Zynga Losses Jump Nearly 400% YoY in Latest Quarter - News

by William D'Angelo , posted on 08 August 2014 / 7,813 Views

Zynga has released its financial report for its second fiscal quarter, which ended June 30, 2014. The company has seen a decline in revenue, as well as a huge increase in losses year-over-year.

For the quarter revenue dropped 34 percent year-over-year to $153.2 million. Losses also grew nearly 400 percent from $15.8 million a year ago to $62.5 million. When you look at non-GAAP, booking dropped seven percent to $175.1 million, while net income dropped from $6.1 million to $2.8 million.

"While our quarterly financial results were in line with our guidance range, we aspire to do better and improve execution across our business," Zynga CEO Don Mattrick said. "Inside Zynga, we recognize that our products have the potential to live for multiple years and with nurturing, refinement and investment, they can grow and scale. We are purposefully competing, and while we would like to be further along, we believe we are making the right decisions to grow our business and unlock long term shareholder value."

With poor sales in the second quarter, Zynga has dropped its forecast for the full fiscal year. The company now projects revenue between $695 million and $725 million, down from $770 million and $810 million.

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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com.

14 Comments

FujiokaMidori (on 08 August 2014)

Let's all punch Mattrick in the face.

HylianSwordsman FujiokaMidori (on 08 August 2014)

I want Zynga to die, but I still want to punch Mattrick in the face. In fact, I think everyone wants to punch Mattrick in the face regardless of their gaming preferences.

SanAndreasX (on 08 August 2014)

Ah, Zynga. The original purveyor of the F2P Kool-Aid that the industry is drinking. Hope the rest of the industry is taking note of this.

Mr_No (on 08 August 2014)

Zynga is no longer relevant in the market. They should dissolve the company before it makes more losses for them.

HylianSwordsman (on 08 August 2014)

400% increase in losses would mean a total of 500% of the previous losses. This is a 300% increase. Sorry, this rubbed the math nerd in me the wrong way.