Zynga released its second quarter earnings on Wednesday, July 25, 2012. As it fell short of analyst estimates for revenue and earnings per share, Zynga’s stock has fallen nearly 40% in after-hours trading.
Bohemia, NY (PRWEB) July 27, 2012
On July 27, 2012, online marketing firm, fishbat, Inc., released a statement analyzing the results of social game provider, Zynga’s second quarter earnings that were shared with the public just two days prior on July 25, 2012 and what these results mean for those that work in social media.
Zynga, Inc is a provider of social games, with upwards of 300 million monthly active users playing games such as FarmVille, Mafia Wars, Draw Something and Words With Friends. When the company released its second quarter earnings on Wednesday, it lowered its future outlook to “reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.” Draw Something was expected to be a massive part of Zynga’s strategy moving forward, but the game appears to be losing its user base quicker than expected.
Zynga’s revenue totaled $332 million, an increase of 19% year over year, but it still fell short of analyst expectations. Zynga reported a loss in net income of $22.8 million. In response to the earnings report, Zynga’s stock has fallen nearly 40% in after-hours trading. “Social media stocks have not been performing well this year,” says Justin Maas, social media account director at fishbat, a social media agency. “It is too early to tell how Zynga will be affected in the long run, but their precipitous stock price drop does not bode well. We will have to wait and see what stock performances such as Zynga's mean for the face of social media and those that use it for business.”
fishbat, Inc. is a full service online marketing firm. Through social media management, search engine optimization (SEO), web design, and public relations, fishbat strives as a marketing firm to raise awareness about your brand and strengthen your corporate image.
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This article (Zynga Releases Second Quarter Earnings, Online Marketing Firm, fishbat, Inc., Analyzes the Results) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
