5 Key Numbers From King’s IPO Filing
Yesterday King.com filed their long awaited IPO.
King, the maker of Candy Crush Saga and the rest of the Saga franchise, is one of the biggest players in the freemium games business. Since Candy Crush is consistently #1 in the top grossing mobile games, many in the gaming space have wondered about the numbers behind their business.
Here are five numbers that jumped out to me:
324mm Monthly Active Users (MAUs) and an average of 128mm Daily Active Users (DAUs)
This is pretty astounding. It’s interesting to look back at my analysis of the Zynga IPO filing and compare the numbers. When Zynga filed, they had 236mm MAUs and 62mm DAUs. The big difference here is really the DAU count; King has over double the DAUs Zynga had when it filed. For a more recent comparison, you can also look to Supercell (maker of Clash of Clans and Hay Day) which has 29.4mm DAUs across titles — if we can believe the hacker’s recent numbers.
A DAU/MAU ratio of almost 40%
Crazy. It’s unheard of for most businesses to have this high of a ratio. King’s users are super sticky. That or just plain ole addicted.
(h/t to @shaig for first pointing this out)
12mm Average Monthly Unique Payers
That’s payers, not players. People actually spending money in the games. This represents approximately 4% of their monthly unique users. So overall, a relatively small amount of people are subsidizing King’s games for the rest of us.
Candy Crush makes up 75% of their users and 78% of their revenue
As the late PSH would say as Brandt in The Big Lebowski: "This is our concern, dude."
I wouldn’t quite call King a one-hit wonder, but this is obviously a big concern for them. They need to expand past Candy Crush into other titles. And quickly. They seem to be doing well so far with Pet Rescue Saga (15mm DAUs) and Farm Heroes Saga (8mm DAUs) but I’d like to see more. And they need to figure out how to expand beyond the Saga franchise if they want to continue growing.
The reality is this is a hits based business so for them to last long term as a public company they will need to diversify away from Candy Crush.
They have raised only $9 million of primary capital to date
And they made $1.9 billion in revenue last year. With 665 employees, that’s $2.9 million in revenue per employee. Positive cash flow for the past nine years.
Simply put, a home run for everyone involved.
It will be really interesting to see how the King’s life as a public company plays out. And how it fares against Zynga, Glu Mobile, Kabam’s rumored IPO, and the rest of the public gaming companies.
There are definitely some risk factors here, which King has been very clear of in their filing. But overall, these numbers show just how well they’ve done and how far ahead they are from everyone else.