Feeds

Zynga shares wobble as biz bleeds $85.4m in Q1

Farmville HQ reports net loss despite revenue hike

Build a business case: developing custom apps

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. ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?