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Zynga ends 2012 with a $209 million loss, but beats expectations
Zynga ends 2012 with a $209 million loss, but beats expectations
February 5, 2013 | By Frank Cifaldi

February 5, 2013 | By Frank Cifaldi
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    10 comments
More: Social/Online, Business/Marketing



Zynga has officially closed the books on its first year as a publicly traded company, and there's both good news and bad news for the struggling social and mobile game giant.

The bad news: the company lost $209 million dollars during the year, and lost 6 of its 60 million daily active users between the third and fourth quarters of 2012.

The good news, though, is that it did better than Wall Street analysts were expecting: the company generated $311 million in revenues during the quarter, versus a $212 million analyst consensus.

Investors seem happy: share prices are up around 6 percent in after hours trading.

CEO Mark Pincus attributed the revenues to the healthy performance of FarmVille 2.

Zynga's had a rough time lately, having recently shut down 11 games after major layoffs, continuing to be drained of its executive and creative staff, and recently losing its spot at the top of the Facebook game charts.

The company says it will continue shuttering games that aren't performing to is expectations: CityVille 2, The Friend Game and Party Place are next.

In 2013, Zynga will attempt to grow its mobile presence, and will take its first steps toward real money gambling.


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Comments


TC Weidner
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only on wall street would you find investors "happy" that you are losing money, customers, and employees by the truckload.

Rob Graeber
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Better than losing money, customers, and employees by the boatload.

Bob Johnson
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Depends on the size of the boat and truck.

Rachel Presser
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Are we talking speedboat that fits in the back of a pick-up truck...or an 18-wheeler on a freighter ship?

Carlo Delallana
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Real Money Gambling. I still don't know what the long-term effect this trend will have on games.

Doug Poston
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@Jay: Zynga isn't a traditional gambling company yet.

Personally I'm really interested in seeing if they can make the transition.

E McNeill
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The Friend Game is dying? :(

I mean, I barely ever played it, so I guess I can't complain, but it seemed interesting at least.

Paulo Ferreira
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How a company that makes Facebook games spend $520 million in one year?

Rachel Presser
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Paying people takes money. And a lot of it!

But I imagine it's also pretty expensive to keep training new hires and upping the price on new managers to entice them in when 98% of the workforce leaves. It's not inconceivable to think most of that $520 million has gone to severance packages and promises in shareholder agreements rather than switching costs.

Cody Scott
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didnt we all say that this was going to happen when they went public?


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