Farmville creators Zynga post Q4 2011 net loss despite $1.14 billion revenue

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Has the bubble burst for social gaming? Zynga, leaders of the Facebook gaming craze and the developers behind Farmville and Words with Friends have revealed their Q4 2011 earnings report, showing huge growth, but also a significant net loss.

Q4 revenue hit $311.2 million, a 58.9% increase over the same period last year. This rise matched statistics for the rest of the financial year, with an impressive 90.8% increase from 2010 to 2011 of $1.14 billion.

Despite the astronomical figures in terms of revenue, Zynga still posted a net loss, which the company attributed to investments in new games and expenses involved with the company’s IPO.

The Zynga brand’s popularity is still going strong though it would seem, with monthly active users reaching 240 million, up 23% over the previous year, and “monthly unique payers” hitting 2.9 million.

As a result, the company remain optimistic for 2012, predicting more growth in the latter half of the year. Which is also great news for Facebook, with Zynga’s credit trading system pulling in an estimated $445 million for Zuckerberg’s empire.

Via: The Verge

Gerald Lynch