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You can find everything that Zynga has reported here (particularly p. 59): http://www.sec.gov/Archives/edgar/data/1439404/000119312511253371/d198836ds1a.htm htt
by vtail 15y ago
You can find everything that Zynga has reported here (particularly p. 59): http://www.sec.gov/Archives/edgar/data/1439404/000119312511253371/d198836ds1a.htm http://www.sec.gov/Archives/edgar/data/1439404/0001193125112...
When they (Gamautra) say "year-on-year", they actually compare Q2 2011 to Q3 2010, which is not standard; in general, you would want to compare Q2 to Q2 to account for seasonality of demand etc.
You can see that their sales and marketing expenses stayed roughly the same over the last 3 quarters, but there is a huge rise in R&D (almost 2x from Q4 10 to Q2 11), G&A and some small increase in cost of revenue (Facebook credits?).
- vtail 15y agoAll numbers are in mn USD Revenue Q3 2010 .. Q2 2011: $170.7 $195.8 $242.9 $279.1 Total cost and expenses: 136.4 124.3 206.7 266.1 - Cost of revenue: 49.9 51.6 67.6 78.1 - R&D: 39.8 51.5 71.8 95.7 - Sales and marketing: 28.9 38.3 40.2 38.1 - General and administrative: 17.8 (17.1) 27.1 54.2 Income (loss) from operations: 34.3 71.5 36.2 13.0 Net income: 27.2 43.0 16.8 1.4
- kokey 15y agoSpending lots on R&D, and sales spend being flat while revenues increasing like that. Looking pretty healthy to me.
- zerostar07 15y agoOn the other hand they appear to be overspending in R&D, given that their primary products are derivative copycats of everything that's popular. (or are bandwidth and servers considered R&D?)
- Kadrith 15y agoMaybe they are trying to create something big that is not a copycat.
- danmaz74 15y agoThank you for the answer. So, the biggest costs are in R&D, so actually they should more an investment than expenses (but I wonder if sw maintenance is included there too). By the way, does "General and administrative" include the infrastructure costs?