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GAMING NEWS

Zynga's Net Profits and Monthly Active Users Drop

Posted on Monday, November 7 @ 08:15:11 Eastern by Nicholas Tan

Though Zynga almost doubled their revenue in this third quarter (ending September 30th) compared to the same quarter last year, the company's overall profits have had to eat their tremendous investments.

Net income fell 54% to $12.5 million in the third quarter, following already drop of 90% in the second quarter. Daily active users fell about five million, whereas monthly active users fell one million.

To counter hesitations by Wall Street investors interested in the company's recent IPO intensions, Zynga has showcased more than ten social and mobile game projects, especially CastleVillle which will launch in several weeks. This is also in an effort to validate its increased costs and the $114.8 million expenditure in the third quarter, including its tremendous payroll supporting a workforce of 1,500 employees.

Will Zynga recuperate or are its Facebook days numbered?

[Source]

Tags: Zynga