Zynga posts loss of $52 million in quarterly earnings
One day after laying off five percent of its workforce, Zynga announced it sustained a quarterly loss of more than $52 million. Despite the sub-optimal Q3 2012 numbers, the company’s relatively high revenue figures (over $316 million) exceeded analysts’ low expectations (in the neighborhood of $300 million). But overall, the company lost $160 million in the first nine months of 2012.
Zynga's higher revenue number comes after an announced $200 million stock buyback and a new partnership with bwin.party—a UK-based real-money online gambling site. The moves sent the company’s stock soaring in after-hours trading: prices rose 13.67 percent, as of this writing, on its closing price of $2.12 per share. These are short-term gains however, and Zynga seriously struggled in recent weeks and months. it’s losing millions of players, remains embattled in lawsuits, took a write-down on OMGPOP, and has lost top corporate talent.
