After market close on Thursday, Zynga Inc. (NASDAQ:ZNGA) announced preliminary financial results for its third quarter and its revised outlook for the full 2012 year. Both third quarter results and full year outlook were below expectations. ZNGA dropped over 20% early on Friday and although it recovered somewhat during the day, it finished the day down 11.9%. The stock is down over 80% from its all-time high in March.
The company attributed its reduced outlook to lowered expectations for some games including “The Ville”, and delays in launching others. It will also take a pre-tax write-off of between $85 million and $95 million of intangible assets previously acquired in connection with the company’s purchase of OMGPOP.
Followers of the company are focusing more on the number of gamers switching from web and PC based games to mobile devices and offerings from competitors. Zynga has depended almost totally on Facebook users in the past and its transition to a broader user base is not going as well as it had hoped.
Zynga plans to issue full financial results for the third quarter and additional details regarding its updated 2012 outlook on October 24, 2012.
About Zynga Inc. (Source: Zynga Inc.)
Zynga Inc. is the world’s leading provider of social game services, which include Zynga Poker, Words With Friends, Scramble With Friends, Gems with Friends, Draw Something, FarmVille2, ChefVille, CityVille, Bubble Safari and Ruby Blast. For the quarter ended September, 30, 2012, Zynga had approximately 311 million monthly active users playing its games. Zynga’s games are available on a number of global platforms, including Facebook, Zynga.com, Google+, Tencent, Apple iOS and Google Android. Zynga is headquartered in San Francisco, Calif.