Feeds

Zynga shares wobble as biz bleeds $85.4m in Q1

Farmville HQ reports net loss despite revenue hike

High performance access to file storage

Freshly public online gaming outfit Zynga reported a first quarter net loss of $85.4m to Wall Street yesterday.

The company, which has catapulted its sales off the back of Facebook, where it derives around 93 per cent of its revenue from the social network, had earnings of $17m in the same period a year earlier.

Revenue rocketed 32 per cent year-on-year to $321m – a figure that outshone analyst expectations. Sales were relatively flat compared with Zynga's fourth quarter, however.

The firm's recent purchase of OMGPOP – the startup behind gaming titles such as Draw Something – helped it beat Wall Street forecasts.

Shares in the company, which debuted on Nasdaq in March this year, have fallen nearly 40 per cent with analysts questioning the company's ability to bring in tons of cash in the long term.

Facebook, which is expected to IPO in the next few months, retains a fee of up to 30 per cent of the face value of user purchases in Zynga's games on its network. That deal is in place between the two outfits until May 2015.

Shares in Zynga dropped 8 cents to $9.34 in after-hours trading on Nasdaq. The stock had a price tag of $10 when the company floated in March this year. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.