Despite experiencing stronger revenues in Q2 2012 than in Q2 2011, Zynga reported a $22.8 million net loss for the quarter and lowered its outlook for the rest of the year to adjust for "delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something."

The social megalith reported revenue income of $332.4 million for the period, up 16 percent over the same period last year, which sounds good until you get to the company's net loss of $22.8 million -- compare that with the $1.3 million in profit reported in Q2 2011.

Addressing investors, Zynga CEO and founder Mark Pincus lauded his company's successful launch of Bubble Safari, as well as The Ville's increasing popularity. "We also faced new short-term challenges which led to a sequential decline in bookings," Pincus said. "Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web."

Zynga's stock fell during trading as a result of its lowered outlook for the rest of 2012, hitting a low of $4.88 per share before closing the day up at $5.08 a share.

This article was originally published on Joystiq.