baltimoresun.com

« Mint vs. Pageonce: the iPad dilemma | Main | Tech happenings in Baltimore for the next four weeks? »

July 1, 2011

Zynga IPO Facts

zynga-characters.jpg
Zynga, the online social gaming company that's famous for Farmville and Mafia Wars on Facebook, filed for a billion dollar IPO today. This is important because it's apparently the first company to go public that relies on revenue almost exclusively from the sale of virtual goods.

Here's the company's S-1 statement with the Securities and Exchange Commission that discloses new information about the private company. Zynga, for the foreseeable future, is inexplicably inextricably tied to Facebook for its source of revenue from players, but the company hopes to change that. Here's the first financial snapshot we've ever gotten publicly from Zynga:

* We have achieved significant growth in our business in a short period of time. From 2008 to 2010, our bookings increased from $35.9 million to $838.9 million, and our adjusted EBITDA increased from $4.5 million to $392.7 million. For the three months ended March 31, 2010 and 2011, our bookings increased from $178.3 million to $286.6 million, and our adjusted EBITDA increased from $93.6 million to $112.3 million.

* Zynga turned a $90 million profit last year, after losing $53 million in 2009 and $22 million in 2008. * In 2010, our bookings and revenue were $838.9 million and $597.5 million, respectively, which represented an increase from 2009 of $510.8 million and $476.0 million, respectively.

* Since the first quarter of 2009, two or three games have generated the majority of our online game revenue in any particular quarterly period. In addition, substantially all of our revenue is derived from a small percentage of our players.

* Here's Zynga's executive compensation chart (and kudos to LinkedIn founder Reid Hoffman, who raked in $9.5 million in stock awards last year as a Zynga director. He can add that to the pile of money he got from the LinkedIn IPO earlier this year):
table.tableizer-table {border: 1px solid #CCC; font-family: Arial, Helvetica, sans-serif; font-size: 12px;} .tableizer-table td {padding: 4px; margin: 3px; border: 1px solid #ccc;} .tableizer-table th {background-color: #104E8B; color: #FFF; font-weight: bold;}

EXECUTIVEYEARSALARYBONUSSTOCK AWARDSOPTION AWARDSALL OTHERTOTAL
Mark Pincus       
        
Chief Executive Officer, Chief Product Officer and Chairman       
 2010301,154135,00084,085520,239
        
        
Owen Van Natta       
        
Executive Vice President and Chief Business Officer       
 201076,92348,07714,478,75028,595,36362543,199,738
        
        
David M. Wehner       
        
Chief Financial Officer       
 201095,1921,812,74016,087,50062517,996,057
        
        
Steven Chiang       
        
Co-President of Games       
 2010242,3082,876,92125,740,00042,45828,901,687
        
        
Reginald D. Davis       
        
Senior Vice President, General Counsel and Secretary       
 2010200,769615,0003,946,8049,5554,772,128
        
        
Mark Vranesh       
        
Chief Accounting Officer       
 2010200,76955,0001,287,0002,1711,544,940


This is an archived version of the technology blog. For updated coverage, see the current baltTech location: baltimoresun.com/balttech
Posted by Gus Sentementes at 1:09 PM | | Comments (2)
        

Comments

Don't you mean "inextricably tied?"

Haha. Yes. I caught that, too -- I wonder if it was a subconscious slip on my part, as I saw how heavily dependent Zynga is on Facebook. -gs

i work for a company that does tech support for farmville and people truly get addicted to the game like its drugs! They will use there last dime for a stupid accessory on there! SMH

Post a comment

All comments must be approved by the blog author. Please do not resubmit comments if they do not immediately appear. You are not required to use your full name when posting, but you should use a real e-mail address. Comments may be republished in print, but we will not publish your e-mail address. Our full Terms of Service are available here.

Verification (needed to reduce spam):

About Gus G. Sentementes
Gus G. Sentementes (@gussent on Twitter) has been writing for The Baltimore Sun since 2000. He's covered real estate, business, prisons, and suburban and Baltimore City crime and cops. He was one of the first reporters at The Sun to use multimedia tools and Web applications -- a video camera, an iPhone -- to cover breaking news. He hopes to cover Maryland geeks and the gadgets and Web sites they build, and learn -- and share -- something new every day.

Gus has a wife, a young daughter and two feuding cats. They live in Northeast Baltimore.
This is an archived version of the technology blog. For updated coverage, see the current baltTech location: baltimoresun.com/balttech
-- ADVERTISEMENT --

Most Recent Comments
Baltimore Sun coverage
Sign up for FREE business alerts
Get free Sun alerts sent to your mobile phone.*
Get free Baltimore Sun mobile alerts
Sign up for Business text alerts

Returning user? Update preferences.
Sign up for more Sun text alerts
*Standard message and data rates apply. Click here for Frequently Asked Questions.
Charm City Current
Stay connected