Chillin' out till it needs to be funded
Zynga got a first taste of digital exprctations being lost aka ‘Twitterzone’ for all of us as investors rejected its $ half-a-billion loss on stock based compensation expenses as a sign of what it could never get. Social media company Twitter was the first sign the social web would never be monetized even as Facebook promises almost $10 bln of revenue int he next three years instead. Zynga’s reported metric that will be charged with the company’s failure on the bourses was its monetization of 6.1 cent per Daily active user, which for Cityville alone amounts to $490,000 everyday.
The company was expected to not cross the revenue hurdle from last year at $306.8 mln but produced a topline of $311 mln for Q4, the previous 3 quarters managing 25% , 10% and 15% in Topline growth. its profits came to $45 mln on $210 mln in the January 2010 quarter
Stock based compensation should probably be revised for digital tenders for the first few years, developers needing incentive could then spawn the new generation of silcon Valley tech instead of burdening fragile social economies used to a reward point after an average of 23 battles or 16 sttings on the game which Zynga exchanges for one real dime at best.