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Zynga files for IPO - reveals 2010 revenues of $597m

Stuart Dredge
Zynga files for IPO - reveals 2010 revenues of $597m

148m monthly unique users who spend 2bn minutes a day playing the company's social games.

Social games publisher Zynga has filed its long-awaited IPO document, which could value the company at $1 billion. The S1 document also reveals key metrics about the company's growth so far.

Zynga says it has 148 million monthly unique users in 166 countries, creating and storing more than 38,000 virtual items every second, and playing the company's games for two billion minutes a day.

The company posted revenues of $19.4 million in 2008, $121.5 million in 2009 and $597.5 million in 2010 - and $235.4 million in the first quarter of 2011 alone. Zynga's net income for 2010 was $90.6 million, and $11.8 million in Q1 2011.

$574.6 million of Zynga's 2010 revenues came from players buying virtual items within its games, while just $22.8 million came from advertising.

In the 'risk factors' section of the document, Zynga points to the importance of maintaining a good relationship with Facebook if its business is to prosper, and also warns that "a small percentage of our players account for nearly all of our revenue".

It also highlights the importance of mobile for the company. "We have limited experience developing games for mobile platforms. We expect to devote substantial resources to the development of our mobile games, and our limited experience makes it difficult to know whether we will succeed in developing such games that appeal to paying players or advertisers," explains the S1 document.

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Tags: Games , ipo , zynga , Social

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