Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZNGA | |
Entity Registrant Name | ZYNGA INC | |
Entity Central Index Key | 1,439,404 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 738,160,216 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 113,461,445 | |
Common Class C [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,517,472 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 731,451 | $ 742,217 |
Marketable securities | 126,010 | 245,033 |
Accounts receivable, net of allowance of $0 at March 31, 2016 and December 31, 2015 | 72,393 | 79,610 |
Income tax receivable | 4,638 | 5,233 |
Restricted cash | 2,082 | 209 |
Other current assets | 41,065 | 39,988 |
Total current assets | 977,639 | 1,112,290 |
Goodwill | 652,436 | 657,671 |
Other intangible assets, net | 58,406 | 64,016 |
Property and equipment, net | 271,590 | 273,221 |
Restricted cash | 250 | 986 |
Other long-term assets | 17,298 | 16,446 |
Total assets | 1,977,619 | 2,124,630 |
Current liabilities: | ||
Accounts payable | 13,398 | 29,676 |
Other current liabilities | 61,107 | 77,691 |
Deferred revenue | 123,920 | 128,839 |
Total current liabilities | 198,425 | 236,206 |
Deferred revenue | 27 | 204 |
Deferred tax liabilities | 6,461 | 6,026 |
Other non-current liabilities | 95,928 | 95,293 |
Total liabilities | 300,841 | 337,729 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid in capital - authorized shares: 2,020,517 shares outstanding: 872,192 shares (Class A, 738,213, Class B, 113,462 Class C, 20,517) as of March 31, 2016 and 903,617 (Class A, 769,533, Class B, 113,567, Class C, 20,517) as of December 31, 2015 | 3,270,310 | 3,234,551 |
Treasury stock | (102,130) | (98,942) |
Accumulated other comprehensive income (loss) | (69,581) | (52,388) |
Accumulated deficit | (1,421,821) | (1,296,320) |
Total stockholders’ equity | 1,676,778 | 1,786,901 |
Total liabilities and stockholders’ equity | $ 1,977,619 | $ 2,124,630 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,517,000 | 2,020,517,000 |
Common stock, shares outstanding | 872,192,000 | 903,617,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 738,213,000 | 769,533,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 113,462,000 | 113,567,000 |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517,000 | 20,517,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Online game | $ 137,057 | $ 147,963 |
Advertising and other | 49,664 | 35,330 |
Total revenue | 186,721 | 183,293 |
Costs and expenses: | ||
Cost of revenue | 57,139 | 57,622 |
Research and development | 87,737 | 107,520 |
Sales and marketing | 46,344 | 31,839 |
General and administrative | 22,384 | 40,381 |
Total costs and expenses | 213,604 | 237,362 |
Income (loss) from operations | (26,883) | (54,069) |
Interest income | 705 | 794 |
Other income (expense), net | 2,100 | 8,359 |
Income (loss) before income taxes | (24,078) | (44,916) |
Provision for (benefit from) income taxes | 2,480 | 1,580 |
Net income (loss) | $ (26,558) | $ (46,496) |
Net income (loss) per share attributable to common stockholders: | ||
Basic | $ (0.03) | $ (0.05) |
Diluted | $ (0.03) | $ (0.05) |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | ||
Basic | 871,093 | 898,344 |
Diluted | 871,093 | 898,344 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Partners Capital [Abstract] | ||
Net income (loss) | $ (26,558) | $ (46,496) |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | (17,329) | (22,613) |
Net change on unrealized gains (losses) on available-for-sale investments, net of tax | 136 | 438 |
Other comprehensive income (loss): | (17,193) | (22,175) |
Comprehensive income (loss): | $ (43,751) | $ (68,671) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income (loss) | $ (26,558) | $ (46,496) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,812 | 17,722 |
Stock-based expense | 29,608 | 41,462 |
(Gain) loss from sales of investments, assets and other, net | 11 | (6,056) |
Accretion and amortization on marketable securities | 259 | 2,087 |
Deferred income taxes | 1,422 | 998 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 7,217 | 10,090 |
Income tax receivable | 595 | (1,198) |
Other assets | (1,812) | (7,687) |
Accounts payable | (12,818) | 1,063 |
Deferred revenue | (5,096) | (15,883) |
Other liabilities | (6,945) | (43,104) |
Net cash provided by (used in) operating activities | (3,305) | (47,002) |
Investing activities: | ||
Purchases of marketable securities | (101,091) | |
Sales and maturities of marketable securities | 118,900 | 234,555 |
Acquisition of property and equipment | (2,654) | (2,112) |
Business acquisitions, net of cash acquired | (12,500) | |
Proceeds from sale of property and equipment | 398 | |
Proceeds from sale of equity method investment | 10,507 | |
Net cash provided by (used in) investing activities | 104,144 | 141,859 |
Financing activities: | ||
Taxes paid related to net share settlement of equity awards | (919) | (1,008) |
Repurchases of common stock | (112,392) | |
Proceeds from employee stock purchase plan and exercise of stock options | 2,476 | 3,390 |
Acquisition-related contingent consideration payment | (10,790) | |
Net cash provided by (used in) financing activities | (110,835) | (8,408) |
Effect of exchange rate changes on cash and cash equivalents | (770) | (297) |
Net increase (decrease) in cash and cash equivalents | (10,766) | 86,152 |
Cash and cash equivalents, beginning of period | 742,217 | 131,303 |
Cash and cash equivalents, end of period | $ 731,451 | $ 217,455 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies Organization and Description of Business Zynga Inc. (“Zynga,” “we” or “the Company”) develops, markets, and operates social games as live services played over the Internet and on social networking sites and mobile platforms. We generate revenue through the in-game sale of virtual goods and through advertising. Our operations are headquartered in San Francisco, California, and we have several operating locations in the U.S., as well as various international office locations in North America, Asia and Europe. We completed our initial public offering in December 2011 and our Class A common stock is listed on the NASDAQ Global Select Market under the symbol “ZNGA.” Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of us and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of March 31, 2016, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three months ended March 31, 2016 and 2015, the interim consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 and the related footnote disclosures are unaudited. These unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three months ended March 31, 2016 are not necessarily indicative of the results expected for the full fiscal year or any other future period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives of virtual goods that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, accounting for business combinations, stock-based expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. Changes in our estimated average life of durable virtual goods during the three months ended March 31, 2016 for various games resulted in an increase in revenue and income from operations of $2.6 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. We also recognized $1.3 million of revenue and income from continuing operations in the three months ended March 31, 2016 due to changes in our estimated average life of durable virtual goods for games that have been discontinued as there is no further service obligation after the closure of these games. These changes in estimates resulted in a $0.01 per share impact on our reported earnings per share for the three months ended March 31, 2016. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606), Revenue Recognition (Topic 605) . Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), In September 2015, the FASB issued ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842), In March 2016, the FASB issued ASU 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 2. Marketable Securities The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investments in marketable securities (in thousands): March 31, 2016 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 68,006 $ 9 $ (1 ) $ 68,014 Corporate debt securities 57,994 6 (4 ) 57,996 Total $ 126,000 $ 15 $ (5 ) $ 126,010 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 145,066 $ — $ (80 ) $ 144,986 Corporate debt securities 100,093 12 (58 ) 100,047 Total $ 245,159 $ 12 $ (138 ) $ 245,033 For more detail on our method for determining the fair value of our assets, see Note 3 – “Fair Value Measurements”. The estimated fair value of available-for-sale marketable securities, classified by their contractual maturities was as follows (in thousands): March 31, 2016 Due within one year $ 126,010 After one year through three years — Total $ 126,010 Changes in market interest rates and bond yields caused certain investments to fall below their cost basis, resulting in unrealized losses on marketable securities. As of March 31, 2016, we had unrealized losses of $5 thousand related to marketable securities that had a fair value of $29.8 million. As of December 31, 2015, we had unrealized losses of $0.1 million related to marketable securities that had a fair value of $199.1 million. None of these securities were in a material continuous unrealized loss position for more than 12 months. As of March 31, 2016 and December 31, 2015, we did not consider any of our marketable securities to be other-than-temporarily impaired. When evaluating our investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer, our ability and intent to hold the security to maturity and whether it is more likely than not that we will be required to sell the investment before recovery of its cost basis. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Our financial instruments consist of cash equivalents, short-term marketable securities and accounts receivable. Accounts receivable, net is stated at its carrying value, which approximates fair value. Cash equivalents and short-term marketable securities, consisting of money market funds, U.S. government and government agency debt securities and corporate debt securities, are carried at fair value, which is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. Our contingent consideration liability represents the estimated fair value of the additional consideration payable in connection with our acquisitions of Rising Tide Games, Inc. (“Rising Tide Games”) and Zindagi Games, Inc. (“Zindagi Games”). The amount payable is contingent upon the achievement of certain performance milestones. We estimated the acquisition date fair value of the contingent consideration payable using discounted cash flow models, and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the obligations. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration payable were forecasted future cash flows and the timing of those cash flows and the risk-adjusted discount rate. Significant changes in actual and forecasted future cash flows may result in significant charges or benefits to our future operating expenses. In the third quarter of 2015, we acquired Rising Tide Games. Under the terms of the agreement, the contingent consideration may be payable based on the achievement of certain future performance targets during the three year period following the acquisition date. We initially estimated the acquisition date fair value of the contingent consideration payable using discounted cash flow models, and applied a risk-adjusted discount rate that appropriately captured a market participant’s view of the risk associated with the obligations. In the first quarter of 2016, we updated this analysis and recorded the change in estimated fair value of the contingent consideration liability as an expense of approximately $2.0 million within Research and Development in our consolidated statement of operations. The current contingent consideration liability is $20.5 million; however, the maximum contingent consideration that could be earned and payable by us is $140.0 million. In the first quarter of 2016, we acquired Zindagi Games. Under the terms of the agreement, the contingent consideration may be payable based on the achievement of certain future performance targets during the three year period following the acquisition date. The current contingent consideration liability is $1.3 million, however, the maximum contingent consideration that could be earned and payable by us is $60.0 million. Fair value is a market-based measurement that should be determined based on assumptions that knowledgeable and willing market participants would use in pricing an asset or liability. The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. We use a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Includes inputs, other than Level 1 inputs, that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. The composition of our financial assets and liabilities among the three Levels of the fair value hierarchy are as follows (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 533,675 $ — $ — $ 533,675 U.S. government and government agency debt securities — 68,014 — 68,014 Corporate debt securities (1) — 124,956 — 124,956 Total $ 533,675 $ 192,970 $ — $ 726,645 Liabilities: Contingent consideration $ — $ — $ 21,780 $ 21,780 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 362,587 $ — $ — $ 362,587 U.S. government and government agency debt securities — 184,975 — 184,975 Corporate debt securities (1) — 277,193 — 277,193 Total $ 362,587 $ 462,168 $ — $ 824,755 Liabilities: Contingent consideration $ — $ — $ 18,490 $ 18,490 (1) Includes amounts classified as cash and cash equivalents. The following table presents the activity for the three months ended March 31, 2016 related to our Level 3 liabilities: Level 3 Liabilities: Rising Tide Games Zindagi Games Total Contingent consideration – December 31, 2015 $ 18,490 $ — $ 18,490 Additions — 1,260 1,260 Fair value adjustments 2,030 — 2,030 Contingent consideration – March 31, 2016 $ 20,520 $ 1,260 $ 21,780 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following (in thousands): March 31, December 31, 2016 2015 Computer equipment $ 36,851 $ 36,373 Software 31,588 30,950 Land 89,130 89,130 Building 195,751 195,372 Furniture and fixtures 10,361 10,348 Leasehold improvements 7,670 7,748 $ 371,351 $ 369,921 Less accumulated depreciation (99,761 ) (96,700 ) Total property and equipment, net $ 271,590 $ 273,221 During the fourth quarter of 2015, we completed the exit of one of our data centers in Santa Clara, and initiated the sale of certain computer data center equipment, resulting in the assets meeting held for sale criteria. Accordingly, these assets were written down to their fair value and reclassified from property and equipment to other current assets, with $83.9 million and $80.7 million being reclassified from computer equipment and accumulated depreciation respectively, for a net amount of $3.2 million. The $3.2 million reflects the fair value of the assets less estimated costs to sell. During the first quarter of 2016, $0.4 million of the assets meeting held for sale criteria were sold. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions On January 1, 2016, we acquired Zindagi Games, a provider of social games, for purchase consideration of approximately $13.8 million, which consisted of cash paid of $12.5 million (net of prepaid compensation expense of $2.5 million) and contingent consideration with a fair value of $1.3 million. The contingent consideration may be payable based on the achievement of certain future performance targets during the three year period following the acquisition date and could be up to $60.0 million. We will record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations each future reporting period. For further details on our fair value methodology with respect to contingent consideration liabilities, see Note 3 – “Fair Value Measurements”. The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from Zindagi Games (in thousands, unaudited): Total Developed technology, useful life of 3 years $ 3,257 Goodwill 10,503 Total $ 13,760 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Changes in the carrying value of goodwill from December 31, 2015 to March 31, 2016 are as follows (in thousands): Goodwill – December 31, 2015 $ 657,671 Additions 10,503 Foreign currency translation adjustments (1) (15,738 ) Goodwill – March 31, 2016 $ 652,436 (1) The decrease is related to translation losses on goodwill associated with the acquisition of NaturalMotion denominated in British Pounds. The details of our acquisition-related intangible assets as of March 31, 2016 are as follows (in thousands): March 31, 2016 Gross Value Accumulated Amortization Net Book Developed technology $ 175,549 $ (124,742 ) $ 50,807 Trademarks, branding and domain names 16,290 (9,483 ) 6,807 Acquired lease intangibles 5,708 (4,916 ) 792 Total $ 197,547 $ (139,141 ) $ 58,406 The details of our acquisition-related intangible assets as of December 31, 2015 are as follows (in thousands): December 31, 2015 Gross Accumulated Amortization Net Book Developed technology $ 174,970 $ (118,940 ) $ 56,030 Trademarks, branding and domain names 16,290 (9,210 ) 7,080 Acquired lease intangibles 5,708 (4,802 ) 906 Total $ 196,968 $ (132,952 ) $ 64,016 These assets were, and continue to be, amortized on a straight-line basis. As of March 31, 2016, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2016 $ 21,616 2017 12,071 2018 8,638 2019 and thereafter 9,962 Total $ 52,287 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The expense from income taxes increased by $0.9 million in the three months ended March 31, 2016 as compared to the same period of the prior year. This increase was primarily attributable to an increase in foreign tax expense of $0.9 million related to a change in our jurisdictional mix of earnings and uncertain tax positions. Once the Company is profitable, we expect our global effective tax rate to be less than the U.S. statutory income tax rate. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 8. Other Current Liabilities Other current liabilities consist of the following (in thousands): March 31, December 31, 2016 2015 Accrued accounts payable $ 21,315 $ 31,700 Accrued compensation liability 11,458 16,278 Accrued restructuring liability 9,167 9,859 Other current liabilities 19,167 19,854 Total other current liabilities $ 61,107 $ 77,691 Accrued compensation liability represents employee bonus and other payroll withholding expenses. Accrued restructuring liability represents amounts payable related to our restructuring plans. Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and accrued vendor expenses. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 9. Restructuring During the three months ended March 31, 2016, we recorded total restructuring charges of $0.5 million which were classified within our consolidated statement of operations as follows: Research and Development $0.1 million and General and Administrative $0.4 million. Q2 2015 Restructuring Plan During the three months ended June 30, 2015, our board of directors authorized, and we implemented a restructuring plan that included a reduction in work force as part of the overall plan to reduce the Company’s long term cost structure. As a result of ongoing initiatives associated with restructuring, we recorded a charge of $0.5 million in three months ended March 31, 2016, which is included in operating expenses in our consolidated statement of operations and comprised of lease and contract termination costs. The remaining liability related to our Q2 2015 restructuring plan as of March 31, 2016 was $25.1 million and is expected to be paid out over the next 6.2 years. The following table presents the activity for the three months ended March 31, 2016 related to the Q2 2015 restructuring plan (in thousands): Three March 31, 2016 Restructuring liability - beginning of period $ 26,406 Restructuring expense and adjustments 456 Cash payments (1,773 ) Restructuring liability (Q2 2015 Plan) - end of period $ 25,089 Q1 2014 Restructuring Plan The following table presents the activity for the three months ended March 31, 2016 related to the Q1 2014 restructuring plan (in thousands): Three Months March 31, 2016 Restructuring liability - beginning of period $ 2,290 Restructuring expense and adjustments 16 Cash payments (781 ) Restructuring liability (Q1 2014 Plan) - end of period $ 1,525 The remaining liability of $1.5 million is expected to be paid out in 2016. Other Plans The following table presents the activity for the three months ended March 31, 2016 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months March 31, 2016 Restructuring liability - beginning of period $ 332 Restructuring expense and adjustments (10 ) Cash payments (404 ) Restructuring liability (2013 Plan) - end of period $ (82 ) (1) The remaining liability of $0.1 million, offset by sublease income receivable of $0.2 million, is expected to be paid out over the next 1.6 years. The sublease income is expected to be received in the second quarter of 2016. (1) The remaining liability is a net receivable due to the timing of sublease income for restructured data center space in Virginia. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of revenue $ 649 $ 1,072 Research and development 24,203 28,317 Sales and marketing 1,991 1,519 General and administrative 2,765 10,554 Total stock-based expense $ 29,608 $ 41,462 The following table shows stock option activity for the three months ended March 31, 2016 (in thousands, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Weighted- Aggregate Weighted- Average Intrinsic Value of Average Exercise Stock Options Contractual Term Stock Price Outstanding (in years) Balance as of December 31, 2015 23,215 $ 1.93 $ 35,949 5.36 Granted 5,000 2.28 Forfeited and cancelled (1,592 ) 2.60 Exercised (1,634 ) 0.18 Balance as of March 31, 2016 24,989 $ 2.07 $ 26,166 5.92 The following table shows a summary of ZSU activity for the three months ended March 31, 2016 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Aggregate Average Grant Date Intrinsic Value of Shares Fair Value Unvested ZSUs Balance as of December 31, 2015 62,436 $ 3.06 $ 167,328 Granted 17,669 1.98 Vested (8,344 ) 2.59 Forfeited and cancelled (4,390 ) 2.80 Unvested as of March 31, 2016 67,371 $ 2.85 $ 153,606 The following table shows a summary of changes in accumulated other comprehensive income by component for the three months ended March 31, 2016 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) Other comprehensive income (loss) before reclassifications (17,329 ) 137 (17,192 ) Amounts reclassified from accumulated other comprehensive income (loss) — (1 ) (1 ) Net current-period other comprehensive income (loss) (17,329 ) 136 (17,193 ) Balance as of March 31, 2016 $ (69,590 ) $ 9 $ (69,581 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 11. Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. In computing diluted net income (loss) attributable to common stockholders, net income (loss) is re-allocated to reflect the potential impact of dilutive securities, including stock options, warrants, unvested restricted stock and unvested ZSUs. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding, including potential dilutive securities. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include stock options, warrants, unvested restricted stock and unvested ZSUs in our computation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. The net per share amounts are the same for Class A, Class B and Class C common stock because the holders of each class are legally entitled to equal per share distributions whether through dividend or distribution. Further, as we assume the conversion of Class B and Class C common shares into Class A common shares for the Class A diluted net income (loss) per share computation, the net income (loss) is equal to total net income (loss) for that computation. The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (22,471 ) $ (3,461 ) $ (626 ) $ (39,525 ) $ (5,909 ) $ (1,062 ) Weighted-average common shares outstanding 737,061 113,515 20,517 763,658 114,169 20,517 Basic net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) DILUTED: Net income (loss) attributable to common stockholders $ (22,471 ) $ (3,461 ) $ (626 ) $ (39,525 ) $ (5,909 ) $ (1,062 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (626 ) — — (1,062 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (3,461 ) — — (5,909 ) — — Net income (loss) attributable to common stockholders-diluted $ (26,558 ) $ (3,461 ) $ (626 ) $ (46,496 ) $ (5,909 ) $ (1,062 ) Weighted-average common shares outstanding-basic 737,061 113,515 20,517 763,658 114,169 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 113,515 — — 114,169 — — Weighted-average common shares outstanding-diluted 871,093 113,515 20,517 898,344 114,169 20,517 Diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) The following weighted-average equity awards were excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2016 2015 Stock options and employee stock purchase plan 22,985 38,798 Restricted shares 5,504 11,129 ZSUs 63,758 68,127 Total 92,247 118,054 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Commitments We have entered into operating leases for facilities. As of March 31, 2016, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2016 $ 3,993 2017 4,300 2018 2,878 2019 2,674 2020 1,480 2021 and thereafter 394 $ 15,719 Other Purchase Commitments We have entered into several contracts for hosting of data systems and licensed intellectual property. Future minimum purchase commitments that have initial or remaining non-cancelable terms as of March 31, 2016, are as follows (in thousands): Year ending December 31: 2016 $ 22,063 2017 15,069 2018 1,070 2019 343 $ 38,545 Credit Facility In June 2013, we amended our existing revolving credit agreement which we originally executed in July 2011, reducing our maximum available credit from $1.0 billion to $200 million, and extending the term through June 2018. Per the terms of our amended agreement, we paid additional up-front fees of $0.3 million to be amortized over the remaining extended term of the loan. The interest rate for the amended credit facility is determined based on a formula using certain market rates, as described in the amended credit agreement. Additionally, our minimum quarterly commitment fee was reduced from $0.6 million per quarter to $0.1 million per quarter based on the portion of the credit facility that is not drawn down. The agreement requires us to comply with certain covenants, including maintaining a minimum capitalization ratio, and maintaining a minimum cash balance. As of March 31, 2016, we had not drawn down any amounts under the credit facility and were in compliance with these covenants. Legal Matters On July 30, 2012, a purported securities class action captioned DeStefano v. Zynga Inc. et al In re Zynga Inc. Securities Litigation The lead plaintiff filed a First Amended Complaint on March 31, 2014. The First Amended Complaint alleges that the defendants violated the federal securities laws by issuing false or misleading statements regarding the Company’s business and financial projections. The plaintiffs seek to represent a class of persons who purchased or otherwise acquired the Company’s securities between February 14, 2012 and July 25, 2012. The First Amended Complaint asserts claims for unspecified damages, and an award of costs and expenses to the putative class, including attorneys’ fees. On March 25, 2015, the Court issued an order denying the defendants’ motion to dismiss the First Amended Complaint. On April 28, 2015, the Court denied the defendants’ motion for leave to seek reconsideration of that order. On June 12, 2015, the Court entered a scheduling order setting certain pretrial deadlines leading up to a hearing on any dispositive motions scheduled for May 12, 2017. On June 24, 2015, pursuant to a stipulation among the parties, the consolidated class actions were reassigned to Magistrate Judge Jacqueline Scott Corley for all further proceedings. Pursuant to court order, a mediation session was conducted before the Honorable Edward Infante (Ret.) on August 4, 2015. The parties reached an agreement in principle to settle In re Zynga Inc. Securities Litigation In addition, a purported securities class action captioned Reyes v. Zynga Inc., et al On April 4, 2013, a purported class action captioned Lee v. Pincus, et al On June 24, 2015, certain of the defendants filed a motion for relief from the court’s November 14, 2014 decision denying the defendants’ motion to dismiss the complaint. Briefing on the motion for relief from the court’s November 14, 2014 decision is complete. A hearing date has not been set. On August 19, 2015 the parties agreed to voluntarily dismiss three individual director defendants from the case. Plaintiff filed a motion for class certification on July 13, 2015, and, after briefing was completed, the court held a hearing on plaintiff’s motion on November 20, 2015. On December 30, 2015, the court granted plaintiff’s motion for class certification. The court has not yet entered a schedule for further proceedings in this action. Although it is reasonably possible that our assessment of the possibility of loss could change in the near term due to one or more confirming events, the Company believes it has meritorious defenses in the Lee v. Pincus Since August 3, 2012, nine stockholder derivative lawsuits have been filed in State or Federal courts in California and Delaware purportedly on behalf of the Company against certain current and former directors and executive officers of the Company. The derivative plaintiffs allege that the defendants breached their fiduciary duties and violated California Corporations Code section 25402 in connection with our initial public offering in December 2011, secondary offering in April 2012, and allegedly made false or misleading statements regarding the Company’s business and financial projections. Beginning on August 3, 2012, three of the actions were filed in San Francisco County Superior Court. On October 2, 2012, the court consolidated those three actions as In re Zynga Shareholder Derivative Litigation Beginning on August 16, 2012, four stockholder derivative actions were filed in the United States District Court for the Northern District of California. On December 3, 2012, the court consolidated these four actions as In re Zynga Inc. Derivative Litigation On April 4, 2014, a derivative action was filed in the Court of Chancery of the State of Delaware captioned Sandys v. Pincus, et al. The derivative actions include claims for, among other things, unspecified damages in favor of the Company, certain corporate actions to purportedly improve the Company’s corporate governance, and an award of costs and expenses to the derivative plaintiffs, including attorneys’ fees. We believe that the plaintiffs in the derivative actions lack standing to pursue litigation on behalf of Zynga. Because the derivative actions are in the early stages of the litigation process, we are not in a position to assess whether any loss or adverse effect on our financial condition is probable or remote or to estimate the range of potential loss, if any. The Company is, at various times, also party to various other legal proceedings and claims which arise in the ordinary course of business. In addition, we may receive notifications alleging infringement of patent or other intellectual property rights. Adverse results in any such litigation, legal proceedings or claims may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain games, features, or services, and may also result in changes in our business practices, which could result in additional costs or a loss of revenue for us and could otherwise harm our business. Although the results of such litigation cannot be predicted with certainty, we believe that the amount or range of reasonably possible losses related to such pending or threatened litigation will not have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. We recognize legal expenses as incurred. |
Geographical Information
Geographical Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographical Information | 13. Geographical Information The following represents our revenue based on the geographic location of our players (in thousands): Revenue Three Months Ended March 31, 2016 2015 United States $ 125,636 $ 117,540 All other countries (1) 61,085 65,753 Total revenue $ 186,721 $ 183,293 (1) No country exceeded 10% of our total revenue for any periods presented. The following represents our property and equipment, net by location (in thousands): Property and equipment, net March 31, December 31, 2016 2015 United States $ 268,613 $ 269,721 All other countries 2,977 3,500 Total property and equipment, net $ 271,590 $ 273,221 |
Overview and Summary of Signi20
Overview and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of us and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of March 31, 2016, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three months ended March 31, 2016 and 2015, the interim consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 and the related footnote disclosures are unaudited. These unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three months ended March 31, 2016 are not necessarily indicative of the results expected for the full fiscal year or any other future period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives of virtual goods that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, accounting for business combinations, stock-based expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. Changes in our estimated average life of durable virtual goods during the three months ended March 31, 2016 for various games resulted in an increase in revenue and income from operations of $2.6 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. We also recognized $1.3 million of revenue and income from continuing operations in the three months ended March 31, 2016 due to changes in our estimated average life of durable virtual goods for games that have been discontinued as there is no further service obligation after the closure of these games. These changes in estimates resulted in a $0.01 per share impact on our reported earnings per share for the three months ended March 31, 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606), Revenue Recognition (Topic 605) . Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), In September 2015, the FASB issued ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842), In March 2016, the FASB issued ASU 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-Sale Investments | The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investments in marketable securities (in thousands): March 31, 2016 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 68,006 $ 9 $ (1 ) $ 68,014 Corporate debt securities 57,994 6 (4 ) 57,996 Total $ 126,000 $ 15 $ (5 ) $ 126,010 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 145,066 $ — $ (80 ) $ 144,986 Corporate debt securities 100,093 12 (58 ) 100,047 Total $ 245,159 $ 12 $ (138 ) $ 245,033 |
Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities | The estimated fair value of available-for-sale marketable securities, classified by their contractual maturities was as follows (in thousands): March 31, 2016 Due within one year $ 126,010 After one year through three years — Total $ 126,010 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets Measured on Recurring Basis | The composition of our financial assets and liabilities among the three Levels of the fair value hierarchy are as follows (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 533,675 $ — $ — $ 533,675 U.S. government and government agency debt securities — 68,014 — 68,014 Corporate debt securities (1) — 124,956 — 124,956 Total $ 533,675 $ 192,970 $ — $ 726,645 Liabilities: Contingent consideration $ — $ — $ 21,780 $ 21,780 December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 362,587 $ — $ — $ 362,587 U.S. government and government agency debt securities — 184,975 — 184,975 Corporate debt securities (1) — 277,193 — 277,193 Total $ 362,587 $ 462,168 $ — $ 824,755 Liabilities: Contingent consideration $ — $ — $ 18,490 $ 18,490 (1) Includes amounts classified as cash and cash equivalents. |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the three months ended March 31, 2016 related to our Level 3 liabilities: Level 3 Liabilities: Rising Tide Games Zindagi Games Total Contingent consideration – December 31, 2015 $ 18,490 $ — $ 18,490 Additions — 1,260 1,260 Fair value adjustments 2,030 — 2,030 Contingent consideration – March 31, 2016 $ 20,520 $ 1,260 $ 21,780 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): March 31, December 31, 2016 2015 Computer equipment $ 36,851 $ 36,373 Software 31,588 30,950 Land 89,130 89,130 Building 195,751 195,372 Furniture and fixtures 10,361 10,348 Leasehold improvements 7,670 7,748 $ 371,351 $ 369,921 Less accumulated depreciation (99,761 ) (96,700 ) Total property and equipment, net $ 271,590 $ 273,221 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Zindagi Games [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from Zindagi Games (in thousands, unaudited): Total Developed technology, useful life of 3 years $ 3,257 Goodwill 10,503 Total $ 13,760 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill from December 31, 2015 to March 31, 2016 are as follows (in thousands): Goodwill – December 31, 2015 $ 657,671 Additions 10,503 Foreign currency translation adjustments (1) (15,738 ) Goodwill – March 31, 2016 $ 652,436 (1) The decrease is related to translation losses on goodwill associated with the acquisition of NaturalMotion denominated in British Pounds. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of March 31, 2016 are as follows (in thousands): March 31, 2016 Gross Value Accumulated Amortization Net Book Developed technology $ 175,549 $ (124,742 ) $ 50,807 Trademarks, branding and domain names 16,290 (9,483 ) 6,807 Acquired lease intangibles 5,708 (4,916 ) 792 Total $ 197,547 $ (139,141 ) $ 58,406 The details of our acquisition-related intangible assets as of December 31, 2015 are as follows (in thousands): December 31, 2015 Gross Accumulated Amortization Net Book Developed technology $ 174,970 $ (118,940 ) $ 56,030 Trademarks, branding and domain names 16,290 (9,210 ) 7,080 Acquired lease intangibles 5,708 (4,802 ) 906 Total $ 196,968 $ (132,952 ) $ 64,016 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of March 31, 2016, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2016 $ 21,616 2017 12,071 2018 8,638 2019 and thereafter 9,962 Total $ 52,287 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): March 31, December 31, 2016 2015 Accrued accounts payable $ 21,315 $ 31,700 Accrued compensation liability 11,458 16,278 Accrued restructuring liability 9,167 9,859 Other current liabilities 19,167 19,854 Total other current liabilities $ 61,107 $ 77,691 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Summary of Historical Restructuring Liability | The following table presents the activity for the three months ended March 31, 2016 related to the Q2 2015 restructuring plan (in thousands): Three March 31, 2016 Restructuring liability - beginning of period $ 26,406 Restructuring expense and adjustments 456 Cash payments (1,773 ) Restructuring liability (Q2 2015 Plan) - end of period $ 25,089 The following table presents the activity for the three months ended March 31, 2016 related to the Q1 2014 restructuring plan (in thousands): Three Months March 31, 2016 Restructuring liability - beginning of period $ 2,290 Restructuring expense and adjustments 16 Cash payments (781 ) Restructuring liability (Q1 2014 Plan) - end of period $ 1,525 The following table presents the activity for the three months ended March 31, 2016 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months March 31, 2016 Restructuring liability - beginning of period $ 332 Restructuring expense and adjustments (10 ) Cash payments (404 ) Restructuring liability (2013 Plan) - end of period $ (82 ) (1) (1) The remaining liability is a net receivable due to the timing of sublease income for restructured data center space in Virginia. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) | We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of revenue $ 649 $ 1,072 Research and development 24,203 28,317 Sales and marketing 1,991 1,519 General and administrative 2,765 10,554 Total stock-based expense $ 29,608 $ 41,462 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the three months ended March 31, 2016 (in thousands, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Weighted- Aggregate Weighted- Average Intrinsic Value of Average Exercise Stock Options Contractual Term Stock Price Outstanding (in years) Balance as of December 31, 2015 23,215 $ 1.93 $ 35,949 5.36 Granted 5,000 2.28 Forfeited and cancelled (1,592 ) 2.60 Exercised (1,634 ) 0.18 Balance as of March 31, 2016 24,989 $ 2.07 $ 26,166 5.92 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the three months ended March 31, 2016 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Aggregate Average Grant Date Intrinsic Value of Shares Fair Value Unvested ZSUs Balance as of December 31, 2015 62,436 $ 3.06 $ 167,328 Granted 17,669 1.98 Vested (8,344 ) 2.59 Forfeited and cancelled (4,390 ) 2.80 Unvested as of March 31, 2016 67,371 $ 2.85 $ 153,606 |
Schedule of Accumulated Other Comprehensive Income Loss | The following table shows a summary of changes in accumulated other comprehensive income by component for the three months ended March 31, 2016 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) Other comprehensive income (loss) before reclassifications (17,329 ) 137 (17,192 ) Amounts reclassified from accumulated other comprehensive income (loss) — (1 ) (1 ) Net current-period other comprehensive income (loss) (17,329 ) 136 (17,193 ) Balance as of March 31, 2016 $ (69,590 ) $ 9 $ (69,581 ) |
Net Income (Loss) Per Share o29
Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (22,471 ) $ (3,461 ) $ (626 ) $ (39,525 ) $ (5,909 ) $ (1,062 ) Weighted-average common shares outstanding 737,061 113,515 20,517 763,658 114,169 20,517 Basic net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) DILUTED: Net income (loss) attributable to common stockholders $ (22,471 ) $ (3,461 ) $ (626 ) $ (39,525 ) $ (5,909 ) $ (1,062 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (626 ) — — (1,062 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (3,461 ) — — (5,909 ) — — Net income (loss) attributable to common stockholders-diluted $ (26,558 ) $ (3,461 ) $ (626 ) $ (46,496 ) $ (5,909 ) $ (1,062 ) Weighted-average common shares outstanding-basic 737,061 113,515 20,517 763,658 114,169 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 113,515 — — 114,169 — — Weighted-average common shares outstanding-diluted 871,093 113,515 20,517 898,344 114,169 20,517 Diluted net income (loss) per share $ (0.03 ) $ (0.03 ) $ (0.03 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) |
Weighted Average Employee Equity Awards | The following weighted-average equity awards were excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2016 2015 Stock options and employee stock purchase plan 22,985 38,798 Restricted shares 5,504 11,129 ZSUs 63,758 68,127 Total 92,247 118,054 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | We have entered into operating leases for facilities. As of March 31, 2016, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2016 $ 3,993 2017 4,300 2018 2,878 2019 2,674 2020 1,480 2021 and thereafter 394 $ 15,719 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts for hosting of data systems and licensed intellectual property. Future minimum purchase commitments that have initial or remaining non-cancelable terms as of March 31, 2016, are as follows (in thousands): Year ending December 31: 2016 $ 22,063 2017 15,069 2018 1,070 2019 343 $ 38,545 |
Geographical Information (Table
Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue by Geographical Area | The following represents our revenue based on the geographic location of our players (in thousands): Revenue Three Months Ended March 31, 2016 2015 United States $ 125,636 $ 117,540 All other countries (1) 61,085 65,753 Total revenue $ 186,721 $ 183,293 (1) No country exceeded 10% of our total revenue for any periods presented. The following represents our property and equipment, net by location (in thousands): |
Property and Equipment, Net | Property and equipment, net March 31, December 31, 2016 2015 United States $ 268,613 $ 269,721 All other countries 2,977 3,500 Total property and equipment, net $ 271,590 $ 273,221 |
Overview and Summary of Signi32
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Accounting Policies [Abstract] | |
Initial offering period | December 2,011 |
Increase in revenue and income from operations | $ 2.6 |
Impact on reported earnings per share | $ / shares | $ 0.01 |
Revenue and income from continuing operations | $ 1.3 |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 126,000 | $ 245,159 |
Gross Unrealized Gains | 15 | 12 |
Gross Unrealized Losses | (5) | (138) |
Aggregate Fair Value | 126,010 | 245,033 |
U.S. Government and Government Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 68,006 | 145,066 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (1) | (80) |
Aggregate Fair Value | 68,014 | 144,986 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 57,994 | 100,093 |
Gross Unrealized Gains | 6 | 12 |
Gross Unrealized Losses | (4) | (58) |
Aggregate Fair Value | $ 57,996 | $ 100,047 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Marketable Securities [Abstract] | ||
Due within one year | $ 126,010 | $ 245,033 |
Aggregate Fair Value | $ 126,010 | $ 245,033 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities [Abstract] | ||
Unrealized losses | $ (5,000) | $ (100,000) |
Fair value | 29,800,000 | 199,100,000 |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Rising Tide Games [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maximum amount payable | $ 140 | |
Contingent consideration liability | 20.5 | |
Potential future payments maximum period | 3 years | |
Rising Tide Games [Member] | Research and Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in fair value of contingent consideration liability | 2 | |
Zindagi Games [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maximum amount payable | 60 | |
Contingent consideration liability | $ 1.3 | |
Potential future payments maximum period | 3 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 726,645 | $ 824,755 |
U.S. Government and Government Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 68,014 | 184,975 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 124,956 | 277,193 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 533,675 | 362,587 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 533,675 | 362,587 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 533,675 | 362,587 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 192,970 | 462,168 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government and Government Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 68,014 | 184,975 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 124,956 | 277,193 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 21,780 | 18,490 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 21,780 | 18,490 |
Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | $ 21,780 | $ 18,490 |
Fair Value Measurements - Fai38
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration, Begining Balance | $ 18,490 |
Additions | 1,260 |
Fair value adjustments | 2,030 |
Contingent consideration, Ending Balance | 21,780 |
Rising Tide Games [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration, Begining Balance | 18,490 |
Fair value adjustments | 2,030 |
Contingent consideration, Ending Balance | 20,520 |
Zindagi Games [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Additions | 1,260 |
Contingent consideration, Ending Balance | $ 1,260 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 371,351 | $ 369,921 |
Less accumulated depreciation | (99,761) | (96,700) |
Total property and equipment, net | 271,590 | 273,221 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 36,851 | 36,373 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 89,130 | 89,130 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 195,751 | 195,372 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,361 | 10,348 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,670 | 7,748 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31,588 | $ 30,950 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ 99,761 | $ 96,700 |
Proceeds from sale of property and equipment | 398 | |
Asset Held for Sale [Member] | Computer Equipment [Member] | Other Current Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 83,900 | |
Accumulated depreciation | $ 80,700 | |
Impairment of assets held for sale | 3,200 | |
Proceeds from sale of property and equipment | $ 400 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Zindagi Games [Member] - USD ($) $ in Millions | Jan. 02, 2016 | Mar. 31, 2016 | Jan. 01, 2016 |
Business Acquisition [Line Items] | |||
Business acquisition, cost of acquired entity | $ 13.8 | ||
Business acquisition, cost of acquired entity, cash paid | 12.5 | ||
Business acquisition, prepaid compensation expense | $ 2.5 | ||
Business acquisition, cost of acquired entity, fair value of contingent consideration | $ 1.3 | ||
Business acquisition effective date of acquisition | Jan. 1, 2016 | ||
Potential future payments maximum period | 3 years | ||
Potential future payments | $ 60 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Estimated Fair Value, Goodwill | $ 652,436 | $ 657,671 | |
Zindagi Games [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value, Goodwill | $ 10,503 | ||
Estimated Fair Value, Total | 13,760 | ||
Developed Technology [Member] | Zindagi Games [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value, Intangible assets | $ 3,257 |
Acquisitions - Schedule of Pu43
Acquisitions - Schedule of Purchase Price Allocation (Parenthetical) (Detail) | Jan. 02, 2016 |
Zindagi Games [Member] | Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 3 years |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill Roll Forward | |
Goodwill, beginning balance | $ 657,671 |
Additions | 10,503 |
Foreign currency translation adjustments | (15,738) |
Goodwill, ending balance | $ 652,436 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 197,547 | $ 196,968 |
Accumulated Amortization | (139,141) | (132,952) |
Net Book Value | 58,406 | 64,016 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 175,549 | 174,970 |
Accumulated Amortization | (124,742) | (118,940) |
Net Book Value | 50,807 | 56,030 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,290 | 16,290 |
Accumulated Amortization | (9,483) | (9,210) |
Net Book Value | 6,807 | 7,080 |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (4,916) | (4,802) |
Net Book Value | $ 792 | $ 906 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
2,016 | $ 21,616 |
2,017 | 12,071 |
2,018 | 8,638 |
2019 and thereafter | 9,962 |
Total | $ 52,287 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase in income tax expense benefit | $ 0.9 |
Increase in foreign tax expense related to change in our jurisdictional mix of earnings and uncertain tax positions | $ 0.9 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued accounts payable | $ 21,315 | $ 31,700 |
Accrued compensation liability | 11,458 | 16,278 |
Accrued restructuring liability | 9,167 | 9,859 |
Other current liabilities | 19,167 | 19,854 |
Total other current liabilities | $ 61,107 | $ 77,691 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | $ 500 | |
Q2 2015 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | 500 | |
Restructuring liability | $ 25,089 | $ 26,406 |
Restructuring liability, expected paid out period | 6 years 2 months 12 days | |
Q1 2014 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ 1,525 | 2,290 |
Other Restructuring Plans [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $ (82) | $ 332 |
Restructuring liability, expected paid out period | 1 year 7 months 6 days | |
Sublease income receivable | $ 200 | |
Expected period of sublease income receivable | Jun. 30, 2016 | |
Research and Development [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | $ 100 | |
General and Administrative [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | $ 400 |
Restructuring - Summary of Hist
Restructuring - Summary of Historical Restructuring Liability (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Q2 2015 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | $ 26,406 |
Restructuring expense and adjustments | 456 |
Cash payments | (1,773) |
Restructuring liability, Ending balance | 25,089 |
Q1 2014 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | 2,290 |
Restructuring expense and adjustments | 16 |
Cash payments | (781) |
Restructuring liability, Ending balance | 1,525 |
Other Restructuring Plans [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | 332 |
Restructuring expense and adjustments | (10) |
Cash payments | (404) |
Restructuring liability, Ending balance | $ (82) |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | $ 29,608 | $ 41,462 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 649 | 1,072 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 24,203 | 28,317 |
Sales and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 1,991 | 1,519 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | $ 2,765 | $ 10,554 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 23,215 | |
Stock Options, Granted | 5,000 | |
Stock Options, Forfeited and cancelled | (1,592) | |
Stock Options, Exercised | (1,634) | |
Stock Options Outstanding, Ending balance | 24,989 | 23,215 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 1.93 | |
Weighted Average Exercise Price, Granted | 2.28 | |
Weighted Average Exercise Price, Forfeited and cancelled | 2.60 | |
Weighted Average Exercise Price, Exercised | 0.18 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 2.07 | $ 1.93 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 26,166 | $ 35,949 |
Weighted Average Contractual Term (in years) | 5 years 11 months 1 day | 5 years 4 months 10 days |
Stockholders' Equity - Schedu53
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (ZSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested Outstanding Shares, Beginning balance | 62,436 | |
Nonvested Shares, Granted | 17,669 | |
Nonvested Shares, Vested | (8,344) | |
Nonvested Shares, Forfeited and cancelled | (4,390) | |
Nonvested Outstanding Shares, Ending balance | 67,371 | |
Weighted Average Grant Date Fair Value, Beginning balance | $ 3.06 | |
Weighted Average Grant Date Fair Value, Granted | 1.98 | |
Weighted Average Grant Date Fair Value, Vested | 2.59 | |
Weighted Average Grant Date Fair Value, Forfeited and cancelled | 2.80 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 2.85 | |
Nonvested Aggregated Intrinsic Value, Beginning balance | $ 153,606 | $ 167,328 |
Stockholders' Equity - Schedu54
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | $ (52,388) | |
Other comprehensive income (loss) before reclassifications, net of tax | (17,192) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1) | |
Other comprehensive income (loss): | (17,193) | $ (22,175) |
Accumulated other comprehensive income, net of tax, Ending balance | (69,581) | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | (52,261) | |
Other comprehensive income (loss) before reclassifications, net of tax | (17,329) | |
Other comprehensive income (loss): | (17,329) | |
Accumulated other comprehensive income, net of tax, Ending balance | (69,590) | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | (127) | |
Other comprehensive income (loss) before reclassifications, net of tax | 137 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1) | |
Other comprehensive income (loss): | 136 | |
Accumulated other comprehensive income, net of tax, Ending balance | $ 9 |
Net Income (Loss) Per Share o55
Net Income (Loss) Per Share of Common Stock - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
BASIC: | ||
Net income (loss) attributable to common stockholders | $ (26,558) | $ (46,496) |
Weighted-average common shares outstanding-basic | 871,093 | 898,344 |
Basic net income (loss) per share | $ (0.03) | $ (0.05) |
DILUTED: | ||
Weighted-average common shares outstanding-basic | 871,093 | 898,344 |
Weighted-average common shares outstanding-diluted | 871,093 | 898,344 |
Diluted net income (loss) per share | $ (0.03) | $ (0.05) |
Common Class A [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | $ (22,471) | $ (39,525) |
Weighted-average common shares outstanding-basic | 737,061 | 763,658 |
Basic net income (loss) per share | $ (0.03) | $ (0.05) |
DILUTED: | ||
Net income (loss) attributable to common stockholders-basic | $ (22,471) | $ (39,525) |
Net income (loss) attributable to common stockholders-diluted | $ (26,558) | $ (46,496) |
Weighted-average common shares outstanding-basic | 737,061 | 763,658 |
Weighted-average common shares outstanding-diluted | 871,093 | 898,344 |
Diluted net income (loss) per share | $ (0.03) | $ (0.05) |
Common Class B [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | $ (3,461) | $ (5,909) |
Weighted-average common shares outstanding-basic | 113,515 | 114,169 |
Basic net income (loss) per share | $ (0.03) | $ (0.05) |
DILUTED: | ||
Net income (loss) attributable to common stockholders-basic | $ (3,461) | $ (5,909) |
Net income (loss) attributable to common stockholders-diluted | $ (3,461) | $ (5,909) |
Weighted-average common shares outstanding-basic | 113,515 | 114,169 |
Weighted-average common shares outstanding-diluted | 113,515 | 114,169 |
Diluted net income (loss) per share | $ (0.03) | $ (0.05) |
Common Class C [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | $ (626) | $ (1,062) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 |
Basic net income (loss) per share | $ (0.03) | $ (0.05) |
DILUTED: | ||
Net income (loss) attributable to common stockholders-basic | $ (626) | $ (1,062) |
Net income (loss) attributable to common stockholders-diluted | $ (626) | $ (1,062) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 |
Weighted-average common shares outstanding-diluted | 20,517 | 20,517 |
Diluted net income (loss) per share | $ (0.03) | $ (0.05) |
Class C Convert To Class A [Member] | Common Class A [Member] | ||
DILUTED: | ||
Reallocation of net income (loss) as a result of common stock class conversion | $ (626) | $ (1,062) |
Conversion of common stock class | 20,517 | 20,517 |
Class B convert to Class A [Member] | Common Class A [Member] | ||
DILUTED: | ||
Reallocation of net income (loss) as a result of common stock class conversion | $ (3,461) | $ (5,909) |
Conversion of common stock class | 113,515 | 114,169 |
Net Income (Loss) Per Share o56
Net Income (Loss) Per Share of Common Stock - Weighted Average Employee Equity Awards (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 92,247 | 118,054 |
Stock options and employee stock purchase plan [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 22,985 | 38,798 |
Restricted Shares [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 5,504 | 11,129 |
Restricted Stock Units (ZSUs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 63,758 | 68,127 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,016 | $ 3,993 |
2,017 | 4,300 |
2,018 | 2,878 |
2,019 | 2,674 |
2,020 | 1,480 |
2021 and thereafter | 394 |
Total operating leases, future minimum payments | $ 15,719 |
Commitments and Contingencies58
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 22,063 |
2,017 | 15,069 |
2,018 | 1,070 |
2,019 | 343 |
Total future minimum other purchase commitments | $ 38,545 |
Commitments and Contingencies59
Commitments and Contingencies - Additional Information (Detail) | Aug. 04, 2015USD ($) | Apr. 02, 2014Case | Apr. 04, 2013Case | Mar. 11, 2013Case | Nov. 19, 2012Case | Aug. 16, 2012Case | Aug. 03, 2012Case | Aug. 01, 2012Case | Jul. 30, 2012Case | Jun. 30, 2013USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($)Case |
Loss Contingencies [Line Items] | ||||||||||||
Line of credit facility, initiation date | Jul. 31, 2011 | |||||||||||
Line of credit facility maximum borrowing capacity | $ | $ 1,000,000,000 | |||||||||||
Line of credit facility commitment fee amount | $ | $ 600,000 | |||||||||||
Amount drawn down under credit facility | $ | $ 0 | $ 0 | ||||||||||
Litigation settlement | $ | $ 23,000,000 | |||||||||||
Delaware [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Claims settled | 1 | |||||||||||
Case One [Member] | California [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Reyes v. Zynga Inc. [Member] | San Francisco [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Lee v. Pincus [Member] | Delaware [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Stockholder Derivative Lawsuits [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 9 | |||||||||||
Zynga Shareholder Derivative Litigation [Member] | San Francisco [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 3 | |||||||||||
Zynga Inc. Derivative Litigation [Member] | Northern California [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 4 | |||||||||||
Sandys v. Pincus [Member] | Delaware [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Amended Credit Facility [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Line of credit facility, extended maturity | 2018-06 | |||||||||||
Line of credit facility maximum borrowing capacity | $ | $ 200,000,000 | |||||||||||
Line of credit facility additional up-front fees | $ | 300,000 | |||||||||||
Line of credit facility commitment fee amount | $ | $ 100,000 | |||||||||||
Line of credit facility frequency of commitment fee payment | Quarterly | |||||||||||
Line of credit facility, interest rate description | The interest rate for the amended credit facility is determined based on a formula using certain market rates, as described in the amended credit agreement. |
Geographical Information - Reve
Geographical Information - Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 186,721 | $ 183,293 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 125,636 | 117,540 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 61,085 | $ 65,753 |
Geographical Information - Re61
Geographical Information - Revenue by Geographical Area (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Percentage of total revenue | 10.00% |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $ 271,590 | $ 273,221 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | 268,613 | 269,721 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $ 2,977 | $ 3,500 |