Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 15, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 776,684,172 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 68,259,136 | |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 738,975 | $ 852,467 |
Accounts receivable, net of allowance of $0 at June 30, 2017 and December 31, 2016 | 85,228 | 77,260 |
Income tax receivable | 249 | 296 |
Restricted cash | 11,182 | 6,199 |
Prepaid expenses and other current assets | 28,078 | 29,254 |
Total current assets | 863,712 | 965,476 |
Goodwill | 642,681 | 613,335 |
Other intangible assets, net | 43,896 | 25,430 |
Property and equipment, net | 267,453 | 269,439 |
Restricted cash | 250 | 3,050 |
Prepaid expenses and other long-term assets | 39,401 | 29,119 |
Total assets | 1,857,393 | 1,905,849 |
Current liabilities: | ||
Accounts payable | 14,264 | 23,999 |
Income tax payable | 4,638 | 1,889 |
Other current liabilities | 76,935 | 75,754 |
Deferred revenue | 155,085 | 141,998 |
Total current liabilities | 250,922 | 243,640 |
Deferred revenue | 92 | 158 |
Deferred tax liabilities | 6,259 | 5,791 |
Other non-current liabilities | 23,213 | 75,596 |
Total liabilities | 280,486 | 325,185 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid in capital - authorized shares: 2,020,517; shares outstanding: 865,461 shares (Class A, 776,685, Class B, 68,259 Class C, 20,517) as of June 30, 2017 and 886,850 (Class A, 770,269, Class B, 96,064, Class C, 20,517) as of December 31, 2016 | 3,390,996 | 3,349,714 |
Accumulated other comprehensive income (loss) | (111,686) | (128,694) |
Accumulated deficit | (1,702,403) | (1,640,356) |
Total stockholders’ equity | 1,576,907 | 1,580,664 |
Total liabilities and stockholders’ equity | $ 1,857,393 | $ 1,905,849 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
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 | 865,461,000 | 886,850,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 776,685,000 | 770,269,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 68,259,000 | 96,064,000 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Online game | $ 163,745 | $ 135,823 | $ 317,226 | $ 272,880 |
Advertising and other | 45,486 | 45,912 | 86,289 | 95,576 |
Total revenue | 209,231 | 181,735 | 403,515 | 368,456 |
Costs and expenses: | ||||
Cost of revenue | 64,172 | 56,103 | 129,049 | 113,242 |
Research and development | 64,615 | 66,233 | 133,817 | 153,970 |
Sales and marketing | 51,201 | 40,631 | 97,821 | 86,975 |
General and administrative | 23,551 | 25,374 | 46,116 | 47,758 |
Total costs and expenses | 203,539 | 188,341 | 406,803 | 401,945 |
Income (loss) from operations | 5,692 | (6,606) | (3,288) | (33,489) |
Interest income | 1,109 | 761 | 2,046 | 1,466 |
Other income (expense), net | 1,614 | 1,905 | 3,050 | 4,005 |
Income (loss) before income taxes | 8,415 | (3,940) | 1,808 | (28,018) |
Provision for (benefit from) income taxes | 3,322 | 506 | 6,189 | 2,986 |
Net income (loss) | $ 5,093 | $ (4,446) | $ (4,381) | $ (31,004) |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
Diluted | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | ||||
Basic | 863,125 | 873,393 | 869,025 | 872,243 |
Diluted | 887,991 | 873,393 | 869,025 | 872,243 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Partners Capital [Abstract] | ||||
Net income (loss) | $ 5,093 | $ (4,446) | $ (4,381) | $ (31,004) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | 11,508 | (30,931) | 16,989 | (48,260) |
Net change on unrealized gains (losses) on available-for-sale investments, net of tax | (4) | (6) | 19 | 130 |
Other comprehensive income (loss), net of tax | 11,504 | (30,937) | 17,008 | (48,130) |
Comprehensive income (loss): | $ 16,597 | $ (35,383) | $ 12,627 | $ (79,134) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (4,381) | $ (31,004) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 16,279 | 21,647 |
Stock-based compensation expense | 33,758 | 56,507 |
(Gain) loss from sales of investments, assets and other, net | (184) | 242 |
Accretion and amortization on marketable securities | 311 | |
Change in deferred income taxes and other | 2,268 | 1,570 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (7,968) | 14,536 |
Income tax receivable | 47 | 772 |
Other assets | (2,641) | (4,442) |
Accounts payable | (8,341) | (14,316) |
Deferred revenue | 13,021 | (12,178) |
Income tax payable | 2,749 | |
Other liabilities | (11,496) | (22,404) |
Net cash provided by (used in) operating activities | 33,111 | 11,241 |
Cash flows from investing activities: | ||
Sales and maturities of marketable securities | 204,802 | |
Acquisition of property and equipment | (4,141) | (3,947) |
Business acquisitions, net of cash acquired | (35,081) | (14,220) |
Proceeds from sale of property and equipment | 148 | 1,577 |
Other investing activities, net | (7,225) | |
Net cash provided by (used in) investing activities | (46,299) | 188,212 |
Cash flows from financing activities: | ||
Taxes paid related to net share settlement of stockholders' equity awards | (9,423) | (1,665) |
Repurchases of common stock | (96,924) | (112,392) |
Proceeds from issuance of common stock | 4,017 | 2,885 |
Net cash provided by (used in) financing activities | (102,330) | (111,172) |
Effect of exchange rate changes on cash and cash equivalents | 2,026 | (2,110) |
Net increase (decrease) in cash and cash equivalents | (113,492) | 86,171 |
Cash and cash equivalents, beginning of period | 852,467 | 742,217 |
Cash and cash equivalents, end of period | $ 738,975 | $ 828,388 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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”) is a leading provider of social game services. We develop, market and operate social games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook. Generally, all of our games are free to play, and we generate revenue through the in-game sale of virtual goods and advertising services. 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, India 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, 2016. Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of June 30, 2017, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016, the interim consolidated statements of cash flows for the six months ended June 30, 2017 and 2016 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 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 and six months ended June 30, 2017 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 compensation expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. There were no changes in our estimated average life of durable virtual goods or discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods in the three and six months ended June 30, 2017. Changes in our estimated average life of durable goods resulted in an increase in revenue and income from operations of $1.9 million during the three months ended June 30, 2016 and $2.2 million during the six months ended June 30, 2016, which was 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 $2.3 million during the three months ended June 30, 2016 and $3.6 million during the six months ended June 30, 2016 of revenue and income from operations, 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 did not impact our reported earnings per share for the three months ended June 30, 2016 and had a $0.01 per share impact on our reported earnings per share in the six months ended June 30, 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), Based on our initial assessment, a key change in the standard that impacts our revenue recognition relates to the explicit collectability threshold a contract must meet before revenue can be recognized. For certain advertising arrangements where we have assessed that collectability is not reasonably assured due to unfavorable payment terms or a history of slow collections, the current practice is to defer revenue recognition until payment is received. However, under the new standard, we will be required to make an assessment of collectability at the inception of the contract and if deemed probable for collection, recognize revenue as advertisements are delivered, which will result in an acceleration in revenue recognition compared to the current method. While we are still completing our assessment for the population of advertisers under consideration, we do not expect this change to have a material impact on our revenue. We previously disclosed the standard would also have an impact on our software licensing related to NaturalMotion technology, which is currently recognized as revenue over time, rather than a point in time. However, as a result of a restructuring plan we implemented in the second quarter of 2017, we will no longer provide maintenance services for any new software licenses sold after June 30, 2017. Therefore, the requirement to estimate the standalone selling price of software licenses separate from any associated maintenance services and recognize revenue for the license when control is transferred will only apply to a small subset of our existing licensing contracts. While this change will result in an acceleration in revenue recognition compared to the current method, the impact is expected to be minimal. We do not anticipate significant changes to our current business processes and systems to support the adoption of the standard in the first quarter of 2018. We are currently in the process of evaluating required disclosures, including the disaggregation of revenue, reconciliation of contract balances and significant judgments used to allow users of our financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. We are also continually evaluating other possible impacts on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on specific topics related to how certain cash receipts and cash payments are classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash, ” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption is permitted. We will adopt the standards in the first quarter of 2018. While we continue to assess the potential impact of the new standards, we expect the adoption of these standards will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business,” In January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements Our financial instruments consist of cash equivalents and accounts receivable. Accounts receivable, net is stated at its carrying value, which approximates fair value. Cash equivalents, consists of money market funds, U.S. government and government agency securities and corporate debt securities, are carried at fair value. We estimate fair value as the exit price, which represents 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. As of December 31, 2016, our contingent consideration liability represented the estimated fair value of the additional consideration payable in connection with our acquisitions of Zindagi Games, Inc. (“Zindagi”) in the first quarter of 2016 and PuzzleSocial, Inc. (“PuzzleSocial”) in the third quarter of 2016. Under the terms of the acquisition agreements, the contingent consideration of up to $60.0 million for Zindagi and $42.0 million for PuzzleSocial could be payable based on the achievement of certain future performance targets during a period of time following the acquisition date (three years for Zindagi and two and a half years for PuzzleSocial). We initially estimated the acquisition date fair value of the contingent consideration liabilities 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. As of June 30, 2017, we do not expect the future performance of the acquired games to meet the required performance targets. Accordingly, we reduced the estimated contingent consideration liabilities for Zindagi and PuzzleSocial to zero, and recorded a net benefit of $0.8 million and $0.9 million during the three and six months ended June 30, 2017, respectively within research and development expense in our consolidated statement of operations. 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 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. June 30, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 381,385 $ — $ — $ 381,385 U.S. government and government agency debt securities (1) — 69,913 — 69,913 Corporate debt securities (1) — 129,867 — 129,867 Total $ 381,385 $ 199,780 $ — $ 581,165 Liabilities: Contingent consideration $ — $ — $ — $ — December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 439,330 $ — $ — $ 439,330 U.S. government and government agency debt securities (1) — 19,987 — 19,987 Corporate debt securities (1) — 269,768 — 269,768 Total $ 439,330 $ 289,755 $ — $ 729,085 Liabilities: Contingent consideration $ — $ — $ 901 $ 901 (1) Includes amounts classified as cash and cash equivalents. We did not have any transfers between valuation levels during the six months ended June 30, 2017. The following table presents the activity for the six months ended June 30, 2017 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Zindagi PuzzleSocial Total Contingent consideration liability – December 31, 2016 $ 180 $ 721 $ 901 Fair value adjustments (180 ) (721 ) (901 ) Contingent consideration liability – June 30, 2017 $ — $ — $ — |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consist of the following (in thousands): June 30, December 31, 2017 2016 Computer equipment $ 29,406 $ 27,046 Software 31,968 31,102 Land 89,130 89,130 Building 198,721 197,689 Furniture and fixtures 10,612 10,494 Leasehold improvements 8,510 8,071 $ 368,347 $ 363,532 Less accumulated depreciation (100,894 ) (94,093 ) Total property and equipment, net $ 267,453 $ 269,439 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions Acquisition of Solitaire Mobile Gaming Applications On February 14, 2017, we purchased Solitaire mobile game applications from Harpan LLC (“Harpan”) and, in connection with the transaction, executed noncompetition agreements with the founders. We acquired these games to expand our card game portfolio. The total consideration paid to Harpan was approximately $42.5 million in cash, of which approximately $35.1 million was allocated to the business combination and the remaining $7.4 million was allocated to the noncompetition agreements with a useful life of 2 years. We refer to the Solitaire mobile games acquired from Harpan as our “Solitaire games”. The following table summarizes the purchase date fair value of acquired net intangible assets from Harpan (in thousands, unaudited): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net intangible assets acquired and is primarily attributable to the expected synergies at the time of the acquisition. The results of operations for our Solitaire games have been included in our consolidated statement of operations since the date of acquisition. Pro forma results of operations related to our acquisition have not been presented as they are not material to our consolidated statement of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets The following table presents the goodwill activity for the six months ended June 30, 2017 (in thousands): Goodwill – December 31, 2016 $ 613,335 Additions 14,610 Foreign currency translation and other adjustments (1) 14,736 Goodwill – June 30, 2017 $ 642,681 (1) The increase is primarily related to translation gains (losses) on goodwill associated with the acquisition of NaturalMotion which the functional currency is denominated in British Pounds. The details of our acquisition-related intangible assets as of June 30, 2017 are as follows (in thousands): June 30, 2017 Gross Value Accumulated Amortization Net Book Developed technology $ 181,149 $ (143,796 ) $ 37,353 Trademarks, branding and domain names 16,290 (10,170 ) 6,120 Acquired lease intangibles 5,708 (5,285 ) 423 Total $ 203,147 $ (159,251 ) $ 43,896 The details of our acquisition-related intangible assets as of December 31, 2016 are as follows (in thousands): December 31, 2016 Gross Accumulated Amortization Net Book Developed technology $ 150,826 $ (132,123 ) $ 18,703 Trademarks, branding and domain names 16,290 (10,063 ) 6,227 Acquired lease intangibles 5,708 (5,208 ) 500 Total $ 172,824 $ (147,394 ) $ 25,430 These assets include $6.1 million of indefinite-lived intangible assets. The remaining assets were, and continue to be, amortized on a straight-line basis. As of June 30, 2017, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2017 $ 6,729 2018 12,309 2019 7,533 2020 6,293 2021 and thereafter 4,912 Total $ 37,776 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The expense from income taxes increased by $2.8 million and $3.2 million in the three and six months ended June 30, 2017, respectively, as compared to the same period of the prior year. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 7. Other Current Liabilities Other current liabilities consist of the following (in thousands): June 30, December 31, 2017 2016 Accrued accounts payable $ 21,922 $ 24,119 Accrued compensation liability 19,738 22,554 Accrued restructuring liability 3,670 4,987 Other current liabilities 31,605 24,094 Total other current liabilities $ 76,935 $ 75,754 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, vendor expenses and amounts held in escrow related to acquisitions. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 8. Restructuring During the three months ended June 30, 2017, we recorded a net restructuring charge of $1.4 million, of which $1.3 million was included in research and development and $0.1 million was included in general and administrative within our consolidated statement of operations. During the six months ended June 30, 2017, we recorded a net restructuring charge of $0.6 million, of which $0.3 million was included as research and development and $0.3 million was included as general and administrative within our consolidated statement of operations. Q2 2017 Restructuring Plan During the second quarter of 2017, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with restructuring, we recorded $1.3 million of expense in the three and six months ended June 30, 2017, which is included in operating expenses in our consolidated statement of operations. The $1.3 million restructuring charge is comprised of $1.2 million of employee severance costs and $0.1 million of other costs. The remaining liability related to the Q2 2017 restructuring plan as of June 30, 2017 was $0.1 million and is expected to be paid out over the next year. The following table presents the activity for the Q2 2017 restructuring plan (in thousands): Q2 2017 Restructuring Plan Restructuring liability – December 31, 2016 $ — Restructuring expense and adjustments 1,273 Cash payments (1,148 ) Restructuring liability – June 30, 2017 $ 125 Cumulative costs to date, as of June 30, 2017 $ 1,273 Total costs expected to be incurred, as of June 30, 2017 $ 1,429 During the second quarter of 2015, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with restructuring, we recorded additional expense of $0.1 million in the three months ended June 30, 2017 and a net benefit of $0.7 million in the six months ended June 30, 2017, which is included in operating expenses in our consolidated statement of operations. The remaining liability related to the Q2 2015 restructuring plan as of June 30, 2017 was $15.9 million and is expected to be paid out over the next 4.9 years. The following table presents the activity for the Q2 2015 restructuring plan (in thousands): Q2 2015 Restructuring Plan Restructuring liability – December 31, 2016 $ 19,388 Restructuring expense and adjustments (676 ) Cash payments (2,772 ) Restructuring liability – June 30, 2017 $ 15,940 Cumulative costs to date, as of June 30, 2017 $ 34,099 Total costs expected to be incurred, as of June 30, 2017 $ 34,099 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity We recorded stock-based compensation 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 371 $ 1,127 $ 990 $ 1,776 Research and development 10,483 20,213 22,196 44,416 Sales and marketing 1,751 2,206 3,538 4,197 General and administrative 3,627 3,353 7,034 6,118 Total stock-based compensation expense $ 16,232 $ 26,899 $ 33,758 $ 56,507 The following table shows stock option activity for the six months ended June 30, 2017 (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 Options Price Outstanding (in years) Balance as of December 31, 2016 36,858 $ 2.08 $ 26,411 6.81 Granted 848 3.62 Forfeited and cancelled (2,514 ) 3.58 Exercised (1,633 ) 0.91 Balance as of June 30, 2017 33,559 $ 2.06 $ 54,062 6.67 The following table shows a summary of ZSU activity for the six months ended June 30, 2017 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2016 59,452 $ 2.66 $ 152,792 Granted 15,177 3.34 Vested (12,430 ) 2.85 Forfeited and cancelled (10,919 ) 2.51 Unvested as of June 30, 2017 51,280 $ 2.85 $ 186,659 The following table shows a summary of changes in accumulated other comprehensive income by component for the six months ended June 30, 2017 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 16,989 19 17,008 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current-period other comprehensive income (loss) 16,989 19 17,008 Balance as of June 30, 2017 $ (111,682 ) $ (4 ) $ (111,686 ) In November 2016, we announced that our Board of Directors authorized a share repurchase program allowing us to repurchase up to $200 million of our outstanding shares of Class A common stock (“2016 Share Repurchase Program”). In the first quarter of 2017, we repurchased 31.2 million shares for our Class A common stock under the repurchase program at a weighted average price of $2.70 per share for a total of $84.5 million. In the second quarter of 2017, we repurchased 3.0 million shares for our Class A common stock under the repurchase program at a weighted average price of $2.79 per share for a total of $8.4 million. All shares repurchased during the six months ended were retired. All of our stock repurchases under the 2016 Share Repurchase Program were made through open market purchases under 10b5-1 plans. |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 10. 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 (on a one-to-one basis) 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 June 30, 2017 2016 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ 4,565 $ 407 $ 121 $ (3,805 ) $ (537 ) $ (104 ) Weighted-average common shares outstanding 773,704 68,904 20,517 747,482 105,394 20,517 Basic net income (loss) per share $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) DILUTED: Net income (loss) attributable to common stockholders $ 4,565 $ 407 $ 121 $ (3,805 ) $ (537 ) $ (104 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 121 — — (104 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 407 — — (537 ) — — Net income (loss) attributable to common stockholders-diluted $ 5,093 $ 407 $ 121 $ (4,446 ) $ (537 ) $ (104 ) Weighted-average common shares outstanding-basic 773,704 68,904 20,517 747,482 105,394 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 68,904 — — 105,394 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,811 917 — — — — ZSUs 14,710 — — — — — Performance-based ZSUs 345 — — — — — Weighted-average common shares outstanding-diluted 887,991 69,821 20,517 873,393 105,394 20,517 Diluted net income (loss) per share $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) Six Months Ended June 30, 2017 2016 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (3,896 ) $ (382 ) $ (103 ) $ (26,384 ) $ (3,891 ) $ (729 ) Weighted-average common shares outstanding 772,679 75,829 20,517 742,271 109,455 20,517 Basic net income (loss) per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.04 ) DILUTED: Net income (loss) attributable to common stockholders $ (3,896 ) $ (382 ) $ (103 ) $ (26,384 ) $ (3,891 ) $ (729 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (103 ) — — (729 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (382 ) — — (3,891 ) — — Net income (loss) attributable to common stockholders-diluted $ (4,381 ) $ (382 ) $ (103 ) $ (31,004 ) $ (3,891 ) $ (729 ) Weighted-average common shares outstanding-basic 772,679 75,829 20,517 742,271 109,455 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 75,829 — — 109,455 — — Weighted-average common shares outstanding-diluted 869,025 75,829 20,517 872,243 109,455 20,517 Diluted net income (loss) per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.04 ) 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options and employee stock purchase plan 16,827 24,939 35,138 24,059 Restricted shares — 3,692 1,062 4,580 ZSUs 2,770 63,239 49,263 62,983 Total 19,597 91,870 85,463 91,622 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Lease Commitments We have entered into operating leases for facilities. As of June 30, 2017, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: Remaining 2017 $ 2,406 2018 3,925 2019 3,067 2020 1,006 2021 657 2022 and thereafter 33 Total $ 11,094 Licensor and Marketing Commitments We have entered into several contracts with licensors that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. As of June 30, 2017, future minimum guarantee royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: Remaining 2017 $ 13,275 2018 8,141 2019 7,750 2020 2,250 2021 and thereafter 6,399 Total $ 37,815 The amounts represented in the table above for marketing commitments reflect our minimum cash obligations for the respective calendar years based on contractual terms, but do not necessarily represent the periods in which they will be expensed in the Company’s consolidated statement of operations. Other Purchase Commitments We have entered into several contracts for hosting of data systems and other services. As of June 30, 2017, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2017 $ 5,889 2018 3,432 2019 1,278 2020 and thereafter 285 Total $ 10,884 Legal Matters We are involved in legal and regulatory proceedings on an ongoing basis. Some of these proceedings are in early stages and may seek an indeterminate amount of damages. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, we have disclosed such an estimate, if material. If such a loss or range of losses is not reasonably estimable, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require us to change our business practices in a manner that could have a material adverse impact on our business. There are no amounts accrued for legal and regulatory proceedings for which we believe a loss is probable as of June 30, 2017. We recognize legal expenses as incurred. Derivative Litigation Since August 3, 2012, eight 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 and our secondary offering in April 2012 by allegedly making 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 U.S. 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. 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. As discussed above, on February 3, 2017, Mayer et al. v. Zynga On March 31, 2017, Umrao Mayer, George Simmons, Zindagi Games, Inc., and Cam Tech Building, LLC initiated an arbitration against the Company. In their Statement of Claims, the claimants assert five claims for relief, including Breach of Contracts, Breach of the Implied Covenant of Good Faith and Fair Dealing, Estoppel, Conversion, and Declaratory Relief with Respect to Unlawful Non-Competition and Non-Solicitation Agreements. The primary allegations made by the claimants are that the Company breached an Asset Purchase Agreement dated December 30, 2015 (the “Zindagi Acquisition Agreement”) by failing to provide the claimants an opportunity to achieve an earnout payment, is unlawfully withholding an escrow payment due under the Zindagi Acquisition Agreement, improperly terminated Messrs. Mayer and Simmons on November 29, 2016, breached a lease agreement, and required Messrs. Mayer and Simmons to enter into unlawful employment agreements. The claimants assert that they are entitled to compensatory damages in excess of $60 million, the release of $875,000 plus interest being held in escrow, exemplary damages, damages for the remaining lease payments, declaratory relief, and attorneys’ fees and costs. On May 1, 2017, the Company filed its response, including a general denial of the allegations and a counterclaim for $2.5 million due to the termination of Messrs. Mayer and Simmons for “Cause” under the Zindagi Acquisition Agreement. The Company is also seeking its attorneys’ fees and costs. The arbitration hearing date has been set for January 29, 2018. While there can be no assurance of favorable outcomes, the Company believes it has a meritorious counterclaim and defenses and will vigorously defend this action, and, accordingly, believes a loss, while possible, is not probable for this action. Further, because this action is in its early stages, the Company does not believe a reasonable estimate of potential loss or range of potential loss, if any, is determinable at this time. Other The Company is, at various times, also party to various other legal proceedings and claims not previously discussed 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, expensive legal fees, 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. |
Geographical Information
Geographical Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographical Information | 12. Geographical Information The following represents our revenue based on the geographic location of our players (in thousands): Revenue Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 United States $ 139,768 $ 123,547 $ 267,973 $ 249,183 All other countries (1) 69,463 58,188 135,542 119,273 Total revenue $ 209,231 $ 181,735 $ 403,515 $ 368,456 ( 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 June 30, December 31, 2017 2016 United States $ 264,743 $ 267,324 All other countries 2,710 2,115 Total property and equipment, net $ 267,453 $ 269,439 |
Business Developments
Business Developments | 6 Months Ended |
Jun. 30, 2017 | |
Leases [Abstract] | |
Business Developments | 13. Business Developments During the second quarter of 2017, the Company entered into an industrial gross lease agreement to provide approximately 287,016 square feet of its office space in San Francisco, California to a tenant beginning in March 2018 until February 2027. The agreement provides for total rental payments to be received by the Company of $167.7 million over the term of the lease, with the Company providing tenant improvement allowances of $55.2 million. In connection with executing the lease agreement, the Company accrued deferred lease origination costs of $6.5 million. |
Overview and Summary of Signi20
Overview and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of June 30, 2017, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016, the interim consolidated statements of cash flows for the six months ended June 30, 2017 and 2016 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 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 and six months ended June 30, 2017 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 compensation expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. There were no changes in our estimated average life of durable virtual goods or discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods in the three and six months ended June 30, 2017. Changes in our estimated average life of durable goods resulted in an increase in revenue and income from operations of $1.9 million during the three months ended June 30, 2016 and $2.2 million during the six months ended June 30, 2016, which was 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 $2.3 million during the three months ended June 30, 2016 and $3.6 million during the six months ended June 30, 2016 of revenue and income from operations, 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 did not impact our reported earnings per share for the three months ended June 30, 2016 and had a $0.01 per share impact on our reported earnings per share in the six months ended June 30, 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), Based on our initial assessment, a key change in the standard that impacts our revenue recognition relates to the explicit collectability threshold a contract must meet before revenue can be recognized. For certain advertising arrangements where we have assessed that collectability is not reasonably assured due to unfavorable payment terms or a history of slow collections, the current practice is to defer revenue recognition until payment is received. However, under the new standard, we will be required to make an assessment of collectability at the inception of the contract and if deemed probable for collection, recognize revenue as advertisements are delivered, which will result in an acceleration in revenue recognition compared to the current method. While we are still completing our assessment for the population of advertisers under consideration, we do not expect this change to have a material impact on our revenue. We previously disclosed the standard would also have an impact on our software licensing related to NaturalMotion technology, which is currently recognized as revenue over time, rather than a point in time. However, as a result of a restructuring plan we implemented in the second quarter of 2017, we will no longer provide maintenance services for any new software licenses sold after June 30, 2017. Therefore, the requirement to estimate the standalone selling price of software licenses separate from any associated maintenance services and recognize revenue for the license when control is transferred will only apply to a small subset of our existing licensing contracts. While this change will result in an acceleration in revenue recognition compared to the current method, the impact is expected to be minimal. We do not anticipate significant changes to our current business processes and systems to support the adoption of the standard in the first quarter of 2018. We are currently in the process of evaluating required disclosures, including the disaggregation of revenue, reconciliation of contract balances and significant judgments used to allow users of our financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. We are also continually evaluating other possible impacts on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on specific topics related to how certain cash receipts and cash payments are classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash, ” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption is permitted. We will adopt the standards in the first quarter of 2018. While we continue to assess the potential impact of the new standards, we expect the adoption of these standards will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business,” In January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities within the fair value hierarchy are as follows (in thousands): June 30, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 381,385 $ — $ — $ 381,385 U.S. government and government agency debt securities (1) — 69,913 — 69,913 Corporate debt securities (1) — 129,867 — 129,867 Total $ 381,385 $ 199,780 $ — $ 581,165 Liabilities: Contingent consideration $ — $ — $ — $ — December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 439,330 $ — $ — $ 439,330 U.S. government and government agency debt securities (1) — 19,987 — 19,987 Corporate debt securities (1) — 269,768 — 269,768 Total $ 439,330 $ 289,755 $ — $ 729,085 Liabilities: Contingent consideration $ — $ — $ 901 $ 901 (1) Includes amounts classified as cash and cash equivalents. |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the six months ended June 30, 2017 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Zindagi PuzzleSocial Total Contingent consideration liability – December 31, 2016 $ 180 $ 721 $ 901 Fair value adjustments (180 ) (721 ) (901 ) Contingent consideration liability – June 30, 2017 $ — $ — $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): June 30, December 31, 2017 2016 Computer equipment $ 29,406 $ 27,046 Software 31,968 31,102 Land 89,130 89,130 Building 198,721 197,689 Furniture and fixtures 10,612 10,494 Leasehold improvements 8,510 8,071 $ 368,347 $ 363,532 Less accumulated depreciation (100,894 ) (94,093 ) Total property and equipment, net $ 267,453 $ 269,439 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Solitaire Mobile Gaming Applications [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of acquired net intangible assets from Harpan (in thousands, unaudited): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the goodwill activity for the six months ended June 30, 2017 (in thousands): Goodwill – December 31, 2016 $ 613,335 Additions 14,610 Foreign currency translation and other adjustments (1) 14,736 Goodwill – June 30, 2017 $ 642,681 (1) The increase is primarily related to translation gains (losses) on goodwill associated with the acquisition of NaturalMotion which the functional currency is denominated in British Pounds. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of June 30, 2017 are as follows (in thousands): June 30, 2017 Gross Value Accumulated Amortization Net Book Developed technology $ 181,149 $ (143,796 ) $ 37,353 Trademarks, branding and domain names 16,290 (10,170 ) 6,120 Acquired lease intangibles 5,708 (5,285 ) 423 Total $ 203,147 $ (159,251 ) $ 43,896 The details of our acquisition-related intangible assets as of December 31, 2016 are as follows (in thousands): December 31, 2016 Gross Accumulated Amortization Net Book Developed technology $ 150,826 $ (132,123 ) $ 18,703 Trademarks, branding and domain names 16,290 (10,063 ) 6,227 Acquired lease intangibles 5,708 (5,208 ) 500 Total $ 172,824 $ (147,394 ) $ 25,430 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of June 30, 2017, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2017 $ 6,729 2018 12,309 2019 7,533 2020 6,293 2021 and thereafter 4,912 Total $ 37,776 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): June 30, December 31, 2017 2016 Accrued accounts payable $ 21,922 $ 24,119 Accrued compensation liability 19,738 22,554 Accrued restructuring liability 3,670 4,987 Other current liabilities 31,605 24,094 Total other current liabilities $ 76,935 $ 75,754 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Restructuring Plan Activity | The following table presents the activity for the Q2 2017 restructuring plan (in thousands): Q2 2017 Restructuring Plan Restructuring liability – December 31, 2016 $ — Restructuring expense and adjustments 1,273 Cash payments (1,148 ) Restructuring liability – June 30, 2017 $ 125 Cumulative costs to date, as of June 30, 2017 $ 1,273 Total costs expected to be incurred, as of June 30, 2017 $ 1,429 The following table presents the activity for the Q2 2015 restructuring plan (in thousands): Q2 2015 Restructuring Plan Restructuring liability – December 31, 2016 $ 19,388 Restructuring expense and adjustments (676 ) Cash payments (2,772 ) Restructuring liability – June 30, 2017 $ 15,940 Cumulative costs to date, as of June 30, 2017 $ 34,099 Total costs expected to be incurred, as of June 30, 2017 $ 34,099 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) | We recorded stock-based compensation 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 371 $ 1,127 $ 990 $ 1,776 Research and development 10,483 20,213 22,196 44,416 Sales and marketing 1,751 2,206 3,538 4,197 General and administrative 3,627 3,353 7,034 6,118 Total stock-based compensation expense $ 16,232 $ 26,899 $ 33,758 $ 56,507 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the six months ended June 30, 2017 (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 Options Price Outstanding (in years) Balance as of December 31, 2016 36,858 $ 2.08 $ 26,411 6.81 Granted 848 3.62 Forfeited and cancelled (2,514 ) 3.58 Exercised (1,633 ) 0.91 Balance as of June 30, 2017 33,559 $ 2.06 $ 54,062 6.67 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the six months ended June 30, 2017 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2016 59,452 $ 2.66 $ 152,792 Granted 15,177 3.34 Vested (12,430 ) 2.85 Forfeited and cancelled (10,919 ) 2.51 Unvested as of June 30, 2017 51,280 $ 2.85 $ 186,659 |
Schedule of Accumulated Other Comprehensive Income Loss | The following table shows a summary of changes in accumulated other comprehensive income by component for the six months ended June 30, 2017 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 16,989 19 17,008 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net current-period other comprehensive income (loss) 16,989 19 17,008 Balance as of June 30, 2017 $ (111,682 ) $ (4 ) $ (111,686 ) |
Net Income (Loss) Per Share o28
Net Income (Loss) Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 2016 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ 4,565 $ 407 $ 121 $ (3,805 ) $ (537 ) $ (104 ) Weighted-average common shares outstanding 773,704 68,904 20,517 747,482 105,394 20,517 Basic net income (loss) per share $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) DILUTED: Net income (loss) attributable to common stockholders $ 4,565 $ 407 $ 121 $ (3,805 ) $ (537 ) $ (104 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 121 — — (104 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 407 — — (537 ) — — Net income (loss) attributable to common stockholders-diluted $ 5,093 $ 407 $ 121 $ (4,446 ) $ (537 ) $ (104 ) Weighted-average common shares outstanding-basic 773,704 68,904 20,517 747,482 105,394 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 68,904 — — 105,394 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,811 917 — — — — ZSUs 14,710 — — — — — Performance-based ZSUs 345 — — — — — Weighted-average common shares outstanding-diluted 887,991 69,821 20,517 873,393 105,394 20,517 Diluted net income (loss) per share $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) Six Months Ended June 30, 2017 2016 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (3,896 ) $ (382 ) $ (103 ) $ (26,384 ) $ (3,891 ) $ (729 ) Weighted-average common shares outstanding 772,679 75,829 20,517 742,271 109,455 20,517 Basic net income (loss) per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.04 ) DILUTED: Net income (loss) attributable to common stockholders $ (3,896 ) $ (382 ) $ (103 ) $ (26,384 ) $ (3,891 ) $ (729 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (103 ) — — (729 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (382 ) — — (3,891 ) — — Net income (loss) attributable to common stockholders-diluted $ (4,381 ) $ (382 ) $ (103 ) $ (31,004 ) $ (3,891 ) $ (729 ) Weighted-average common shares outstanding-basic 772,679 75,829 20,517 742,271 109,455 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 75,829 — — 109,455 — — Weighted-average common shares outstanding-diluted 869,025 75,829 20,517 872,243 109,455 20,517 Diluted net income (loss) per share $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.04 ) |
Shares excluded from Computation of Diluted Net Income (Loss) per Share | 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options and employee stock purchase plan 16,827 24,939 35,138 24,059 Restricted shares — 3,692 1,062 4,580 ZSUs 2,770 63,239 49,263 62,983 Total 19,597 91,870 85,463 91,622 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | We have entered into operating leases for facilities. As of June 30, 2017, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: Remaining 2017 $ 2,406 2018 3,925 2019 3,067 2020 1,006 2021 657 2022 and thereafter 33 Total $ 11,094 |
Schedule of Future Minimum Guarantee Royalty Payments to Licensors and Marketing Commitments | We have entered into several contracts with licensors that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. As of June 30, 2017, future minimum guarantee royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: Remaining 2017 $ 13,275 2018 8,141 2019 7,750 2020 2,250 2021 and thereafter 6,399 Total $ 37,815 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts for hosting of data systems and other services. As of June 30, 2017, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2017 $ 5,889 2018 3,432 2019 1,278 2020 and thereafter 285 Total $ 10,884 |
Geographical Information (Table
Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 United States $ 139,768 $ 123,547 $ 267,973 $ 249,183 All other countries (1) 69,463 58,188 135,542 119,273 Total revenue $ 209,231 $ 181,735 $ 403,515 $ 368,456 ( 1) No country exceeded 10% of our total revenue for any periods presented. |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): Property and equipment, net June 30, December 31, 2017 2016 United States $ 264,743 $ 267,324 All other countries 2,710 2,115 Total property and equipment, net $ 267,453 $ 269,439 |
Overview and Summary of Signi31
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | |||
Initial offering period | December 2,011 | ||
Changes in revenue from adjustments of prior period deferred revenue | $ 1.9 | $ 2.2 | |
Revenue and income from operations | $ 2.3 | $ 3.6 | |
Impact on reported earnings per share | $ 0 | $ 0.01 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value assets liabilities transfers between valuation levels | $ 0 | |||
Zindagi [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maximum amount payable | $ 60,000,000 | |||
Potential future payments maximum period | 3 years | |||
PuzzleSocial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maximum amount payable | $ 42,000,000 | |||
Potential future payments maximum period | 2 years 6 months | |||
Zindagi and PuzzleSocial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | $ 0 | 0 | ||
Research and Development [Member] | Zindagi and PuzzleSocial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in fair value of contingent consideration liability | $ 800,000 | $ 900,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 581,165 | $ 729,085 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 381,385 | 439,330 |
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 | 69,913 | 19,987 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 129,867 | 269,768 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 901 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 381,385 | 439,330 |
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 | 381,385 | 439,330 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 199,780 | 289,755 |
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 | 69,913 | 19,987 |
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 | 129,867 | 269,768 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | $ 0 | 901 |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | $ 901 |
Fair Value Measurements - Fai34
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | $ 901 |
Fair value adjustments | (901) |
Contingent consideration liability, Ending Balance | 0 |
Zindagi [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | 180 |
Fair value adjustments | (180) |
Contingent consideration liability, Ending Balance | 0 |
PuzzleSocial [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | 721 |
Fair value adjustments | (721) |
Contingent consideration liability, Ending Balance | $ 0 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 368,347 | $ 363,532 |
Less accumulated depreciation | (100,894) | (94,093) |
Total property and equipment, net | 267,453 | 269,439 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,406 | 27,046 |
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 | 198,721 | 197,689 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,612 | 10,494 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,510 | 8,071 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31,968 | $ 31,102 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 14, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Intangible assets | $ 43,896 | $ 25,430 | |
Harpan LLC [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition effective date of acquisition | Feb. 14, 2017 | ||
Business acquisition, cost of acquired entity, cash paid | $ 42,500 | ||
Estimated amount allocated to business combination | 35,081 | ||
Harpan LLC [Member] | Noncompetition Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 7,400 | ||
Intangible assets, useful life | 2 years |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Feb. 14, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 642,681 | $ 613,335 | |
Harpan LLC [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 14,610 | ||
Estimated Fair Value, Total | 35,081 | ||
Harpan LLC [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value, Intangible assets | $ 20,471 |
Acquisitions - Schedule of Pu38
Acquisitions - Schedule of Purchase Price Allocation (Parenthetical) (Detail) | Feb. 14, 2017 |
Harpan LLC [Member] | Developed Technology [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 5 years |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill Roll Forward | |
Goodwill, beginning balance | $ 613,335 |
Additions | 14,610 |
Foreign currency translation and other adjustments | 14,736 |
Goodwill, ending balance | $ 642,681 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 203,147 | $ 172,824 |
Accumulated Amortization | (159,251) | (147,394) |
Net Book Value | 43,896 | 25,430 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 181,149 | 150,826 |
Accumulated Amortization | (143,796) | (132,123) |
Net Book Value | 37,353 | 18,703 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,290 | 16,290 |
Accumulated Amortization | (10,170) | (10,063) |
Net Book Value | 6,120 | 6,227 |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (5,285) | (5,208) |
Net Book Value | $ 423 | $ 500 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions | Jun. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Indefinite-lived intangible assets | $ 6.1 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
Remaining 2,017 | $ 6,729 |
2,018 | 12,309 |
2,019 | 7,533 |
2,020 | 6,293 |
2021 and thereafter | 4,912 |
Total | $ 37,776 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Increase in income tax expense benefit | $ 2.8 | $ 3.2 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued accounts payable | $ 21,922 | $ 24,119 |
Accrued compensation liability | 19,738 | 22,554 |
Accrued restructuring liability | 3,670 | 4,987 |
Other current liabilities | 31,605 | 24,094 |
Total other current liabilities | $ 76,935 | $ 75,754 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charge | $ 1,400 | $ 600 | |
Q2 2017 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charge | 1,300 | 1,300 | |
Employee severance Costs | 1,200 | 1,200 | |
Other costs | 100 | 100 | |
Restructuring liability | 125 | 125 | $ 0 |
Restructuring benefits | (1,273) | ||
Q2 2015 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 15,940 | 15,940 | $ 19,388 |
Additional expenses | 100 | ||
Restructuring benefits | $ 676 | ||
Restructuring liability, expected paid out period | 4 years 10 months 24 days | ||
Research and Development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charge | 1,300 | $ 300 | |
General and Administrative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Net restructuring charge | $ 100 | $ 300 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Plan Activity (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Q2 2017 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | $ 0 |
Restructuring expense and adjustments | 1,273 |
Cash payments | (1,148) |
Restructuring liability, Ending balance | 125 |
Cumulative costs to date, as of June 30, 2017 | 1,273 |
Total costs expected to be incurred, as of June 30, 2017 | 1,429 |
Q2 2015 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | 19,388 |
Restructuring expense and adjustments | (676) |
Cash payments | (2,772) |
Restructuring liability, Ending balance | 15,940 |
Cumulative costs to date, as of June 30, 2017 | 34,099 |
Total costs expected to be incurred, as of June 30, 2017 | $ 34,099 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 16,232 | $ 26,899 | $ 33,758 | $ 56,507 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 371 | 1,127 | 990 | 1,776 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 10,483 | 20,213 | 22,196 | 44,416 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1,751 | 2,206 | 3,538 | 4,197 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 3,627 | $ 3,353 | $ 7,034 | $ 6,118 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 36,858 | |
Stock Options, Granted | 848 | |
Stock Options, Forfeited and cancelled | (2,514) | |
Stock Options, Exercised | (1,633) | |
Stock Options Outstanding, Ending balance | 33,559 | 36,858 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.08 | |
Weighted Average Exercise Price, Granted | 3.62 | |
Weighted Average Exercise Price, Forfeited and cancelled | 3.58 | |
Weighted Average Exercise Price, Exercised | 0.91 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 2.06 | $ 2.08 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 54,062 | $ 26,411 |
Weighted Average Contractual Term (in years) | 6 years 8 months 2 days | 6 years 9 months 22 days |
Stockholders' Equity - Schedu49
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 | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested Outstanding Shares, Beginning balance | 59,452 | |
Nonvested Shares, Granted | 15,177 | |
Nonvested Shares, Vested | (12,430) | |
Nonvested Shares, Forfeited and cancelled | (10,919) | |
Nonvested Outstanding Shares, Ending balance | 51,280 | |
Weighted Average Grant Date Fair Value, Beginning balance | $ 2.66 | |
Weighted Average Grant Date Fair Value, Granted | 3.34 | |
Weighted Average Grant Date Fair Value, Vested | 2.85 | |
Weighted Average Grant Date Fair Value, Forfeited and cancelled | 2.51 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 2.85 | |
Nonvested Aggregated Intrinsic Value, Unvested | $ 186,659 | $ 152,792 |
Stockholders' Equity - Schedu50
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income, net of tax, Beginning balance | $ 1,580,664 | |||
Other comprehensive income (loss), net of tax | $ 11,504 | $ (30,937) | 17,008 | $ (48,130) |
Accumulated other comprehensive income, net of tax, Ending balance | 1,576,907 | 1,576,907 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income, net of tax, Beginning balance | (128,671) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 16,989 | |||
Other comprehensive income (loss), net of tax | 16,989 | |||
Accumulated other comprehensive income, net of tax, Ending balance | (111,682) | (111,682) | ||
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 | (23) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 19 | |||
Other comprehensive income (loss), net of tax | 19 | |||
Accumulated other comprehensive income, net of tax, Ending balance | (4) | (4) | ||
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income, net of tax, Beginning balance | (128,694) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 17,008 | |||
Other comprehensive income (loss), net of tax | 17,008 | |||
Accumulated other comprehensive income, net of tax, Ending balance | $ (111,686) | $ (111,686) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - 2016 Share Repurchase Program [Member] - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Nov. 30, 2016 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program, authorized amount | $ 200,000,000 | ||
Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of common stock | 3 | 31.2 | |
Treasury stock acquired, average cost per share | $ 2.79 | $ 2.70 | |
Stock repurchase program, aggregate number of shares repurchased value | $ 8,400,000 | $ 84,500,000 |
Net Income (Loss) Per Share o52
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017 | |
Class B And Class C Convert To Class A [Member] | |
Earnings Per Share Diluted [Line Items] | |
Class of common stock conversion ratio | 100.00% |
Net Income (Loss) Per Share o53
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 5,093 | $ (4,446) | $ (4,381) | $ (31,004) |
Weighted-average common shares outstanding-basic | 863,125 | 873,393 | 869,025 | 872,243 |
Basic net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
DILUTED: | ||||
Weighted-average common shares outstanding-basic | 863,125 | 873,393 | 869,025 | 872,243 |
Weighted-average common shares outstanding-diluted | 887,991 | 873,393 | 869,025 | 872,243 |
Diluted net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
Common Class A [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 4,565 | $ (3,805) | $ (3,896) | $ (26,384) |
Weighted-average common shares outstanding-basic | 773,704 | 747,482 | 772,679 | 742,271 |
Basic net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders-basic | $ 4,565 | $ (3,805) | $ (3,896) | $ (26,384) |
Net income (loss) attributable to common stockholders-diluted | $ 5,093 | $ (4,446) | $ (4,381) | $ (31,004) |
Weighted-average common shares outstanding-basic | 773,704 | 747,482 | 772,679 | 742,271 |
Weighted-average common shares outstanding-diluted | 887,991 | 873,393 | 869,025 | 872,243 |
Diluted net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
Common Class A [Member] | Stock options and employee stock purchase plan [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 9,811 | |||
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 14,710 | |||
Common Class A [Member] | Performance Based Restricted Stock Units (ZSUs) [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 345 | |||
Common Class B [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 407 | $ (537) | $ (382) | $ (3,891) |
Weighted-average common shares outstanding-basic | 68,904 | 105,394 | 75,829 | 109,455 |
Basic net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders-basic | $ 407 | $ (537) | $ (382) | $ (3,891) |
Net income (loss) attributable to common stockholders-diluted | $ 407 | $ (537) | $ (382) | $ (3,891) |
Weighted-average common shares outstanding-basic | 68,904 | 105,394 | 75,829 | 109,455 |
Weighted-average common shares outstanding-diluted | 69,821 | 105,394 | 75,829 | 109,455 |
Diluted net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
Common Class B [Member] | Stock options and employee stock purchase plan [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 917 | |||
Common Class C [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 121 | $ (104) | $ (103) | $ (729) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 | 20,517 | 20,517 |
Basic net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders-basic | $ 121 | $ (104) | $ (103) | $ (729) |
Net income (loss) attributable to common stockholders-diluted | $ 121 | $ (104) | $ (103) | $ (729) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 | 20,517 | 20,517 |
Weighted-average common shares outstanding-diluted | 20,517 | 20,517 | 20,517 | 20,517 |
Diluted net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.01) | $ (0.04) |
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 | $ 121 | $ (104) | $ (103) | $ (729) |
Conversion of common stock class | 20,517 | 20,517 | 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 | $ 407 | $ (537) | $ (382) | $ (3,891) |
Conversion of common stock class | 68,904 | 105,394 | 75,829 | 109,455 |
Net Income (Loss) Per Share o54
Net Income (Loss) Per Share of Common Stock - Shares excluded from Computation of Diluted Net Income (Loss) per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 19,597 | 91,870 | 85,463 | 91,622 |
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 | 16,827 | 24,939 | 35,138 | 24,059 |
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 | 3,692 | 1,062 | 4,580 | |
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 | 2,770 | 63,239 | 49,263 | 62,983 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
Remaining 2,017 | $ 2,406 |
2,018 | 3,925 |
2,019 | 3,067 |
2,020 | 1,006 |
2,021 | 657 |
2022 and thereafter | 33 |
Total | $ 11,094 |
Commitments and Contingencies56
Commitments and Contingencies - Schedule of Future Minimum Guarantee Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2,017 | $ 13,275 |
2,018 | 8,141 |
2,019 | 7,750 |
2,020 | 2,250 |
2021 and thereafter | 6,399 |
Total | $ 37,815 |
Commitments and Contingencies57
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2,017 | $ 5,889 |
2,018 | 3,432 |
2,019 | 1,278 |
2020 and thereafter | 285 |
Total | $ 10,884 |
Commitments and Contingencies58
Commitments and Contingencies - Additional Information (Detail) | May 01, 2017USD ($) | Mar. 31, 2017USD ($)Claim | Apr. 04, 2014Case | Mar. 11, 2013Case | Aug. 16, 2012Case | Aug. 03, 2012Case | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrued for legal and regulatory proceeding, estimate of possible loss | $ | $ 0 | ||||||
Delaware [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Claims filed | 1 | ||||||
Stockholder Derivative Lawsuits [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Claims filed | 8 | ||||||
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 | ||||||
Mayer et al. v. Zynga [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims relief | Claim | 5 | ||||||
Compensatory damages held in escrow | $ | $ 875,000 | ||||||
Loss contingencies for counter claims | $ | $ 2,500,000 | ||||||
Arbitration hearing date | January 29, 2018 | ||||||
Mayer et al. v. Zynga [Member] | Minimum [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Entitled to compensatory damages | $ | $ 60,000,000 |
Geographical Information - Reve
Geographical Information - Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 209,231 | $ 181,735 | $ 403,515 | $ 368,456 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 139,768 | 123,547 | 267,973 | 249,183 |
All Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 69,463 | $ 58,188 | $ 135,542 | $ 119,273 |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 267,453 | $ 269,439 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 264,743 | 267,324 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,710 | $ 2,115 |
Business Developments - Additio
Business Developments - Additional Information (Detail) - San Francisco, California [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)ft² | |
Lessor Lease Description [Line Items] | |
Area of office space leased | ft² | 287,016 |
Leases beginning date | 2018-03 |
Lease expiration date | Feb. 28, 2027 |
Total rental payments to be received | $ 167.7 |
Tenant improvement allowances | 55.2 |
Accrued deferred lease origination costs | $ 6.5 |