High revenues boost Zynga’s IPO filing to $1b

Social gaming platform Zynga filed for a US$1 billion initial public offering last week. Its high valuation is due to impressive stats, Mashable reported. This includes 232 million monthly active users and $597 million in revenue in 2010 alone.

If everything goes as the gaming company hopes, it will be worth more than $15 billion.

Interestingly enough, its user base hasn’t grown in the past year, but revenue grew 392 percent from 2009 to 2010, paidContent noted. In 2010, Zynga made $27.9 million profit on revenues of $597.5 million. In the first quarter of this year, the company’s revenue was $235.4 million, up another 133 percent from last year.

Still the fact that user numbers haven’t grown is likely to cause concern for investors, Mashable noted:

“The company had 236 million monthly active users in Q1 2010, the exact same mount it had in Q1 2011. It actually had more daily active users in Q1 2010 than Q1 2011. We suspect that it’s due to the rapid rise of FarmVille. It’s difficult to consistently create hit games at that level.”

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