Zynga saw its share-price drop 37% last night after announcing its Q2 financials, seen by analysts as disappointing. The company posted revenues of $332m and a net loss of $22.8m for the quarter, below expectations. Zynga ‘fessed up to the reasons, including reduced expectations for its Draw Something mobile game, and tweaks to Facebook’s viral algorithms.
More than ever, Zynga sees mobile as key to its future stable growth. “We grew our mobile footprint five-fold in the year to 33 million daily active users making Zynga the largest mobile gaming network,” said CEO Mark Pincus – we’re wondering if Rovio will have anything to say about that, given Angry Birds had 30m DAUs back in October 2011.
Anyway, Pincus: “We’re optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web.” Thus far, though, Zynga hasn’t been able to dominate mobile in the same way it did Facebook – success in that space isn’t a given.