Feeds

Zynga shares wobble as biz bleeds $85.4m in Q1

Farmville HQ reports net loss despite revenue hike

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.