NBC
Social gaming company Zynga.
By msnbc.com news services
Updated at?4:58 p.m. ET:
Shares of Zynga tumbled 18 percent Wednesday after the?online gaming company reported that user growth slowed in the final three months of 2011, raising fears about how it will generate revenue growth in the future.
In its first-ever earnings report as a public company, the maker of the popular Farmville and Cityville games said Tuesday it had 54 million active daily users in the three months ended Dec. 31, up 13 percent from 48 million a year ago, but flat from the number of users in the previous quarter.
Zynga also said it lost $435 million, or $1.22 per share, in the fourth quarter on $311 million in revenue. The company, which?trades under the symbol ZNGA on the Nasdaq, fell?$2.55 to close at $11.80 a share.
?They have to work harder to get existing traffic to pay more. That?s a challenging proposition,? said Sterne Agee, an analyst Arvind Bhatia.
One of a crop of new social media technology companies that have launched on the public markets recently, Zynga went public at $10 a share last December, raising $1 billion. Its stock price closed Tuesday at an all-time high of $14.35, up 79 percent from a low of $8 hit on Jan. 9.
Investors are watching to see how the likes of LinkedIn, Pandora and Groupon do ahead of the expected stock market debut of Facebook -- an IPO that?s expected to be one of the most closely followed in recent memory.
Zynga is of particular interest when it comes to Facebook.
In its IPO prospectus last year the gaming site said that 94 percent of its revenue comes from Facebook. On Tuesday, it did not break out a figure for its Facebook revenue, which makes it harder for investors to fathom whether it is reducing its reliance on the social network.
?I think it would helpful for them to report a breakdown between mobile and social,? said Baird Research analyst Colin Sebastian.
Given Zynga's dependence on Facebook for the vast majority of its revenue, investors are closely watching its strategy to diversify and make money from games on smartphones and tablets. Zynga said on Tuesday that it ended the year with 15 million daily mobile users, a five-fold increase from a year earlier.
In its Securities and Exchange Commission filing for an IPO, Facebook revealed that about 12 percent of its revenue comes from Zynga.
Reuters contributed to this story.
tangled ever after last house on the left last house on the left rich forever mixtape blow i am legend the unit
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.