Zynga Profits Drop 90-Percent, Further Threatening Its IPO Status

CommanderFrank

CommanderFrank

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Zynga has already delayed its bid to launch an IPO this year and now has had another major setback in the profit department. Reported drop in profits were placed at 90%, which could delay even further the bid to push towards an IPO.

To add to the problems, Develop is reporting that Zynga has seen a massive drop in profits in the second quarter ending on July 30
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All the hype about how social games would conquer everything in the next 5 years and how the market is dieing to be tapped.

Seems its still going through some growing pains.
 
What Godmachine said, but also I think they were trying to grow things way too fast. They should keep it simple, stupid.
 
The upside is this happened before the IPO went public and became a toxic asset.

But how do you get a 90% dip in profits when you don't actually sell anything? Or do they seriously make a lot of money by allowing people to buy in game stuff for their farms or whatever?
 
All their profit prospectus was based on people willing to continue to slooge real money for items in various time-traps like Farmville, where virtually anything worth 'possessing' costs insane amount of farm dollars, which can only be aquired thru real moeny purchases. Eventually people get tired of jumping thru endless hoops, just to have to be out of pocket anyways.. and are quitting in droves.

One of the things Zynga has been trying to do is combine virtually ALL its 1st run games back into Farmville, in an attempt to bolster potential IPO standing. Meanwhile Zynga has been hemorrhaging cash trying to acquire various licensing aspects to further broaden the appeal of their games, but they've already poisoned the well, and folks are pissed at the who bullshit scam they invested such HUGE amounts of time into. They aren't biting.
 
Did anyone else read the article? They didn't have a drop in revenue, revenue actually went up 115%, they merely reinvested the revenue in the company. I'm guessing that the rainy day fund is full and now they're making a push for more market.
 
PS: I hate not being able to edit my fucking posts... I've got to be one of the worst typists in the Universe.. I need an edit button more then I need a belly-button :(
 
I hate that profits are often the only thing quoted. So much more matters. A one-time charge could take you from a huge profit to a huge loss while not changing the company's operations and cash flows. Without more info that article is literally useless.
 
Is it wrong of me to want to own stock because of my faith that idiots will buy stupid stuff?
 
Wonder if that explains why their recruiter said never mind after scheduling a chat last month.. They have no money...
 
another casualty of dotcom bubble 2.0.

who the fuck would invest in this shit ?

how does zynga contribute to society ?
 
Soggy said:
Did anyone else read the article? They didn't have a drop in revenue, revenue actually went up 115%, they merely reinvested the revenue in the company. I'm guessing that the rainy day fund is full and now they're making a push for more market.
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Nobody here reads the article.
Ever.
Fuck, you guys piss me off.
 
OK, so revenue goes up 115%, but profits drop from 14 mil to 1.4 mil.

Got to pay for all the small companies they're grabbing with both hands as fast as they can, got to pay for the new facility with the dog run on the roof and the themed cafeterias. From what I understand they don't pay their employees all that well considering the amount of time employees are expected to be on the job.

They're pushing the envelope, they're pushing too much, too fast and the players are starting to push back. The loss of profit does explain why everything is an in your face BUY THIS FOR REAL MONEY, IT'S ONLY HERE FOR A WEEK!!! and virtual items getting more and more expensive every week. I guess it also explains why these days (relatively new) if there is a problem and customer service is needed, live support will only talk to you if you've spent money. If you're not they tell you to email CS.

Yes I play a few of their games, but not sure how much longer. They do not listen to anyone, they treat their employees badly, they treat their customers very badly, the games are loaded with bad or slipshod coding that you may not notice at first.

Their MAU has dropped -4,288,116 last 7 days because the players a/k/a customers (whether you spend a penny or not) are really getting fed up with being bombarded with things to buy with real money and a shoddy game.

I don't think I'd be in a hurry to buy their stock.
 
ditzilla said:
Yes I play a few of their games, but not sure how much longer. They do not listen to anyone, they treat their employees badly, they treat their customers very badly, the games are loaded with bad or slipshod coding that you may not notice at first.
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Flash can only handle so many elements on the screen at once; thus the horrible slowdown in many FB games. They really should develop standalone games that can still connect to each other, but have a client that can handle the graphics.
 
farmville was fun when it was just a clicky and check back in game. in the last 6 months they jumped the shark and now you can't really do anything without 100 friends also playing and a valid credit card. to upgrade your farm via cc to the max size costs like $450 in farmville cash.

they took out the fun along the way too.
 
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