Holding on to 9 mill DAU even after 12 weeks of its launch. solid revenue expected this Q from this franchise. it was mentioned during Q2 earnings call it generates close to $1mill a day
Cityville 2 should go into hyper growth very soon ..cityville is most successful social game ever
interesting that your post started much debate. I really don't understand why so much ngativity for a $2 stock with $1.25 in net cash !!! .. Every where i read, it talks about doom and gloom about zynga ...
Farmville 1 peaked at 30 million users, over 3 times the users that this sequel has. Farmville 1 was developed in five weeks and ten people, whereas the development of farmville 2 took over a year with a development staff of 50.
In a way you're correct that farmville 2 is a hit since comparing it to other titles Zynga has introduced this year it has fared well. But in comparison to the ROI for older titles such as Farmville 1 or Mafia Wars - this pales in comparison.
even if you take 200 k/annum (very high usually its between 100 k to 150 k ) salary for 50 people for 1 year the development cost will come to $10 mill at high end . considering farmville 2 is generating between $20mill-$30 mill a month so its already in profit . the development cost is already part of this years results so revenue goes towards profits.
the key point is while zynga is growning in mobile ( up from 6 % q3 fy11 to 20% in q3 fy 12 ) are web based social game still viable and has a audience and looks like answer is yes. something to consider and not ignore while being short sighted.
one last point zynga has absorbed most of the cost this year ( sock option, z cloud , write-offs ) so any additional revenue will affect the gross margin and eps positively next year.
we don't know monetization of farmville 2 compared to farmville. While DAU is lower, maybe users spend more money in farmville 2.
Also staff of 50 for 1 year (assuming $200k salary) is $10M, so if this generated around $700k a day after facebook cut, it is still a great ROI
that is my thought too .. i am thinking that cash - debt is about $1B, so znga's games are selling for about $700M
farmville 2 as you said is a major hit
poker has been a hit for long time
cityville 2 is wait and see
and you have the other ones
i think these are worth way more than $700M, and this company isselling for way less than book value for a leader in its category ..
i think if znga had launched farm ville 2 and city ville 2 3 months ago, the stock would be over $5 now .. they are getting a hang of when they should release updates
this fad of paying to play farmville is a thing of the past... the term hypergrowth is used (in my experience) by small garage-start-ups with a cool young talented gaming team! zyng is done sir!
i doubt , if a game earns $1 mill a day its not done . best mobile games earn $200-300 k a day and that too in the highly fragmented market which makes the shelf life short. . Farmville genre has audience in 50 % of population (females ) , its not going anywhere.