Zynga's latest financial report has investors jumping ship in a hurry.
The company's share price declined 40 per cent today after its Q2 report revealed that although there was growth in both users and year-on-year bookings, the numbers fell short of estimates, resulting in a net loss of $22.8m according to the report.
"Our games reached record audiences, achieving over 300 million monthly active users,” stated CEO Mark Pincus. We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network.”
Despite those positives, earnings of $332.5m couldn't live up to the previously forecasted $344.12m.
That figure along with launch delays, a ‘more challenging environment' on Facebook, and reduced expectations for Draw Something, have brought about a lowered outlook for Zynga in 2012; and investors aren't having any of it.
"The results are a disaster," Sterne Agee & Leach analyst Arvind Bhatia told The Wall Street Journal. "It's looking more and more like this might have been a fad."