Zynga reports $435M US loss
The Associated Press
Posted: Feb 14, 2012 4:52 PM ET
Last Updated: Feb 14, 2012 5:41 PM ET
The corporate logo for Zynga, center, is shown on an electronic billboard at the Nasdaq MarketSite, in New York in December. Zynga Tuesday announced a quarterly loss of $435 million US, or $1.22 per share. (Mark Lennihan/Associated Press)
Online game maker Zynga Inc. reported a net loss in the last three months of 2011, weighed by hefty stock-compensation expenses and other costs in its first quarter as a public company.
Its adjusted earnings and revenue skidded past Wall Street's expectations, but it wasn't enough to lift the stock of the company behind the most popular games played on Facebook.
San Francisco-based Zynga said Tuesday that it lost $435 million US, or $1.22 per share, in the fourth quarter. That's down from earnings of $16.1 million, or five cents per share, a year earlier.
Adjusted earnings were five cents per share, surpassing Wall Street's expectations. This excludes one-time items including $510 million in stock compensation expenses triggered by the IPO.
Revenue rose 59 percent to $311 million as Zynga grew its user base, ad revenue and the money it makes from games such as "CityVille," "FarmVille and "Zynga Poker."
Results beat expectations
Analysts surveyed by FactSet expected Zynga to earn three cents per share on revenue of $302 million.
Zynga said it had 54 million daily active users in the fourth quarter, up 13 per cent from 48 million in the fourth quarter of 2010. The company launched 12 games in 2011.
"Zynga set new records in the year in terms of audience size, revenues and bookings," CEO Mark Pincus said in a statement. "We saw great momentum in mobile and advertising and ended the year with a strong pipeline of new games."
The company expects adjusted earnings of 24 cents to 28 cents in 2012. Analysts are forecasting earnings of 23 cents per share.
Zynga's stock fell 42 cents, or 2.9 per cent, to $13.93 in after-hours trading. The stock had closed up 93 cents, or nearly seven percent, at $14.35.
Share Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Technology & Science News Headlines
- South Africa, Australia to share world's largest telescope
- South Africa and Australia will jointly host the Square Kilometre Array, which promises to be the world's largest telescope, the international consortium in charge of the project said Friday. more »
- Bonavista, N.L., 'coyote' was really wolf, tests confirm
- Wolves have not been seen in Newfoundland since around 1930 and were believed to have been hunted to extinction on the island, but genetic tests have confirmed that an 82-pound animal shot on the Bonavista Peninsula in March was, in fact, a wolf. more »
- Once-rare argus butterfly thriving thanks to climate change
- Global warming is threatening the existence of many species, such as the giant polar bear, but in the case of Britain's brown argus butterfly, it took a species in trouble and made it thrive. more »
- Yahoo scraps digital magazine designed for iPad
- Yahoo has killed Livestand, a tablet magazine, just six months after its debut on the iPad. more »
Bob McDonald's Blog
Government to shut down unique fresh water research area May. 25, 2012 12:31 PM The Experimental Lakes Area research facility in Northern Ontario is being closed down after 44 years of providing invaluable data to scientists in Canada and internationally, a decision that has stunned researchers and environmental groups.
Quirks & Quarks
- May 26: Before the Lights Go Out May. 25, 2012 4:15 PM A new book, "Before the Lights Go Out: Conquering the Energy Crisis Before It Conquers Us", suggests that the unpredictable, unplanned, ad-hoc way our energy use developed in the past will shape our energy future.
Latest Features
- Seniors float above Montreal's Quartier Latin
- Accused in blast that killed Alberta mom handled her funds
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students and province to resume talks
- Lip-dub marriage proposal an internet hit
- Syrian regime denies role in Houla massacre
- B.C. NDP calls for unity in fighting coast guard closure
- Canadian Pacific strikers face back-to-work legislation
