ZYNGA FILES FOR $1 BILLION IPO: It Did $235 Million In Revenue, Earned $12 Million In Q1

mark pincus zynga

Photo: Flickr/Jdlasica

Zynga has just filed with the SEC to go public.The company is on pace to generate well over $1 billion in revenue this year, and earn over $36 million. 

It’s a pretty slim profit margin considering reports were circulating that Zynga was earning $400 million on $800 million in revenue earlier this year.

It wants to raise $1 billion from the IPO, and it already has $1 billion in cash on hand.

Here are the key numbers/information/things that jumped out at us:

  • Zynga is looking to raise $1 billion.
  • The IPO is being underwritten by Morgan Stanley, Goldman, BofA, Barclays, JP Morgan and Allen&Co.
  • Zynga has 60 million active daily users, 232 million monthly users, and sees 2 billion minutes of play per day.
  • March 2011 quarter revenue $235 million, up from $101 million in 2010. Zynga’s revenue comes from the sale of virtual goods and advertising. Virtual goods accounted for $223 million.
  • Net income for the March 2011 quarter was $11.8 million up from $6.5 million in March 2010 quarter.
  • Zynga has $1 billion in cash, and securities on hand.
  • In the risk factors, Zynga says, “If we are unable to maintain a good relationship with Facebook, our business will suffer.” It also says, “A small percentage of our players account for nearly all of our revenue.”
  • Zynga spent $150 million in R&D for all of 2010. R&D has been up every quarter, and Zynga says it’s due largely to increases in headcount.
  • Cash flow from operations was $104 million for the March quarter.
  • Mark Pincus’ salary for 2010 was $300,000, his total compensation was $520,239
  • EVP and Chief Business Officer Owen Van Natta’s total compensation for 2010 was $43 million, the bulk of it was from stock awards and option awards.
  • Mark Pincus owns 16% of the company and he’s sold $105 million shares back to Zynga.
  • Kleiner owns 10.5% of the company.
Zynga Bookings And Revenue and EBITDA

Photo: SEC

 See also: Here’s Who Gets Rich Off The Zynga IPO.

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