No seriously, according to the Wall St. Journal …while the social-gaming company is increasing revenue quickly, 130% in the first quarter, it also is highly profitable. That is unlike the recent vintage of Internet darlings. Without excluding stock-compensation expense, its profit margin using earnings before interest, taxes, depreciation and amortization is more than 30%.
Despite a 10% drop in the number of people playing Zynga games through 2010, it is impressive that revenue rose throughout the year. Zynga generates revenue from the sale of virtual goods, essentially tokens sold inside its games. One potential worry: The company notes a "small percentage" of players drive "nearly all" revenue.
The good news is that growth in total players resumed in the first quarter after the company released blockbuster CityVille. Another successful game was launched in June, meaning growth will continue as the company gears up to sell shares to the public in the fall….
Find out more at http://online.wsj.com/article/SB10001424052702304450604576420201067817730.html?mod=WSJ_newsreel_markets
No comments:
Post a Comment