Despite experiencing stronger revenues in Q2 2012 than in Q2 2011, Zynga reported a $22.8 million net loss for the quarter and lowered its outlook for the rest of the year to adjust for "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.
The social megalith reported revenue income of $332.4 million for the period, up 16 percent over the same period last year, which sounds good until you get to the company's net loss of $22.8 million -- compare that with the $1.3 million in profit reported in Q2 2011.
Addressing investors, Zynga CEO and founder Mark Pincus lauded his company's successful launch of Bubble Safari
, as well as The Ville
's increasing popularity. "We also faced new short-term challenges which led to a sequential decline in bookings," Pincus said. "Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web."
Zynga's stock fell during trading as a result of its lowered outlook for the rest of 2012, hitting a low of $4.88 per share before closing the day up at $5.08 a share.