Zynga Raises Forecast Losses to $105 Million for Q3 Financials
Preliminary figures released by Zynga for their third quarter financials don't really paint the company in a positive light. Zynga expects between $300 million and $305 million in revenues. Net losses are expected to be between $90 million to $105 million.
The company asserts that the loss is due to the planned writeoff of half of their acquisition of OMGPOP.
"The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole we did not execute to our satisfaction," said Zynga CEO Mark Pincus. "We are continuing to invest in our mobile business where we have one of the strongest positions in the industry. These actions support our strategy to transition from being a first party web game developer to a multiplatform game network. We remain optimistic about the opportunity for social gaming and the power of our player network of 311 million monthly active users."
Expectedly, stock prices in Zynga were down 20% following the announcement by the company of the forecast losses. In looking towards the future, Zynga's CEO Mark Pincus outlined where they expect the company to go in Q4.
"So why are we lowering 2012 guidance? There are a few factors contributing to a weaker than expected outlook for Q4. The reduced performance of some of our live web games is continuing to impact results and we have several new games which are at risk of launching later than expected."