Zynga Q3 Revenue Up 80 Percent To $306.8M; Net Income Down Over 50 Percent To $12.5M

Zynga just filed a new S-1 today in its upcoming IPO, reporting new revenue, income, and usage stats. Revenue came in at $306.8 million for the quarter, which is up 80 percent from Q3 2010. Net income was $12.5 million, down 50 percent from the third quarter 2010 ($27.2 million).

Growth in revenue quarter over quarter also appears to be slowing. Revenue only grew 10 percent from the second quarter, compared to and 15 percent increase from Q1 to Q2.

Daily active users also dropped quarter over quarter to 54 million from 59 million in the second quarter. Average monthly active users dropped to 227 million from 228 million in the second quarter.

Founder Mark Pincus writes in the letter to shareholders that Zynga’s players create and store more than 35,000 virtual items every second and spend 2 billion minutes a day using Zynga’s games. In over four years, the company has generated over $1.5 billion in revenue and over $2.0 billion in bookings.

In the filing, the company said research and development expenses increased in the third quarter due to an increase in headcount-related expenses, which included $5.4 million in stock-based compensation expense related to the acceleration of vesting of stock held by a former employee. As of As of September 30, 2011, Zynga has cash, cash equivalents and marketable securities of $926.3 million.

Zynga now has 2,789 full-time employees.

These results are better, however, than second quarter’s results, when the gaming giant just made a little over $1 million in profit.