Zynga Zonked: Daily User Growth Flat In Q4

By  |  February 15, 2012
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Social gaming firm Zynga Inc. (NASDAQ: ZNGA) showed decent over-the-year growth in many facets of its business in 2011, but one key statistic has flattened over the past three months.

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    Related: Zynga Brings On New Executive VP

    In its first ever earnings release as a public company, Zynga is showing 13% over-the-year growth in active daily users, from 48 million to 54 million for this year’s fourth quarter. But the number of daily active users is unchanged from the end of the third quarter, says MSNBC.com.

    Full-year revenue is up 91% from 2010, to more than $1.1 billion. But for earnings to grow, the company will “have to work harder to get existing traffic to pay more,” as Sterne Agee analyst Arvind Bhatia tells MSNBC.

    Officially, Zynga recorded a $404.3 million net loss for the year. But that number includes $600 million in stock-based compensation costs, the earnings statement shows. The company’s stock price temporarily fell 16% below its Tuesday close in early Wednesday trading, but is still up more than 30% from its initial price.

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