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Zynga, Inc.
An SI Board Since July 2011
Posts SubjectMarks Bans Symbol
324 34 0 ZNGA
Emcee:  Glenn Petersen Type:  Unmoderated
Zynga, Inc., which describes itself as “the world’s leading social game developer,” has filed a registration statement. Mark Pincus, Zynga’s founder, named the company after Zinga, his deceased French bulldog

Company website: zynga.com

SEC filings: sec.gov

From the Company’s S-1, filed July 1, 2011:

We are the world’s leading social game developer with 232 million average MAUs in 166 countries. We have launched the most successful social games in the industry in each of the last three years and have generated over $1.5 billion in cumulative bookings since our inception in 2007. Our games are accessible on Facebook, other social networks and mobile platforms to players worldwide, wherever and whenever they want. We operate our games as live services and continually enhance them by adding new content and features. All of our games are free to play, and we generate revenue through the in-game sale of virtual goods and advertising.

We are a pioneer and innovator of social games and a leader in making play a core activity on the Internet. We believe our leadership position in social games is the result of our significant investment in our people, content, brand, technology and infrastructure. Our leadership position in social games is defined by the following:

Large and Global Community of Players. According to AppData, we have more monthly active users on Facebook than the next 15 social game developers combined. Our players are also more engaged, with our games being played by more than 60 million average DAUs worldwide. According to AppData, we have more daily active users than the next 30 social game developers combined.

Leading Portfolio of Social Games. We have many of the most popular and successful online social games, including CityVille, FarmVille, Mafia Wars, Words with Friends and Zynga Poker. A Zynga game has been the most popular game on Facebook every month since the beginning of 2009. According to AppData, we have the top five social games on Facebook based on daily active users. On mobile platforms, we have several of the most popular games, including Words with Friends and Hanging with Friends, which are currently the top two games in the word category in the Apple App Store for iPhone.

Rapid Game Growth. Our games have achieved rapid and widespread adoption. FarmVille grew to 43 million MAUs in its first 100 days and CityVille grew to 61 million MAUs in its first 50 days. Our newest web-based game, Empires & Allies, grew to be the second most popular game on Facebook less than a month after launch. In June 2011, we launched Hanging with Friends, which became the most downloaded game in the Apple App Store for iPhone during its first week.

Scalable Technology and Data. We process and serve more than a petabyte of content for our players every day, a volume of data that we believe is unmatched in the social game industry. We continually analyze game data to optimize our games. We believe that combining data analytics with creative game design enables us to create a superior player experience.

We leverage our scale to increase player engagement, cross-promote our portfolio of games, continually enhance existing games, launch new games and build the Zynga brand. We believe our scale results in network effects that deliver compelling value to our players, and we are committed to making significant investments that will further grow our community of players, their engagement and our monetization over time.

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.

Underwriters: Morgan Stanley, Goldman Sachs & Co., Bank of America Merrill Lynch, Barclays Capital, JPMorgan Chase and Allen & Company, LLC

Estimated gross proceeds (preliminary): $1,000,000,000

Stock symbol: Unknown

Revenue
Three months ended March 31, 2011: $235,421,000
Three months ended March 31, 2010: $100,927,000
Year ending December 31, 2010: $597,459,000
Year ending December 31, 2009: $121,467,000
Year ending December 31, 2008: $19,410,000

Operating profits (loss)
Three months ended March 31, 2011: $28,773,000
Three months ended March 31, 2010: $6,315,000
Year ending December 31, 2010: $125,471,000
Year ending December 31, 2009: ($52,778,000)
Year ending December 31, 2008: ($22,583,,000)

Net income (loss)
Three months ended March 31, 2011: $11,805,000
Three months ended March 31, 2010: $6,435,000
Year ending December 31, 2010: $90,595,000
Year ending December 31, 2009: ($52,822,000)
Year ending December 31, 2008: ($22,115,000)

Zynga calculates EBITDA as earnings before interest, taxes, depreciation and amortization, gain (loss) from legal settlements, stock compensation and change in deferred revenue.

Adjusted EBITDA
Three months ended March 31, 2011: $112,263,000
Three months ended March 31, 2010: $93,552,000
Year ending December 31, 2010: $392,738,000
Year ending December 31, 2009: $168,187,000
Year ending December 31, 2008: $4,549,000

“Bookings” is a non-GAAP financial measure used by Zynga. It is the gross amount of the revenue collected from the sale of virtual goods in its online games and from advertising that would have been recognized in a period if the company recognized all revenue immediately at the time of the sale. The revenue is recognized over the estimated average life of the purchased virtual goods or as the virtual goods are consumed. The “bookings” not recognized are recorded as deferred revenue on Zynga’s balance sheet. It is important to note that the cash from those deferred revenues is already in the bank.

Bookings
Three months ended March 31, 2011: $286,598,000
Three months ended March 31, 2010: $178,318,000
Year ending December 31, 2010: $838,896,000
Year ending December 31, 2009: $328,070,000
Year ending December 31, 2008: $35,498,000

Deferred revenue
Three months ended March 31, 2011: $516,413,000
Three months ended March 31, 2010: $301,190,000
Year ending December 31, 2010: $465,236,000
Year ending December 31, 2009: $223,799,000
Year ending December 31, 2008: $16,538,000

Daily active users (DAU): Zynga defines DAUs as the number of individuals who played one of Zynga’s games during a particular day. Under this metric, an individual who plays two different games on the same day is counted as two DAUs. Similarly, an individual who plays the same game on two different platforms (e.g., web and mobile) or on two different social networks on the same day would be counted as two DAUs. Average DAUs for a particular period is the average of the DAUs for each day during that period.

Average DAUs (in millions)
Three months ended March 31, 2011: 62
Three months ended March 31, 2010: 67
Year ending December 31, 2010: 56
Year ending December 31, 2009: 41
Year ending December 31, 2008: N/A

Monthly active users (MAUs: Zynga defines MAUs as the number of individuals who played a particular game in the 30-day period ending with the measurement date. Under this metric, an individual who plays two different games in the same 30-day period is counted as two MAUs. Similarly, an individual who plays the same game on two different platforms (e.g., web and mobile) or on two different social networks in a 30-day period would be counted as two MAUs. Average MAUs for a particular period is the average of the MAUs at each month-end during that period.

Average MAUs (in millions)
Three months ended March 31, 2011: 236
Three months ended March 31, 2010: 236
Year ending December 31, 2010: 217
Year ending December 31, 2009: 153
Year ending December 31, 2008: N/A

Monthly unique users (MUUs): Zynga defines MUUs as the number of unique individuals who played any of Zynga’s games on a particular platform in the 30-day period ending with the measurement date. An individual who plays more than one game in a given 30-day period would be counted as a single MUU. However, because the company cannot distinguish unique individuals playing across multiple platforms, an individual who plays any of Zynga’s games on two different platforms (e.g., web and mobile) in a given 30-day period would be counted as two MUUs. Because many of Zynga’s players play more than one game in a given 30-day period, MUUs are always lower than MAUs in any given time period. Average MUUs for a particular period is the average of the MUUs at each month-end during that period.

Average MUUs (in millions)
Three months ended March 31, 2011: 146
Three months ended March 31, 2010: 124
Year ending December 31, 2010: 116
Year ending December 31, 2009: 86
Year ending December 31, 2008: N/A
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ReplyMessage PreviewFromRecsPosted
324Zynga sees net loss widen but reaffirms 2014 outlook Mike Snider, USA TODAY 7:Glenn Petersen-November 7
323Another disappointing quarter from ZNGA. The press release: finance.yahoo.com Glenn Petersen-August 7
322Suma, I don't currently own ZNGA and I am at a loss as to what to tell you.Glenn Petersen-May 14
321I have lost more money on this damnable stock.Every day it is down.I am down so Suma-May 9
320Rovio Profit Falls by More Than Half Maker of Angry Birds Game Trying to AdjustGlenn Petersen-April 28
319The press release: finance.yahoo.com Zynga Misses in First Quarter, But Touts NGlenn Petersen1April 23
318I am not inclined to criticize a company for taking advantage of an open window Glenn Petersen1April 23
317Why Zynga looks well positioned Early in February, Zynga's stock price surgJakeStraw-April 8
316Wedbush analyst Michael Pachter reiterated an Outperform rating and $7 price tarThe Ox-April 7
315I understand the worries. Don't get me wrong. At the same time, the cash fThe Ox-April 7
314The problem for KING is that many people don't believe they can follow up onGlenn Petersen-April 6
313Just too a look and it appears KING has 3 times the cash flow per share of EA. The Ox-March 26
312My comment was made in jest and out of a sense of civic pride (or shame).Glenn Petersen1March 26
311ot pay-for-play was limited to Illinois politics. No way! We may corner the maThe Ox-March 26
310Are you suggesting that analysts and commenters can be bought? How shocking. :) Glenn Petersen-March 26
309So the company came out at a fairly reasonable price and didn't need people The Ox-March 26
308It will be a bad day for ZNGA. The KING IPO opened down: ‘Candy Crush’ Maker TrGlenn Petersen-March 26
307Well today is not looking good at all. We have fallen from five bucks PLUS to a Suma-March 26
306ZNGA will probably get a sympathetic bounce if the KING IPO is viewed as successGlenn Petersen-March 26
305Are you hoping ZNGA will have the same luck ? The chances are ?Suma-March 26
304Candy Crush gets priced tonight: Candy Crush comes to Wall Street, should invesGlenn Petersen-March 25
303 At GDC Shindig, Don Mattrick Says Zynga Turnaround Is Halfway There By Eric JoGlenn Petersen-March 20
302What’s Candy Crush Really Worth? Posted by James Surowiecki The New Yorker MarGlenn Petersen-March 12
301The KING pricing could provide a sympathetic bounce for ZNGA: Candy Crush Saga Glenn Petersen-March 12
300Has Candy Crush reinvented the wheel. Probably not. One-Hit Wonders by James Glenn Petersen-March 10
299ZNGA up in a down day. Zynga Reboots Three Of Its Biggest Franchises on Mobile Glenn Petersen-March 3
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