Zynga posts $22.8 million loss in Q2 2012 report

Jul 25, 2012
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Zynga's report for its second quarter has landed, and some things about it aren't looking too hot. The social games giant reported a loss of $22.8 million for the quarter, which is down from the $1.4 million the company made during the same quarter last year. Revenue, on the other hand, was up for the quarter, rising 19% year-over-year to $332 million, so the news isn't all that bad.

Some more good news for Zynga: the company reported that daily active user numbers have climbed to 72 million, up from 59 million in Q2 of 2011. Monthly active user numbers also got a boost in Q2 2012, with Zynga claiming 306 million MAUs, up 34% from Q2 2011's 228 million. In keeping with the company's trend for the quarter, monthly unique users also experienced growth, getting up to 192 million as compared to the 151 million it was able to boast at the same time last year. The company's adjusted earnings-per-share came in at just a penny, which failed to meet expectations of $0.05 per share.

So, it's a bit of both good and bad for Zynga. Having to post a loss is never good, but at least Zynga managed to get its active user numbers up during the quarter, which is one of the big things investors were worried about. However, user numbers don't mean everything for Zynga, as most of its users don't pay anything to play its games. Zynga makes most of its money from a small subset of its larger user base, so the best user numbers in the world don't mean anything if none of them are paying.

Are Zynga's fans leaving the company behind as they begin to graduate from Facebook social games to mobile games? That remains to be entirely seen, but Zynga is definitely one to watch as we head into quarters 3 and 4 of 2012.


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