FACTS. Revs will ramp fast and expenses will drop like a rock.
Zynga's biggest advantage and obstacle was "The Agreement". It helped launch Z like no other platform could.
Rev Share: no other game maker was forced to share rev's now Z keeps the lion's share.
Exclusivity: no other game maker was forced to create/publish games exclusively for FB, now ZNGA can publish for anyone and there are plenty of those to go around - just look at Publishers Clearing-House and how they use web games to drive ad revs or state lotteries promoting scratch-off games or Network television looking for new rev streams.
Distribution: no other game maker was prohibited from delivering games outside of FB. Z now has this capability well beyond its competitors -including Amazon. Think about this...Market expansion in... mobile via direct to telecoms deals with VZ-ATT etc with rev share on increased data usage or through TV Networks/Cable/Satellite distribution.... comcast/dish/iTV ~~ gaming entertainment channels. Watch gaming consoles die out and fall to smartphones/Ipad mini's that control set top boxes soon..
Ad Rev's: when no other game maker was forced to publish FB Ad's... Now Z can offer Ad's direct to marketing firms and to larger markets- mobile.
User Data Share: FB id requirement gone and sharing user data will be a two-way street.
Real Money Gaming: The New Agreement specifically names Ireland properties which is the HUB for launching RMG Europe. By the way - Bwinparty in line for Nevada gaming license and will bring Zyng'a users to the tables in conjunction with MGM casino's properties.. watch & learn.
As for Staff departures - The CFO was brought in to handle the IPO. That's done and he's no longer needed. The Chief Rev Officer and Treasurer have no clue about real Money Gaming - so they're out - no surprise at all. The rest were gifted a few weeks severance and let go for performance.
Revs to ramp fast and expenses will drop like a rock.
VERY NICE CALL!!! - Just signed with Synacor for multi-platform distribution channels. They run HBO GO. Hulu and more - with solid COMCAST and VERIZON positioning...- very nice call!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I somewhat agree on the "expenses dropping" point. For the last couple of quarters they have had a LOT of big writeoffs for stock compensation and the OMGPOP acquisition. Once those level off, they will work back to profitable.