Zynga updates IPO filing: Revenue up, but growth is slowing

While most folks in tech and finance were focused on Groupon’s much-buzzed-about stock market debut, Zynga on Friday morning issued an update to its S-1 filing for an initial public offering.
The document does not seem to contain any ground-shaking news from the San Francisco-based social gaming company, just more recent financial information. Zynga says it took in $306.8 million in revenue for the third quarter which ended September 30, representing 9.9 percent growth over the previous quarter. The company turned a solid profit during the third quarter, with $12.54 million in net income.
Of course, growth of any kind is always good, but the filing also reveals that Zynga’s growth rate slowed down over a few months. ┬áIn the second quarter of 2011 the company saw 14.9 percent quarter-over-quarter revenue growth; in the quarter before that, the growth rate was 24.1 percent. It makes sense, though, that as revenue gets bigger overall, keeping those growth percentages up is increasingly difficult — and nearly 10 percent quarter-over-quarter growth is certainly nothing to be ashamed of.
Zynga will go public on the Nasdaq stock market under the ticker symbol “ZNGA”. The company expects to raise up to $1 billion in its IPO.