Zynga's Profits Fall 95%, Everything's Still A-Okay
This week the casual game maker announced that its year-on-year profits for the quarter dropped a whopping 95%, but the company isn't worried.
Despite profits for the quarter being a measly $1.3M compared to last year's $27.2M for the same timeframe, Zynga revealed that its revenue continues to rise, landing at $279.1M for the quarter, up 15% from last quarter's $242.9M. While revenue is growing, it has slowed down some, as last quarter's $242.9M was up 24% from the quarter before it.
If your head still isn't spinning from the roller coaster ride of Zynga's financials, the company also stated that, for the first time in history, the revenue it derived from microtransactions and ads was down 4%, coming in at $274.7M compared to last quarter's $286.6M. The drop mirrors a 4% decline in daily active users, which is down to 59M users, compared to last quarter's 62M users.
So what is Zynga's positive spin on all of this? The company points to its lack of new games in early 2011, along with increased spending on acquiring other companies and growing the company internationally. After all, you've got to spend obscene amounts of money to make obscene amounts of money.
As for the future of the company; we're guessing Zynga isn't too worried about getting its daily active users back up.