Revenue from Zynga games contribute 12% of Facebook's bottom line. Facebook said it made $3.71 billion last year, so almost $500 million of that came from Zynga, which includes both users buying virtual goods and services within the games via Facebook Payments as well as "direct advertising" that Zynga bought. Facebook also pointed out that Zynga's worth even more to Facebook than the numbers say, since the users playing games mean more pages get served to those users, and in turn more ads.
In the filing, Facebook pointed out the risk involved in having such an interdependent relationship with Zynga.
"If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected," the document says.
Broadly, Facebook divides its revenue into two buckets:Money made from advertising
Payments and other fees
That second bucket includes the buying of virtual goods and services with Facebook Payments as well revenue from "business development transactions" and mobile providers. Although Facebook doesn't block out those things separately, it says fees from Facebook Payments are by far the largest thing in the second bucket and that the other fees are "immaterial."
In addition, in the Facebook IPO document, the company revealed some details on how advertisers can leverage Facebook's platform beyond just display ads. For example, if you check in on Facebook at your local Starbucks, Starbucks can pay Facebook to increase the prominence of that check-in within your friends' news feeds.
"We generate substantially all of our revenue from advertising and from fees associated with our Payments infrastructure that enables users to purchase virtual and digital goods from our Platform developers."
More details to come as we pore over Facebook's papers.
Additional Facebook IPO Coverage
Facebook Files for $5 Billion IPO
10 Giant Things Less Valuable Than Facebook
Zuckerberg to Potential Shareholders: Facebook Is on a Social Mission