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Zynga, Inc. Message Board

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  • jeanpaul.gottier jeanpaul.gottier Jul 22, 2012 12:48 PM Flag

    ZNGA-- the bottom line

    you are wrong my friend. look at 3/31/12 financials, R&D went from $72 million to $187 million in 3/31/12. thats a 160% change!! this is operating expenses. has nothing to do with any one time expenses.

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    • For example, in 2011 Zynga (Nasdaq: ZNGA) lost $404 million. But when we look at its statement of cash flow, we see that $600 million in expenses was stock-based compensation expense – which is a non-cash item. It still needs to be accounted for on to determine profitability, but it doesn’t represent cash going out the door in the same way paying employees’ salaries does. So that $600 million gets added back to cash flow. After a few other small adjustments, the company’s cash flow from operations was $389 million.

      http://www.topstockanalysts.com/index.php/2012/05/16/how-these-money-losing-companies-are-actually-crushing-the-market/

      You stand corrected.

      • 1 Reply to brevin_marley
      • brevin_marl... apparently you didnt go to school in finance and accounting like i did. the $600 million "Stock based compensation" is a balance sheet item and has nothing to do with the income statement of a company. If you look on the balance sheet, this item affects the net worth aka stockholder equity of a company not the net income of an entity. once again you are stand corrected yourself. also, all you need to do is look at the R&D costs in year end 12/31/11 --- this particular cost shot up from $149.5 million in 12/31/10 to $727.0 million in 12/31/11, thats a whopping 386.0% increase in costs. now do you call that good management or a good company?? furthermore, look at the 3/31/12 data, same thing happened with the R&D costs, they keep more than doubling. this company wont take this kind of hit any longer.

 
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