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The New King
Blog Submitted by Mojizhi on 11/25/2011 at 10:47 AM Report Blog

 

Zynga Inc., a company that sells imaginary tractors and other make-believe goods in online games, plans to raise some very real money from public investors with Soccer jersey. After weeks of speculation, the San Francisco start-up—maker of “FarmVille,” “CityVille” and other games played on Facebook’s website—on Friday filed for Players can then brag about the vibrancy of their virtual properties to friends on Facebook, in some cases inspiring envious friends to fork over money to Football Shirts Wholesale fluff their own virtual nests. During the first quarter of 2011, 94% of Zynga’s $235 million in revenue came from virtual goods, while the remainder was generated by advertising, according to the company’s IPO filing.  an initial public offering in a deal that could value it as high as $20 billion, said people familiar with the matter.

Zynga is the latest in a wave of new Web companies—a list that includes LinkedIn Corp., Pandora Media Inc. and soon-to-go-public Groupon Inc.—seeking to exploit the appetite of public investors for fast-growing Internet brand names. Unlike those companies, though, many of La Liga football shirts wholesale which are unprofitable or have warned that they will bleed red ink as they continue to spend to grow, the highly anticipated filing from four-year-old Zynga showed it is making money. Zynga with Spanish League Football Shirts reported net income of $91 million on revenue of $597 million last year, up from a $53 million loss on revenue of $121 million in 2009.

 ”Their rate of growth is amazing,” said Michael Pachter, an analyst at Wedbush Securities, whose firm isn’t involved in the IPO. Zynga’s filing revealed its revenue comes almost entirely from the sale of virtual goods within its otherwise free games, a business that’s largely alien to U.S. investors but is common among games companies in China and South Korea. There is a whimsical array of BARCELONA top goods that can be purchased within Zynga’s games using real money, from tractors in FarmVille that help make players’ virtual fields more productive, to “energy” in CityVille that allows players with Brazilian football team shirt to build structures and perform other activities.

While buying these goods isn’t necessary to play Zynga’s games—in fact, the company said in its filing that only a small percentage of its players ever spend anything—they help players speed up their progress in them, allowing them to more quickly erect a teeming metropolis in CityVille or a FarmVille field teeming with crops. Zynga’s filing also shows how it accounts differently for Cheap Barcelona away football shirts its revenue, depending on the type of virtual goods sold. Revenue from “consumable” virtual goods like energy is recognized by the company immediately after a player’s game avatar consumes it. In contrast, revenue from “durable” virtual goods like tractors, which can be used over and over again, is recognized over the estimated average playing period of players for particular Zynga games, a period that ranges between 10 and 25 months, Zynga with Germany jersey soccer said in its filing. 

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