Zynga, the name behind popular social games such as Farmville and Mafia Wars, has shows a significant drop in their most recent quarterly earnings. The social gaming company has released a plethora of titles across social media and mobile platforms, Facebook, Android and Apple among them.

For their second quarter earnings, Zynga reported revenue of $213 million, which is a 31% drop from last year’s Q2 revenue of $332 million. In addition to the decline in revenue, Zynga has also suffered in their user base, with monthly unique and monthly active users dropping by 36% and 29% respectively.

In the face of these waning numbers, recently appointed Zynga CEO, Don Mattrick had this to say:

“The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity. To do that, we need to get back to basics and take a longer-term view on our products and business, develop more efficient processes and tighten up execution all across the company. We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I’m privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders.”

Mattricks optimism is promising, but it is not without cost. In an effort to cut down on in-house costs, Zynga has implemented a restructuring of the company that will reportedly result in the elimination of 520 jobs.

Source: Polygon

Recently though, it’s share prices have dropped a whopping 40 percent.

Chief operating officer and ex-EA executive John Schappert commented on the same, blaming it’s misfortune on Facebook for changes made in the last quarter.

Facebook made a number of changes in the quarter. These changes favoured new games. Our users did not remain as engaged and did not come back as often.

In that same quarter, Zynga experienced a loss of $22.9 million USD. Considering they scored a profit of $1.4 million USD in the same quarter last year, that’s bad.

Some blame virtual goods shopping, some blame the boom simply evaporating. Whatever the case, Zynga’s in trouble.

Zynga’s profits have fallen by 95%, which probably means the bubble will burst soon. Zynga has published Farmville and Mafia Wars on Facebook and the profits from this year declined from $27 million to $1.5 million.

Which is bad news, right? But their revenues have increased by 15% compared to 24% last year. Zynga is expanding and that could be a reason for such low profits this year. Zynga blamed the lack of profit on competition and lack of new releases.

Zynga will make a public offering shortly and is asking for $1 billion.

Thanks, Desructoid.