TC Teardown: Zynga’s Profit Machine At Risk
Editor's note : In this guest post, entrepreneur Steven Carpenter does a teardown of Zynga's business model and calculates an estimate of its profits. Like YouTube, Twitter, and Groupon, social gaming pioneer, Zynga is a member of the “fastest from founding to $1B valuation” club, having earned its membership in just 19 months. There are two significant traits that distinguish Zynga from its comparables, however. One, Zynga has generated the highest revenue and profitability numbers of any startup ever in such a scant amount of time (more so than even Facebook itself to date). Based on my estimates, Zynga is likely making a 30% net margin on $50 million in revenue a month , or close to $15 million in profit a month . Two, Zynga’s complicated relationship with Facebook means the company has less control of its own destiny. Zynga is under significant pressure to make a series of strategic moves to ensure its continued success. If it cannot do so, its attractive revenue and profitability metrics are certain to be impacted. In this teardown, I will detail how Zynga achieved its rapid success and dive into the key challenges facing the company.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here