Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
October 25, 2014
arrowPress Releases
October 25, 2014
PR Newswire
View All

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

Zynga Shows Record Revenue, Reduced Profit In Quarterly Filing
Zynga Shows Record Revenue, Reduced Profit In Quarterly Filing
November 4, 2011 | By Kyle Orland

In a new SEC filing, social gaming giant Zynga reported record quarterly revenue of over $306 million for the period ending September 30, though profits for the company were actually down from the same time a year ago.

The new highwater revenue mark is up 80 percent from the same period last year, but net profits were down nearly 54 percent year-over-year to $12.5 million.

That profit mark is still an improvement from $1.3 million in profits Zynga showed for the quarter ending in June, a result that had put a bit of a damper on the company's planned stock IPO.

Zynga specifically cited the third quarter launches of Adventure World and the Facebook version of Words with Friends in the improved revenue numbers.

Zynga now reports 152 million unique monthly users across its games as of September 30, up from 151 million in June. The average number of those users playing any given day, however, dropped from 59 million to 54 million in the quarter.

The company said it still relied on only 6.7 million unique paying customers for its revenue during the first 9 months of 2011. However, the company now derives only 59 percent of its revenue from its top three titles, down from 78 percent in 2010.

There are now 2,789 Zynga employees across the company's studios.

Related Jobs

Disruptor Beam, Inc.
Disruptor Beam, Inc. — Framingham, Massachusetts, United States

Lead 3D Artist
Red 5 Studios
Red 5 Studios — Orange County, California, United States

Graphics Programmer
Red 5 Studios
Red 5 Studios — Orange County, California, United States

Gameplay Programmer
Gearbox Software
Gearbox Software — Plano, Texas, United States

Server Programmer


Michael Joseph
profile image
Company Revenue Profits %

Microsoft $14.5 billion $5.2 billion 35.86%

Apple $24.7 billion $6 24.29%

Activision $4.447billion $418 million 9.04%

Take Two $1.136billion $ 48.46 million 4.2658%

Elec. Arts $3.589billion (-$276 million) (-7.69%)

*Zynga *$306 million $12.5million 4.084%

*quarterly revenue and profits against annual profits for apple and microsoft and the rest is not exactly fair but... it's been suggested they're worth 15 - 20 billion dollars?

What i find interesting is the idea that Zynga's profits are based not on the number of games they make, but on their number of subscribers. It's not like being able to produce a new throw away product and getting users to buy the next great thing every year... especially if you own 5 great things users are going to buy every year and your goal is to bring that number to 6 and 7 and 8 that those same users will buy each year as the years go on... Zynga perhaps is in the tough situation of trying to forever grow their subscriber numbers.... uh oh... This is the problem with providing services versus providing products if you're a publicly held corporation (or soon to be). I'd be very suspicious of future subscriber number stats supplied by Zynga.

Whereas most companies in the past take years and years to peak and become a steady blue chip style earner... Zynga hasn't even got their IPO yet and they're subscriber numbers are starting to level off...

Maybe something to consider as you hear all the social gaming and gamification advocates make their case... maybe they really really need to expand the player base...

Jane Castle
profile image
@Michael You obviously didn't live through the tech bubble of the 90s....... lol! In a few short paragraphs you have done more analysis on the weakness of this business model than most analysts.

So to you who have not lived through the tech bubble. This game isn't about profit, revenue, losses. That's all crazy talk........ It's all about hyping the company up before the IPO to get that POP on opening day.....

That is what this company is geared for and its main purpose for existing.

Harry Fields
profile image
Zynga is a scourge and blight upon the industry.

Joe McGinn
profile image
I notice they have quickly stopped reporting that they've changed their accounting methods from last year, and that if they hadn't they'd be reporting a loss. Charming as always.