Zynga posts net loss but revenue up 59pc

Online game maker Zynga reported a net loss within the last three months of last year, weighed by hefty stock-compensation expenses and other costs in its first quarter as a public company.

Its adjusted earnings and revenue skidded past Wall St's expectations, however it wasn't enough to raise the stock of the corporate behind the most well liked games played on Facebook.

San Francisco-based Zynga said yesterday that it lost US$435 million ($519.9 million), or US$1.22 per share, within the fourth quarter. That's down from earnings of US$16.1 million, or US5c a share, a year earlier.

Adjusted earnings were US5c a share, surpassing Wall St's expectations. This excludes one-time items including US$510 million in stock compensation costs triggered by the IPO.

Revenue rose 59 per cent to US$311 million as Zynga grew its user base, ad revenue and the cash it makes from games inclusive of CityVille, FarmVille and Zynga Poker.

Analysts surveyed by FactSet expected Zynga to earn US3c a share on revenue of US$302 million.

Zynga said it had 54 million daily active users inside the fourth quarter, up 13 per cent from 48 million within the fourth quarter of 2010. The corporate launched 12 games last year. "Zynga set new records within the year by way of audience size, revenues and bookings," chief executive Mark Pincus said. "We saw great momentum in mobile and advertising and ended the year with a robust pipeline of recent games."

The corporate expects adjusted earnings of US24c to US28c this year.

Analysts are forecasting earnings of US23c a share.

- AP