3 ms·

zynga has earnings. $87mm of pre-tax cash flow in the first quarter that was just reported. Zynga has had earnings/profits/cash flow for years.

moocow01 14y ago
This is also half the story. Under GAAP, net income was -85 million last quarter and the quarter preceding it was -435 million.
jpdoctor 14y ago
> zynga has earnings. http://finance.yahoo.com/news/zynga-disappoints-again-141528576.html http://finance.yahoo.com/news/zynga-disappoints-again-141528... "Net loss was $85.0 million in the quarter compared with net income of $65.1 million a year ago." I assume you realize the point of having Generally Accepted Accounting Principles is that they are generally accepted. You could maybe create a market for VC-Accepted Accounting Principles (VAAP), but I thought that died in the first tech bubble. Apparently I was wrong.
- fredwilson 14y ago
  GAAP is nonsense. cash flow is what matters. i suggest you go look at all of those non cash charges and see if you think they are really expenses of the business.
  - lsb 14y ago
    Wait, why are generally accepted accounting practices nonsense? And, if so, why are they generally accepted? I don't know much about accounting, so this question is in earnest.
    - fredwilson 14y ago
      they are generally accepted by the accounting profession. but not by investors. investors tend to focus on cash flow. at least the smart ones do.
      - jpdoctor 14y ago
        > but not by investors. At least, those investors interested in the appearance of a viable company, as opposed to those who are interested in a bona fide profitable company.
  - jpdoctor 14y ago
    > GAAP is nonsense. cash flow is what matters. Apparently, GAAP cash flow is news to you. Also, the fact that you're not interested in profitability says everything that I need to know about you and your firm.

3 ms·

zynga has earnings. $87mm of pre-tax cash flow in the first quarter that was just reported. Zynga has had earnings/profits/cash flow for years.

by fredwilson 14y ago

moocow01 14y ago
This is also half the story. Under GAAP, net income was -85 million last quarter and the quarter preceding it was -435 million.
jpdoctor 14y ago
> zynga has earnings. http://finance.yahoo.com/news/zynga-disappoints-again-141528576.html http://finance.yahoo.com/news/zynga-disappoints-again-141528... "Net loss was $85.0 million in the quarter compared with net income of $65.1 million a year ago." I assume you realize the point of having Generally Accepted Accounting Principles is that they are generally accepted. You could maybe create a market for VC-Accepted Accounting Principles (VAAP), but I thought that died in the first tech bubble. Apparently I was wrong.
- fredwilson 14y ago
  GAAP is nonsense. cash flow is what matters. i suggest you go look at all of those non cash charges and see if you think they are really expenses of the business.
  - lsb 14y ago
    Wait, why are generally accepted accounting practices nonsense? And, if so, why are they generally accepted? I don't know much about accounting, so this question is in earnest.
    - fredwilson 14y ago
      they are generally accepted by the accounting profession. but not by investors. investors tend to focus on cash flow. at least the smart ones do.
      - jpdoctor 14y ago
        > but not by investors. At least, those investors interested in the appearance of a viable company, as opposed to those who are interested in a bona fide profitable company.
  - jpdoctor 14y ago
    > GAAP is nonsense. cash flow is what matters. Apparently, GAAP cash flow is news to you. Also, the fact that you're not interested in profitability says everything that I need to know about you and your firm.