There’s good news and bad news for Zynga’s financials. The good news first: Thanks to its purchase of Draw Something developer OMGPOP and some strong releases, the social game publisher beat quarterly revenue estimates from Wall Street, growing its year-over-year revenue to $321 million from $243 million. Zynga says it expects to make from $1.425 billion to $1.5 billion this year in total.
But the bad news is that outside of that big purchase, the company isn’t showing the growth that Wall Street would like. Total monthly active users were up 24 percent, but analysts would prefer to see even more, and claim that Zynga only had a good quarter because of the acquisition.
Zynga also lost $85 million for the quarter. “They had to acquire to raise their numbers, but you’re not going to be able to do that too many times,” said Arvind Bhatia at Sterne Agee.
So Zynga will need to prove that it can sustain its growth outside of major acquisitions if it wants to keep stock prices up. We don’t know much about the financial world, but would planting more corn help?
Zynga posts loss, beats estimates following OMGPOP acquisition originally appeared on Joystiq on Sat, 28 Apr 2012 05:00:00 EST. Please see our terms for use of feeds.
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