Playdom Is Profitable With $50 Million Revenues, Says CEO

Playdom CEO John Pleasants

Social gamesmaker Playdom is profitable, with 2009 revenues that will surpass $50 million, CEO John Pleasant’s told ThinkEquity’s Atul Bagga. (Download a PDF of the full interview here.)

OK, so what’s Playdom again?

Playdom is the third biggest player in the social games space behind Zynga, which took an $180 million investment from Russian firm DST yesterday, and Playfish, which EA (ERTS) acquired for $300 million plus a $100 million earnout earlier this fall.

How do they make all that money?

John told Atul that Playdom makes 75% of its money selling users virtual goods. 15% of its revenues are from third-party advertisers that buy virtual goods for users in exchange for those users trying a product (this is called “offers” marketing). Advertising accounts for 10% of Playdom’s revenues.

Too see precisely how Playdom makes money selling virtual goods, don’t miss: How A Stupid Facebook Game Makes Millions.

Some more quick facts:

  • Playdom has 28 million monthly active users who play 15 different games.
  • The number of games will double in the next year.
  • 60% of these users come from MySpace. 40% come from Facebook.
  • Playdom has 220 employees.
  • John says the social games industry could reach $3-5 billion over the next three years.
  • Playdom users are typically 18 to 35 years old.

Still confused? Then you really, really should read: How A Stupid Facebook Game Makes Millions.

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