الاثنين، 19 نوفمبر 2012

Zynga

Do you think Zynga Is NOT "Profitable"



zynga logo



That's technically correct, but not actually true, because of the special accounting Zynga uses for "revenue". 


Zynga discloses two types of revenue metrics: "Revenue", and "Bookings."
Of these, "bookings" is actually a more meaningful measure of the company's performance in a given period.  This is because "Bookings" represents the dollar-amount of virtual goods sold to game players in the period, whereas "Revenue" is the amount bought in prior periods amortized over the expected life of the virtual goods.
Got that?
"Bookings" is what Zynga actually sells in the quarter or year. "Revenue" is what Zynga sold over the past 4-6 quarters and then spread over the next year or year-and-a-half.


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