Loading...

Zynga Mobile & Facebook Apps
Zynga (Nasdaq: ZNGA) went public last week raising $1 billion dollars in its IPO at $10 per share.  The company is making money a lot of money through its digital goods sales and clearly has the number one position in the mobile app gaming space.  Zynga has a market cap of $6.5B and will do almost $1 billion dollars in revenue this year while growing like a weed with over 100% growth.  There isn't much that can stop this company from growing except may Facebook and I think it has the potential to be the next huge IPO winner like Google back in 2000 when it went public at $100 per share.  Companies like Microsoft XBox, Play Station and Electronic Arts should be very nervous about their business models which will certainly be challenged in the future by Zynga.

The growth opportunity for Zynga is enormous and their games are incredibly engaging.  For older folks Words with Friends and Poker are most compelling and have a lot of user upside growth remaining.  The iPad and Kindle tablet revolution is making the experience incredible on 7 to 10 inch tablet screens while lying on the coach or in bed.  Most people play the games for free and a small portion of users purchase in game upgrades.  I wouldn't be surprised to see advertising on the game platforms in the coming quarters to boost up per user revenue.

One concern I do have is the enormous pressure to keep users simultaneously connected while playing multi-player games.  I have noticed several times with play Zynga Poker that users drop off due to temporary network data congestion or suddenly entering a cell phone dead zone.  Thankfully its not real money when playing Zynga Poker so if you get disconnected by your cell phone network or Wi-Fi, you probably won't lose sleep over it.  I think Zynga will have to do a better job of notifying gamers about the quality of their connection on the Wi-Fi, 3G, 4G or LTE network.  Today, users have tolerance for drop outs but this may get old if it does not improve in the future.

The following data below shows a ranking of apps and highlights which apps are owned by Zynga.  8 of the top 40 apps, not just games are owned by Zynga.  Thank you to App Data for providing this information.


1.
59,800,000
2.
  CityVille (Zynga)
48,800,000
3.
41,400,000
4.
  CastleVille (Zynga)   
37,700,000
5.
  FarmVille (Zynga)   
32,100,000
6.
  Texas HoldEm Poker(Zynga)   
28,800,000
7.
27,900,000
8.
  Bing
26,400,000
9.
25,800,000
10.
21,800,000
11.
21,700,000
12.
  Yahoo!
20,000,000
13.
16,800,000
14.
  Empires & Allies (Zynga)
16,200,000
15.
14,500,000
16.
13,700,000
17.
13,500,000
18.
  Scribd
13,300,000
19.
12,400,000
20.
12,300,000
21.
11,800,000
22.
10,900,000
23.
  Spotify
10,800,000
24.
  Yelp
10,800,000
25.
10,600,000
26.
10,500,000
27.
10,400,000
28.
10,100,000
29.
  Skype
10,100,000
30.
9,900,000
31.
9,900,000
32.
9,700,000
33.
  Pandora
9,600,000
34.
9,500,000
35.
  Badoo
9,390,890
36.
  eBuddy
9,200,000
37.
8,900,000
38.
8,800,000
39.
8,600,000
40.
  Yahoo!
8,500,000

0 comments

Subscribe for Email Updates