When 5% Matters: A Zynga Saga
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Following an amended S-1 filing for multiplayer online game maker Zynga last week, sources are saying the company's net income took a drastic hit during the quarter ended June 30th.
A report from Business Insider contends Zynga's profits are down 90 percent from $14 million to $1.4 million.
from Gamasutra (real website, not sure if it's GAH-mah- or GAE-mah-sutra) suggests Zynga's profits dropped from $27.2 million to $1.3 million, a 95 percent reduction. The data from Gamasutra is questionable as the site compared the quarter ended last June to the one ended in September 2010. Also, $1.39 million generally rounds up to $1.4 million.
Both sources agree Zynga's bookings were down for the first time in company history -- about 4 percent from last quarter. Bookings were up 41 percent from the same period last year.
Zynga blamed the drop in bookings on reduced daily users. Zynga's daily users showed a 4.8 percent sequential drop and a 1.7 percent year-over-year dip.
As some are concerned about the vitality of a company so closely tied to one resource -- namely, Facebook -- Zynga has been struggling to commence its IPO. With Facebook irking users by implementing a slew of new changes, many of which expose more information, investors might question whether Zynga will have another sour quarter and possibly scrap IPO plans indefinitely.
A report from Business Insider contends Zynga's profits are down 90 percent from $14 million to $1.4 million.
from Gamasutra (real website, not sure if it's GAH-mah- or GAE-mah-sutra) suggests Zynga's profits dropped from $27.2 million to $1.3 million, a 95 percent reduction. The data from Gamasutra is questionable as the site compared the quarter ended last June to the one ended in September 2010. Also, $1.39 million generally rounds up to $1.4 million.
Both sources agree Zynga's bookings were down for the first time in company history -- about 4 percent from last quarter. Bookings were up 41 percent from the same period last year.
Zynga blamed the drop in bookings on reduced daily users. Zynga's daily users showed a 4.8 percent sequential drop and a 1.7 percent year-over-year dip.
As some are concerned about the vitality of a company so closely tied to one resource -- namely, Facebook -- Zynga has been struggling to commence its IPO. With Facebook irking users by implementing a slew of new changes, many of which expose more information, investors might question whether Zynga will have another sour quarter and possibly scrap IPO plans indefinitely.
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