Zynga IPO Facts
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):
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| EXECUTIVE | YEAR | SALARY | BONUS | STOCK AWARDS | OPTION AWARDS | ALL OTHER | TOTAL |
|---|---|---|---|---|---|---|---|
| Mark Pincus | |||||||
| Chief Executive Officer, Chief Product Officer and Chairman | |||||||
| 2010 | 301,154 | 135,000 | — | — | 84,085 | 520,239 | |
| Owen Van Natta | |||||||
| Executive Vice President and Chief Business Officer | |||||||
| 2010 | 76,923 | 48,077 | 14,478,750 | 28,595,363 | 625 | 43,199,738 | |
| David M. Wehner | |||||||
| Chief Financial Officer | |||||||
| 2010 | 95,192 | 1,812,740 | 16,087,500 | — | 625 | 17,996,057 | |
| Steven Chiang | |||||||
| Co-President of Games | |||||||
| 2010 | 242,308 | 2,876,921 | 25,740,000 | — | 42,458 | 28,901,687 | |
| Reginald D. Davis | |||||||
| Senior Vice President, General Counsel and Secretary | |||||||
| 2010 | 200,769 | 615,000 | 3,946,804 | — | 9,555 | 4,772,128 | |
| Mark Vranesh | |||||||
| Chief Accounting Officer | |||||||
| 2010 | 200,769 | 55,000 | 1,287,000 | — | 2,171 | 1,544,940 |
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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
Posted by: Editing is Dead | July 1, 2011 2:57 PM
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
Posted by: Mike | July 1, 2011 3:02 PM