led to a sequential decline in bookings. Despite this, we're 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.

Something to also remember is that this is only Zynga's third earnings report as a public company. Last quarter they beat expectations, with a revenue of $321 million and a loss of 12 cents per share.

NEWS SOURCE:techcrunch.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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