New Zynga CEO Don Mattrick certainly has an uphill battle ahead of him. The social gaming giant reported significant losses for the previous quarter--and not just the monetary kind.

The company ended the quarter with a net loss of $16 million. However, more distressing for the company is how quickly it is losing active users. Daily active users (DAUs) decreased 45% year-over-year in Q2, from 72 million to 39 million. That's a lot of people that are no longer playing FarmVille.

Monthly unique payers also dropped from 4.1 million to 1.9 million, a drop of over 50 percent.

Mattrick is warning shareholders that "we expect to see more volatility in our business than we would like over the next two to four quarters," a clear indication that the bleeding won't stop for quite some time. However, he's clearly optimistic about his new home. "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," he said.

The social gaming giant has been struggling, with significant layoffs not too long ago.

Pledging to "go back to basics," Zynga's focus will remain on free-to-play social games. Although the company is launching real-money gaming products around the world, Zynga is choosing not to do so in the US. "Zynga will continue to evaluate all of its priorities against the growing market opportunity in free, social gaming, including social casino offerings," the company stated in their report.