Zynga announce loss of nearly $23 million
Zynga said on Wednesday night that it lost $22.8m, or three cents per share, in the April to June quarter. That’s down from earnings of $1.4m a year ago when it was still privately held. Its per-share results last year were at breakeven.
Adjusted earnings in the latest quarter were a penny per share, below expectations of five cents per share.
Zynga’s revenue grew 19% to $332m, the company had a lot riding on this quarter. Investors had been punishing its stock because of worries about declining user numbers.
But the results provided no relief. Zynga’s stock sank $2.09, or 41%, to $2.99 in after-hours trading after the results came out.
Facebook’s stock also declined after Zynga’s announcement. The bad news from Zynga could hurt Facebook, which reports its earnings on Thursday. Most of Zynga’s games are played on Facebook’s website.
