Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 15, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | |
Entity Common Stock, Shares Outstanding | 860,181,542 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 210,177 | $ 372,870 |
Short-term investments | 182,002 | 308,506 |
Accounts receivable, net of allowance of $0 at June 30, 2018 and December 31, 2017 | 99,970 | 103,677 |
Restricted cash | 10,006 | 12,807 |
Prepaid expenses | 27,239 | 24,253 |
Other current assets | 11,736 | 8,837 |
Total current assets | 541,130 | 830,950 |
Goodwill | 949,258 | 730,464 |
Intangible assets, net | 137,172 | 64,258 |
Property and equipment, net | 264,245 | 266,589 |
Restricted cash | 25,000 | 20,000 |
Prepaid expenses | 21,794 | 23,821 |
Other non-current assets | 47,274 | 43,251 |
Total assets | 1,985,873 | 1,979,333 |
Current liabilities: | ||
Accounts payable | 11,628 | 18,938 |
Income tax payable | 1,914 | 6,677 |
Deferred revenue | 156,316 | 134,007 |
Other current liabilities | 99,825 | 123,089 |
Total current liabilities | 269,683 | 282,711 |
Deferred revenue | 2,359 | 568 |
Deferred tax liabilities, net | 20,998 | 5,902 |
Other non-current liabilities | 93,239 | 48,912 |
Total liabilities | 386,279 | 338,093 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid in capital - authorized shares: 2,020,517; shares outstanding: 860,181 shares (Class A) as of June 30, 2018 and 870,660 (Class A, 783,376, Class B, 66,767, Class C, 20,517) as of December 31, 2017 | 3,462,142 | 3,426,505 |
Accumulated other comprehensive income (loss) | (100,111) | (93,497) |
Accumulated deficit | (1,762,437) | (1,691,768) |
Total stockholders’ equity | 1,599,594 | 1,641,240 |
Total liabilities and stockholders’ equity | $ 1,985,873 | $ 1,979,333 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 860,181,000 | 870,660,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 860,181,000 | 783,376,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 66,767,000 | |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 217,045 | $ 209,231 | $ 425,277 | $ 403,515 |
Costs and expenses: | ||||
Cost of revenue | 74,182 | 64,172 | 143,224 | 129,049 |
Research and development | 67,391 | 64,615 | 128,216 | 133,817 |
Sales and marketing | 52,878 | 51,201 | 103,733 | 97,821 |
General and administrative | 25,580 | 23,551 | 48,833 | 46,116 |
Total costs and expenses | 220,031 | 203,539 | 424,006 | 406,803 |
Income (loss) from operations | (2,986) | 5,692 | 1,271 | (3,288) |
Interest income | 1,800 | 1,109 | 3,610 | 2,046 |
Other income (expense), net | 2,605 | 1,614 | 6,006 | 3,050 |
Income (loss) before income taxes | 1,419 | 8,415 | 10,887 | 1,808 |
Provision for (benefit from) income taxes | 2,330 | 3,322 | 6,189 | 6,189 |
Net income (loss) | $ (911) | $ 5,093 | $ 4,698 | $ (4,381) |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Diluted | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | ||||
Basic | 858,666 | 863,125 | 864,117 | 869,025 |
Diluted | 858,666 | 887,991 | 890,285 | 869,025 |
Online Game [Member] | ||||
Revenue: | ||||
Total revenue | $ 164,680 | $ 163,745 | $ 326,233 | $ 317,226 |
Advertising and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 52,365 | $ 45,486 | $ 99,044 | $ 86,289 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Partners Capital [Abstract] | ||||
Net income (loss) | $ (911) | $ 5,093 | $ 4,698 | $ (4,381) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (29,855) | 11,508 | (6,721) | 16,989 |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities, net of tax | 134 | (4) | 107 | 19 |
Other comprehensive income (loss), net of tax | (29,721) | 11,504 | (6,614) | 17,008 |
Comprehensive income (loss) | $ (30,632) | $ 16,597 | $ (1,916) | $ 12,627 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | |||
Cash flows from operating activities: | ||||
Net income (loss) | $ 4,698 | $ (4,381) | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 16,909 | 16,279 | [1] | |
Stock-based compensation expense | 31,482 | 33,758 | [1] | |
(Gain) loss from foreign currency, sales of investments, assets and other, net | 1,491 | (184) | [1] | |
(Accretion) and amortization on marketable debt securities, net | (1,300) | |||
Change in deferred income taxes and other | 1,273 | 2,268 | [1] | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 14,009 | (7,968) | [1] | |
Other assets | (7,223) | (2,594) | [1] | |
Accounts payable | (16,261) | (8,341) | [1] | |
Deferred revenue | 28,126 | 13,021 | [1] | |
Income tax payable | (5,042) | 2,749 | [1] | |
Other liabilities | (30,974) | (11,698) | [1] | |
Net cash provided by (used in) operating activities | 37,188 | 32,909 | [1] | |
Cash flows from investing activities: | ||||
Purchases of short-term investments | (184,089) | |||
Maturities of short-term investments | 302,000 | |||
Sales of short-term investments | 9,999 | |||
Acquisition of property and equipment | (3,679) | (4,141) | [1] | |
Proceeds from sale of property and equipment | 28 | 148 | [1] | |
Business acquisitions, net of cash acquired and restricted cash held in escrow | (222,075) | (27,581) | [1] | |
Release of restricted cash escrow from business combinations | (22,800) | |||
Other investing activities, net | 97 | (7,225) | [1] | |
Net cash provided by (used in) investing activities | (120,519) | (38,799) | [1] | |
Cash flows from financing activities: | ||||
Taxes paid related to net share settlement of stockholders' equity awards | (13,972) | (9,423) | [1] | |
Repurchases of common stock | (65,418) | (96,924) | [1] | |
Proceeds from issuance of common stock | 4,158 | 4,017 | [1] | |
Acquisition-related contingent consideration payment | [1] | (5,115) | ||
Net cash provided by (used in) financing activities | (75,232) | (107,445) | [1] | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,931) | 2,026 | [1] | |
Net change in cash, cash equivalents and restricted cash | (160,494) | (111,309) | [1] | |
Cash, cash equivalents and restricted cash, beginning of period | 405,677 | 861,716 | [1] | |
Cash, cash equivalents and restricted cash, end of period | 245,183 | 750,407 | [1] | |
Supplemental cash flow information: | ||||
Income taxes paid | $ 10,261 | $ 434 | [1] | |
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the interim consolidated financial statements for further discussion on the adoption. |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 substantially all of our revenue through the sale of in-game virtual items 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, Asia and Europe. We completed our initial public offering in December 2011 and our Class A common stock is listed on the NASDAQ Global Select Market under the symbol “ZNGA.” Basis of Presentation and Consolidation The accompanying interim 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 the Company and its 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, 2017. Unaudited Interim Financial Information The accompanying interim consolidated balance sheets as of June 30, 2018 and December 31, 2017, the interim consolidated statements of operations and statements of comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017, the statements of cash flows for the six months ended June 30, 2018 and the notes to interim consolidated financial statements are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited interim consolidated 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, 2018 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 interim consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets, and long-lived assets. Actual results could differ materially from those estimates. For the three and six months ended June 30, 2018, we recognized $0.5 million and $0.9 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation. This change in estimate did not impact our reported earnings per share in three months ended June 30, 2018 but had a $0.01 per share impact on our reported earnings per share in the six months ended June 30, 2018. For the three and six months ended June 30, 2017, there were no discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods. Further, for the three and six months ended June 30, 2018 and 2017, there were no changes in our estimated average playing period of payers of durable virtual items that required adjusting the recognition period of deferred revenue generated in prior periods. Recent Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” “Leases (Topic 842) – Targeted Improvements,” The Company will adopt on January 1, 2019 and expects adoption of this new standard to increase reported assets and liabilities, specifically with respect to leased office facilities, at a minimum. We are, however, continuing to assess the full impact on our consolidated financial statements, which includes changes to our processes and controls and review of existing lease arrangements. Issued And Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” 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. Later, 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. Our restricted cash primarily consists of funds held in escrow in accordance with the terms of our business acquisition agreements. The restrictions release based upon the satisfaction of required milestones or lapse of defined time periods. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017. On January 1, 2018, we adopted both standards using the retrospective transition approach and there was no impact upon adoption of ASU 2016-15. As a result of adopting ASU 2016-18, the primary impact to the consolidated statement of cash flows relates to cash flows provided by (used in) investing and financing activities. Specifically, our business acquisitions typically involve restricted cash held in escrow at the date of acquisition which is later released. These transactions are now reflected in investing activities. Further, certain acquisition related contingent consideration payments involve restricted cash, the payment of which is reflected in financing activities. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business,” Revenue Recognition Note: Refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 10-K for the year ended December 31, 2017 for our revenue recognition accounting policy as it relates to revenue transactions prior to January 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with ASC Topic 606. We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated life of the paying player or until it is consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. We expense the related platform and payment processing fees as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as either consumable or durable. • Consumable virtual items represent goods that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately (e.g. chips in Zynga Poker • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 • If we do not have the ability to differentiate between revenue attributable to consumable virtual items versus durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. For advertising transactions not placed directly with the advertiser, the transaction price is equal to the amount collected, which is generally based on our revenue share stated in the contract for the advertising inventory. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display ads, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, similar to online game revenue, or over the term of the advertising arrangement, depending on the nature of the agreement. Arrangements with Multiple Performance Obligations. For arrangements with multiple performance obligations, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation, which is based on the standalone selling price. The standalone selling price represents the observable price which we would sell the advertising placement separately in a similar circumstance, to a similar customer. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers On January 1, 2018, we adopted ASC Topic 606 using the modified retrospective transition method applied to contracts that were not complete as of the adoption date. Consolidated financial results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts continue to be reported in accordance with ASC Topic 605, “Revenue Recognition” As of January 1, 2018, we recorded a net reduction of $4.0 million to our opening deferred revenue and accumulated deficit balances, net of tax, due to the cumulative impact of adopting ASC Topic 606. The impact was driven by the recognition of revenue for certain advertising arrangements for which revenue was not previously recognized until payment was certain, partially offset by the deferral of previously recognized revenue for a symbolic license arrangement, for which revenue is recognized over the term of the license under ASC Topic 606. The impact of adopting ASC Topic 606 on our consolidated balance sheet as of June 30, 2018 was as follows (in thousands): As of June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Current liabilities: Deferred revenue $ 156,316 $ 164,930 $ (8,614 ) Total current liabilities 269,683 278,297 (8,614 ) Deferred revenue 2,359 1,708 651 Total liabilities 386,279 394,242 (7,963 ) Accumulated deficit (1,762,437 ) (1,770,400 ) 7,963 Total stockholders' equity 1,599,594 1,591,631 7,963 Total liabilities and stockholders' equity $ 1,985,873 $ 1,985,873 $ — As a result of adopting ASC Topic 606, deferred revenue as of June 30, 2018 decreased from certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605, partially offset by an increase to deferred revenue associated with the deferral of previously recognized revenue from the aforementioned symbolic license arrangement. The increase to our accumulated deficit as of June 30, 2018 from adopting ASC Topic 606 is the result of the net income impact discussed below and the $4.0 million transition adjustment recognized upon adoption of ASC Topic 606 on January 1, 2018. The impact of adopting ASC Topic 606 on our consolidated statement of operations three and six months ended June 30, 2018 was as follows (in thousands): Three Months Ended June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 52,365 $ 49,363 $ 3,002 Total revenue 217,045 214,043 3,002 Income (loss) from operations (2,986 ) (5,988 ) 3,002 Income (loss) before taxes 1,419 (1,583 ) 3,002 Net income (loss) $ (911 ) $ (3,913 ) $ 3,002 Net income (loss) per share attributable to common stockholders: Basic $ (0.00 ) $ (0.00 ) $ 0.00 Diluted $ (0.00 ) $ (0.00 ) $ 0.00 Six Months Ended June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 99,044 $ 95,104 $ 3,940 Total revenue 425,277 421,337 3,940 Income (loss) from operations 1,271 (2,669 ) 3,940 Income (loss) before taxes 10,887 6,947 3,940 Net income (loss) $ 4,698 $ 758 $ 3,940 Net income (loss) per share attributable to common stockholders: Basic $ 0.01 $ 0.00 $ 0.01 Diluted $ 0.01 $ 0.00 $ 0.01 As a result of adopting ASC Topic 606 during the three and six months ended June 30, 2018, advertising and other revenue increased primarily as a result of the aforementioned recognition of revenue for certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605 and the recognition of revenue over time from the symbolic license. There was no impact to net cash flows provided by (used in) operating, investing or financing activities for the six months ended June 30, 2018 as a result of adopting ASC Topic 606. However, within cash flows from operating activities, net income (loss) is $3.9 million higher and the change in deferred revenue is $3.9 million lower as a result of adopting ASC Topic 606 during the six months ended June 30, 2018. Disaggregation of Revenue The following table presents our revenue disaggregated by platform (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 (1) 2018 2017 (1) Online game: Mobile $ 143,026 $ 139,250 $ 282,856 $ 266,489 Web 21,654 24,495 43,377 50,737 Online game total $ 164,680 $ 163,745 $ 326,233 $ 317,226 Advertising and other: Mobile 49,718 40,618 92,489 74,992 Web 2,528 3,825 4,582 9,505 Other 119 1,043 1,973 1,792 Advertising and other total $ 52,365 $ 45,486 $ 99,044 $ 86,289 Total revenue $ 217,045 $ 209,231 $ 425,277 $ 403,515 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 (1) 2018 2017 (1) United States $ 142,541 $ 139,768 $ 278,537 $ 267,973 All other countries (2) 74,504 69,463 146,740 135,542 Total revenue $ 217,045 $ 209,231 $ 425,277 $ 403,515 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. (2) No foreign country exceeded 10% of our total revenue for any periods presented. Consumable virtual items accounted for 47% of online game revenue in the three months ended June 30, 2018 and 43% of online game revenue in the same period of the prior year. Durable virtual items accounted for 53% of online game revenue in the three months ended June 30, 2018 and 57% of online game revenue in the same period of the prior year. The estimated weighted average life of durable virtual items was 9 months in the three months ended June 30, 2018, compared to 8 months in the same period of the prior year. Consumable virtual items accounted for 46% of online game revenue in the six months ended June 30, 2018 and 45% of online game revenue in the same period of the prior year. Durable virtual items accounted for 54% of online game revenue in the six months ended June 30, 2018 and 55% of online game revenue in the same period of the prior year. The estimated weighted average life of durable virtual items was 9 months for both the six months ended June 30, 2018 and 2017. Contract Balances We receive payments from our customers based on the payment terms established in our contracts. Payments for online game revenue are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. Such payments are initially recorded to deferred revenue, as the player has no right of return after the purchase, consistent with our standard terms of service. Deferred revenue is recognized into revenue as we satisfy our performance obligations. Payments for advertising arrangements are due based on the contractually stated payment terms. For advertising arrangements, the contract terms generally require payment within 30 to 60 days subsequent to the end of the month. Our right to payment from the customer is unconditional and therefore recorded as accounts receivable. During the three and six months ended June 30, 2018, we recognized $34.6 million and $118.2 million, respectively, of revenue that was included in the current deferred revenue balance on January 1, 2018. The decrease in accounts receivable, net during the six months ended June 30, 2018 was primarily driven by cash collections of current period and previously due amounts exceeding sales on account during the period, partially offset by an increase in accounts receivable of $10.7 million from our acquisition of Gram Games Teknoloji A.S (“Gram Games”) during the second quarter of 2018. The increase in deferred revenue during the six months ended June 30, 2018 was primarily driven by the sale of virtual items during the period, which includes contribution from Gram Games, exceeding revenue recognized from the satisfaction of our performance obligations. Unsatisfied Performance Obligations Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Marketable Securities | 3. Marketable Securities The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 182,073 $ — $ (71 ) $ 182,002 Total $ 182,073 $ — $ (71 ) $ 182,002 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) $ 308,506 Total $ 308,684 $ — $ (178 ) $ 308,506 All of our short-term investments have contractual maturities of one year or less as of June 30, 2018. Changes in market interest rates and bond yields cause our short-term investments to fall below their cost basis, resulting in unrealized losses. As of June 30, 2018, we had unrealized losses of $0.1 million related to short-term investments that had a fair value of $56.9 million. None of these securities were in a material continuous unrealized loss position for more than 12 months. As of June 30, 2018, we did not consider any of our short-term investments to be other-than-temporarily impaired. We do not intend to sell, nor do we believe it is more likely than not that we will be required to sell, any of the securities in an unrealized loss position. When evaluating our investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer, our ability and intent to hold the security to maturity and whether it is more likely than not that we will be required to sell the investment before recovery of the amortized cost basis. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Our financial assets consist of cash equivalents, short-term investments and accounts receivable. Cash equivalents and short-term investments, which consist of money market funds and corporate debt securities, are reported at fair value. Accounts receivable, net is stated at its net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, which are stated at the invoiced or estimated payout amount, respectively, which approximates fair value, as well as contingent consideration obligations as a result of business acquisitions, which are reported at fair value. As of June 30, 2018, our contingent consideration obligation represents the estimated fair value of the additional consideration payable in connection with our acquisition of PuzzleSocial, Inc. (“PuzzleSocial”) in the third quarter of 2016 and Gram Games in the second quarter of 2018. With respect to the PuzzleSocial acquisition, we estimated the acquisition date fair value of the contingent consideration obligation using discounted cash flow models, and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the respective obligation. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration obligation were forecasted future cash flows, the timing of those cash flows and the risk-adjusted discount rate. During the second quarter of 2017, it was determined the future performance would not meet the required performance targets. As of June 30, 2018, we continue to expect that the future performance will not meet the required performance targets for the acquisition. Accordingly, the estimated contingent consideration obligation remains at zero as of June 30, 2018. Under the terms of the Gram Games acquisition, contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. We estimated the acquisition date fair value of the contingent consideration obligation using a Monte Carlo simulation. The significant unobservable inputs used in the fair value measurement of the contingent consideration obligation were Gram Games’ projected performance, risk-adjusted discount rate and performance volatility similar to industry peers. Changes to projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future. At acquisition, the estimated fair value of the contingent consideration obligation was $43.5 million. However, as of June 30, 2018, the estimated fair value of the contingent consideration obligation increased to $45.0 million due to the increased probability of achievement, resulting in $1.5 million of expense recognized within research and development expense in our consolidated statement of operations for the three and six months ended June 30, 2018. 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. 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. The composition of our financial assets and liabilities as of June 30, 2018 and December 31, 2017 among the three levels of the fair value hierarchy are as follows (in thousands): June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 50,871 $ — $ — $ 50,871 Corporate debt securities — 24,900 — 24,900 Short-term investments: Corporate debt securities — 182,002 — 182,002 Total financial assets $ 50,871 $ 206,902 $ — $ 257,773 Liabilities: Contingent consideration $ — $ — $ 45,000 $ 45,000 December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,429 $ — $ 531,006 The following table presents the activity for the six months ended June 30, 2018 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2017 $ — Additions 43,500 Fair value adjustments 1,500 Contingent consideration obligation – June 30, 2018 $ 45,000 We had no transfers between valuation levels from December 31, 2017 to June 30, 2018. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, net Property and equipment, net consist of the following (in thousands): June 30, December 31, 2018 2017 Computer equipment $ 20,354 $ 21,583 Software 32,065 32,509 Land 89,130 89,130 Building and building improvements 200,139 199,070 Furniture and fixtures 10,467 10,376 Leasehold improvements 6,974 7,965 Total property and equipment, gross $ 359,129 $ 360,633 Less: Accumulated depreciation (94,884 ) (94,044 ) Total property and equipment, net $ 264,245 $ 266,589 The following represents our property and equipment, net by location (in thousands): June 30, December 31, 2018 2017 United States $ 260,433 $ 263,037 All other countries 3,812 3,552 Total property and equipment, net $ 264,245 $ 266,589 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions Gram Games Acquisition On May 25, 2018 we acquired a 100% equity interest in Gram Games, a mobile game developer to expand our hyper-casual and puzzle games portfolio, for total purchase consideration of $299.0 million. Of the total purchase consideration, $230.5 million was paid in cash on the acquisition date and $25.0 million is retained in escrow for a period of 18 months for general representations and warranties for total cash consideration of $255.5 million. The remaining purchase consideration relates to contingent consideration valued at $43.5 million as of the acquisition date (see Note 4 – “Fair Value Measurements” for further discussion on this estimate). The contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the acquisition date for a total of three years. We will record changes in the fair value of the contingent consideration obligation within our consolidated statement of operations in each future reporting period as they occur. Additionally, in connection with the transaction, the Company executed noncompetition agreements with the prior management owners of Gram Games for a term of three years following the acquisition date. However, the acquisition date estimated fair value of the noncompetition agreements was not material. The following table summarizes the acquisition date fair value of the tangible assets, liabilities assumed, intangible assets, contingent consideration and related goodwill acquired from Gram Games (in thousands, unaudited): Total Cash acquired $ 8,474 Accounts receivable, net acquired 10,747 Prepaid expenses acquired 279 Other current assets acquired 937 Intangible assets, net acquired: Developed technology, useful life of 5 years 43,000 Developed technology, useful life of 3 years 26,000 Trade names, useful life of 7 years 14,000 Trade names, useful life of 3 years 500 Goodwill 223,833 Property and equipment, net acquired 898 Other non-current assets acquired 329 Total assets acquired 328,997 Accounts payable assumed (8,874 ) Income tax payable assumed (502 ) Other current liabilities assumed (5,164 ) Deferred tax liabilities, net assumed (15,408 ) Total liabilities assumed (29,948 ) Total purchase price consideration $ 299,049 Non-current contingent consideration obligation (43,500 ) Total cash consideration $ 255,549 Certain amounts noted above are preliminary and subject to change during the respective measurement period (up to one year from the respective acquisition date) as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities assumed, identifiable intangible assets, income and non-income based taxes and residual goodwill. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The weighted average amortization period of the acquired intangible assets is 4.7 years at acquisition. Transactions costs incurred by the Company in connection with the Gram Games acquisition, including professional fees, were $1.3 million and were recorded within general and administrative expenses in our consolidated statements of operations for the three and six months ended June 30, 2018. The results of operations from Gram Games have been included in our consolidated statement of operations since the date of acquisition. Pro forma results of operations have not been presented as they are not material to our consolidated statements of operations for the three and six months ended June 30, 2018. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 7. Goodwill and Intangible Assets, net The following table presents the changes to goodwill for the six months ended June 30, 2018 (in thousands): Goodwill – December 31, 2017 (1) $ 730,464 Additions 223,833 Foreign currency translation adjustments (2) (5,039 ) Goodwill – June 30, 2018 (1) $ 949,258 (1) There are no accumulated impairments losses at the beginning or end of any period presented. (2) The decrease is primarily related to translation gains 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, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Gross Value Accumulated Amortization Net Book Developed technology $ 266,239 $ (154,935 ) $ 111,304 Trademarks, branding and domain names 32,772 (10,470 ) 22,302 Noncompetition agreements 8,390 (5,093 ) 3,297 Acquired lease intangibles 5,708 (5,439 ) 269 Total $ 313,109 $ (175,937 ) $ 137,172 December 31, 2017 Gross Value Accumulated Amortization Net Book Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of June 30, 2018 and December 31, 2017. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to intangible assets was $6.0 million and $10.6 million for the three and six months ended June 30, 2018, respectively. Comparatively, amortization expense related to intangible assets was $4.1 million and $9.5 million for the three and six months ended June 30, 2017, respectively. As of June 30, 2018, the weighted-average remaining useful lives of our acquired intangible assets are 4.0 years for developed technology, 6.8 years for trademarks, branding and domain names, 1.1 years for noncompetition agreements, 1.8 years for acquired lease intangibles and 4.3 years in total, for all acquired intangible assets. As of June 30, 2018, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2018 $ 18,542 2019 32,409 2020 31,149 2021 23,596 2022 16,368 Thereafter 8,988 Total $ 131,052 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes On December 22, 2017, the 2017 Tax Cuts and Jobs Act (“2017 Tax Act”) was enacted into law. Beginning January 1, 2018, the 2017 Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, created new taxes on certain foreign sourced earnings, repealed the Alternative Minimum Tax (“AMT”), and expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility, amongst other changes. During the fourth quarter of 2017, we recognized a provisional tax benefit of $5.0 million as a result of the 2017 Tax Act’s enactment, which was included as a component of the provision for income taxes, and primarily consisted of a $2.4 million income tax benefit in connection with re-measurement of certain deferred tax assets and liabilities and a $2.6 million income tax benefit in connection with the refundable AMT credit. Other provisional amounts recorded during the fourth quarter of 2017 related to the revised officer compensation rules and one-time transitional tax on foreign earnings and profits after 1986, which had no impact to the provision for income taxes because of an equal offset to the valuation allowance and overall accumulated earnings and profits deficit, respectively. During the three and six months ended June 30, 2018, there were no adjustments to the provisional amounts previously recorded during the fourth quarter of 2017. We continue to gather additional information necessary and await interpretative guidance from the Internal Revenue Service and United States Treasury, specifically as it relates to the global intangible low-taxed income (“GILTI”) and Base Erosion and Anti-Abuse Tax provisions of the 2017 Tax Act, to complete our accounting for these items within the prescribed measurement period. With respect to the GILTI provisions, companies may make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the entity is subject to the rules or (ii) account for GILTI in the entity’s measurement of deferred taxes. Our selection of an accounting policy will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, the impact that is expected. Whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on a number of aspects of our estimated future results of global operations, and as a result, we are not yet able to make our accounting policy election. Therefore, we have not recorded any deferred tax effects related to GILTI for the three and six months ended June 30, 2018. On a consolidated basis, the provision for income taxes decreased by $1.0 million in the three months ended June 30, 2018 as compared to the same period of the prior year. The decrease was primarily attributable to a benefit generated from the post-acquisition statutory operating loss from Gram Games, partially offset by changes in our jurisdictional mix of earnings. The fluctuation of the provision for income taxes for the six months ended June 30, 2018 as compared to the same period of the prior year was flat due to a benefit generated from the post-acquisition statutory operating loss from Gram Games, offset by changes in our jurisdictional mix of earnings. |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 9. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Accrued accounts payable $ 22,879 $ 38,046 Accrued compensation liability 26,050 33,815 Accrued restructuring liability 3,617 3,674 Accrued payable from acquisitions 10,000 12,800 Accrued lease incentive obligation 24,895 20,059 Value-added taxes payable 3,538 3,453 Other current liabilities 8,846 11,242 Total other current liabilities $ 99,825 $ 123,089 Accrued compensation liability represents employee bonus and other payroll withholding expenses. Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and accrued vendor expenses. Other non-current liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Contingent consideration obligation $ 45,000 $ — Accrued payable from acquisitions 25,000 20,000 Accrued restructuring liability 9,269 10,856 Unrecognized tax liability 10,205 8,975 Accrued lease incentive obligation — 4,836 Other non-current liabilities 3,765 4,245 Total other non-current liabilities $ 93,239 $ 48,912 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 10. Restructuring We recorded the following net restructuring charges within our consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Cost of revenue $ — $ — $ 27 $ — Research and development (109 ) 1,265 78 333 General and administrative 509 157 766 244 Total restructuring charges $ 400 $ 1,422 $ 871 $ 577 Restructuring activities, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q2 2015 Other Restructuring Plan Restructuring Plan Restructuring Plans Total Restructuring liability – December 31, 2017 $ 371 $ 14,152 $ 7 $ 14,530 Restructuring expense and adjustments 770 76 25 871 Cash payments (756 ) (1,727 ) (32 ) (2,515 ) Restructuring liability – June 30, 2018 $ 385 $ 12,501 $ — $ 12,886 Cumulative costs to date, as of June 30, 2018 $ 2,236 $ 34,400 $ 2,195 $ 38,831 Total costs expected to be incurred, as of June 30, 2018 $ 2,252 $ 34,400 $ 2,195 $ 38,847 Q4 2017 Restructuring Plan During the fourth 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 this restructuring plan, we recorded $0.4 million and $0.8 million of expense during the three and six months ended June 30, 2018, respectively, which is included in operating expenses in our consolidated statement of operations. The $0.4 million restructuring charge for the three months ended June 30, 2018 is comprised of $0.1 million of employee severance costs and $0.3 million of other costs and the $0.8 million restructuring charge for the six months ended June 30, 2018 is comprised of $0.3 million of employee severance costs and $0.5 million of other costs. The remaining costs are expected to be paid out within the next quarter. Q2 2015 Restructuring Plan 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 this restructuring plan, we recorded $0.1 million of other costs during the three and six months ended June 30, 2018, which is included in operating expenses in our consolidated statement of operations. The remaining liability is expected to be paid out over the next 3.9 years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity We recorded stock-based compensation expense related to grants of employee stock options, restricted stock units (“ZSUs”) and performance-based awards in our consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 564 $ 371 $ 995 $ 990 Research and development 10,363 10,483 18,988 22,196 Sales and marketing 2,214 1,751 4,050 3,538 General and administrative 4,228 3,627 7,449 7,034 Total stock-based compensation expense $ 17,369 $ 16,232 $ 31,482 $ 33,758 The following table shows stock option activity for the six months ended June 30, 2018 (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, 2017 32,964 $ 2.07 $ 64,114 6.32 Granted 6,122 3.48 Forfeited, expired and cancelled (217 ) 3.77 Exercised (593 ) 1.65 Balance as of June 30, 2018 38,276 $ 2.29 $ 68,360 6.48 The following table presents the weighted-average grant date fair value and the related assumptions used to estimate the fair value of our stock options: Three and Six Months Ended June 30, 2018 Expected term, in years 6 Risk-free interest rates 2.70 % Expected volatility 44 % Dividend yield — Weighted-average estimated fair value of options granted $ 1.60 The following table shows a summary of ZSU activity for the six months ended June 30, 2018 (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, 2017 45,478 $ 3.00 $ 181,912 Granted 27,858 3.85 Vested (9,292 ) 2.95 Forfeited (4,857 ) 3.13 Unvested as of June 30, 2018 59,187 $ 3.40 $ 240,891 Stock Repurchases In November 2016, we announced that our Board of Directors authorized a share repurchase program allowing us to repurchase up to $200.0 million of our outstanding shares of Class A common stock (“2016 Share Repurchase Program”). In 2017, we repurchased 36.3 million shares for our Class A common stock under the repurchase program at a weighted average price of $2.78 per share for a total of $101.0 million. During the three months ended June 30, 2018, we repurchased 6.9 million shares of our Class A common stock under the repurchase program at a weighted average price of $3.51 per share for a total of $24.2 million and during the six months ended June 30, 2018, we repurchased 18.2 million shares of our Class A common stock under the repurchase program at a weighted average price of $3.59 per share for a total of $65.4 million, completing the 2016 Share Repurchase Program. All of our stock repurchases were made through open market purchases under Rule 10b5-1 plans and subsequently retired. In April 2018, a new share repurchase program was authorized for up to $200.0 million of our outstanding Class A common stock. The timing and amount of any stock repurchases will be determined based on market conditions, share price and other factors. The program does not require us to repurchase any specific number of shares of our Class A common stock and may be modified, suspended or terminated at any time without notice. The stock repurchase program will be funded from existing cash on hand or other sources of funding as the Company may determine to be appropriate. Share repurchases under these authorizations may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 plans or by any combination of such methods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2018 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities Total Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) Other comprehensive income (loss) before reclassifications (6,721 ) 107 (6,614 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (6,721 ) 107 (6,614 ) Balance as of June 30, 2018 $ (100,040 ) $ (71 ) $ (100,111 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 13. Net Income (Loss) Per Share of Common Stock On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. Accordingly, beginning in the second quarter of 2018, the Company calculated basic and dilutive net income (loss) per share under a single-class method. Prior to the conversion noted above, we computed net income (loss) per share of common stock using the two-class method required for participating securities and multiple classes of common stock. Prior to the date of the initial public offering, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Additionally, we considered shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities, because the holders of such shares have non-forfeitable dividend rights in the event we declare a dividend for common shares. In accordance with the two-class method, net income allocated to these participating securities, which include participation rights in undistributed net income, is subtracted from net income (loss) to determine total net income (loss) to be allocated to common stockholders. 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. 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. In computing diluted net income (loss) per share, net income (loss) attributable to common shareholders is re-allocated to reflect the potential impact of dilutive securities, including stock options, unvested ZSUs, unvested performance-based ZSUs and ESPP withholdings. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include dilutive securities in our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. The following tables set 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, Six Months Ended June 30, 2018 2018 Class Class A (1) A (1) BASIC: Net income (loss) attributable to common stockholders – basic $ (911 ) $ 4,698 Weighted-average common shares outstanding – basic 858,666 864,117 Net income (loss) per share attributable to common stockholders – basic $ (0.00 ) $ 0.01 DILUTED: Net income (loss) attributable to common stockholders – basic $ (911 ) $ 4,698 Weighted-average common shares outstanding – basic 858,666 864,117 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan — 10,803 ZSUs — 14,093 Performance-based ZSUs — 1,272 Weighted-average common shares outstanding – diluted 858,666 890,285 Net income (loss) per share attributable to common stockholders – diluted $ (0.00 ) $ 0.01 (1) The net income (loss) per share calculations for the three and six months ended June 30, 2018 are presented as if the one-for-one class conversion occurred as of the beginning of the respective period. Three Months Ended June 30, Six Months Ended June 30, 2017 2017 Class Class Class Class Class Class A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 4,565 $ 407 $ 121 $ (3,896 ) $ (382 ) $ (103 ) Weighted-average common shares outstanding – basic 773,704 68,904 20,517 772,679 75,289 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 4,565 $ 407 $ 121 $ (3,896 ) $ (382 ) $ (103 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 121 — — (103 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 407 — — (382 ) — — Reallocation of net income (loss) to Class B and Class C shares — — — — — — Net income (loss) attributable to common stockholders – diluted $ 5,093 $ 407 $ 121 $ (4,381 ) $ (382 ) $ (103 ) Weighted-average common shares outstanding – basic 773,704 68,904 20,517 772,679 75,289 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 — — 75,829 — — 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 20,517 869,025 75,289 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) 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, 2018 2017 2018 2017 Stock options and employee stock purchase plan 38,278 16,827 9,737 35,138 Restricted shares — — — 1,062 ZSUs 53,536 2,770 2,720 49,263 Total 91,814 19,597 12,457 85,463 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Leases | 14. Leases Rental Income The Company owns the building where its San Francisco headquarters is located and leases available office space to other tenants. One tenant will occupy approximately 43% of the building with a lease term concluding in February 2027. The agreement provides for total minimum rental payments of $167.3 million with escalating rent payments and various lease incentives to be straight-lined over the lease term. The monthly rental income, net of the lease incentives and amortization of the lease origination costs, is recorded within other income and expense, net in the consolidated statement of operations. As of June 30, 2018, the Company has a current lease incentive obligation of $24.9 million related to tenant improvements for this lease. As of June 30, 2018, the remaining cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: Remaining 2018 $ 4,612 2019 11,345 2020 14,369 2021 20,287 2022 20,896 Thereafter 93,982 Total $ 165,491 The Company has other lease and sub-lease arrangements for its owned or leased office facilities, however, the amounts are not material to the consolidated financial statements. Lease Commitments We have entered into operating leases primarily for office facilities. As of June 30, 2018, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: Remaining 2018 $ 4,196 2019 8,421 2020 6,292 2021 5,282 2022 1,548 Thereafter — Total $ 25,739 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies The amounts represented in the tables below reflect our minimum cash obligations for the respective calendar years based on contractual terms, but not necessarily the periods in which these costs will be expensed in the Company’s consolidated statement of operations. Licensor and Marketing Commitments We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of June 30, 2018, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: Remaining 2018 $ 9,112 2019 19,500 2020 32,750 Thereafter — Total $ 61,362 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of June 30, 2018, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2018 $ 6,959 2019 3,731 2020 674 Thereafter — Total $ 11,364 Legal Matters The Company is 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 the Company believes that a loss arising from such matters is probable and can be reasonably estimated, the Company accrues the estimated liability in its financial statements. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in its judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues 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, the Company discloses such an estimate, if material. If such a loss or range of losses is not reasonably estimable, the Company discloses that fact. In assessing the materiality of a proceeding, the Company evaluates, 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 changes to business practices in a manner that could have a material adverse impact on the Company’s business. Legal expenses are recognized 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 the Company’s initial public offering in December 2011 and the Company’s 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. On December 9, 2014, the defendants filed a motion to stay or dismiss the action. The court held a hearing on defendants’ motion on November 17, 2015, and on February 29, 2016, the court granted the Company’s motion to dismiss. On March 29, 2016, plaintiff filed a notice of appeal of the court’s order dismissing the action. On December 5, 2016, the Delaware Supreme Court reversed the Court of Chancery’s dismissal and remanded the case for further proceedings. On June 7, 2017, the court endorsed a stipulation among the parties staying the action through July 31, 2017, in light of the Company’s formation of a Special Litigation Committee, as noted below. On July 18, 2017, the court endorsed a stipulation among the parties continuing the stay in the action through September 7, 2017. On September 11, 2017, the court endorsed a stipulation among the parties continuing the stay in the action through October 31, 2017. Subsequently, on January 5, 2018, the Special Litigation Committee, acting on behalf of the Company, filed a supplemental motion to stay the action until February 20, 2018, to allow the parties to engage in settlement negotiation. On February 3, 2017, On March 1, 2018, the Special Litigation Committee (on behalf of the Company) and the Sandys 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, the Company 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 the Company’s business practices, which could result in additional costs or a loss of revenue and could otherwise harm the Company’s business. Although the results of such litigation cannot be predicted with certainty, the Company believes that the amount or range of reasonably possible losses related to such pending or threatened litigation will not have a material adverse effect on its business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. |
Overview and Summary of Signi22
Overview and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying interim 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 the Company and its 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, 2017. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim consolidated balance sheets as of June 30, 2018 and December 31, 2017, the interim consolidated statements of operations and statements of comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017, the statements of cash flows for the six months ended June 30, 2018 and the notes to interim consolidated financial statements are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited interim consolidated 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, 2018 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 interim consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets, and long-lived assets. Actual results could differ materially from those estimates. For the three and six months ended June 30, 2018, we recognized $0.5 million and $0.9 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation. This change in estimate did not impact our reported earnings per share in three months ended June 30, 2018 but had a $0.01 per share impact on our reported earnings per share in the six months ended June 30, 2018. For the three and six months ended June 30, 2017, there were no discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods. Further, for the three and six months ended June 30, 2018 and 2017, there were no changes in our estimated average playing period of payers of durable virtual items that required adjusting the recognition period of deferred revenue generated in prior periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” “Leases (Topic 842) – Targeted Improvements,” The Company will adopt on January 1, 2019 and expects adoption of this new standard to increase reported assets and liabilities, specifically with respect to leased office facilities, at a minimum. We are, however, continuing to assess the full impact on our consolidated financial statements, which includes changes to our processes and controls and review of existing lease arrangements. Issued And Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” 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. Later, 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. Our restricted cash primarily consists of funds held in escrow in accordance with the terms of our business acquisition agreements. The restrictions release based upon the satisfaction of required milestones or lapse of defined time periods. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017. On January 1, 2018, we adopted both standards using the retrospective transition approach and there was no impact upon adoption of ASU 2016-15. As a result of adopting ASU 2016-18, the primary impact to the consolidated statement of cash flows relates to cash flows provided by (used in) investing and financing activities. Specifically, our business acquisitions typically involve restricted cash held in escrow at the date of acquisition which is later released. These transactions are now reflected in investing activities. Further, certain acquisition related contingent consideration payments involve restricted cash, the payment of which is reflected in financing activities. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business,” |
Revenue Recognition | Revenue Recognition Note: Refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 10-K for the year ended December 31, 2017 for our revenue recognition accounting policy as it relates to revenue transactions prior to January 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with ASC Topic 606. We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated life of the paying player or until it is consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. We expense the related platform and payment processing fees as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as either consumable or durable. • Consumable virtual items represent goods that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately (e.g. chips in Zynga Poker • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 • If we do not have the ability to differentiate between revenue attributable to consumable virtual items versus durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. For advertising transactions not placed directly with the advertiser, the transaction price is equal to the amount collected, which is generally based on our revenue share stated in the contract for the advertising inventory. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display ads, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, similar to online game revenue, or over the term of the advertising arrangement, depending on the nature of the agreement. Arrangements with Multiple Performance Obligations. For arrangements with multiple performance obligations, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation, which is based on the standalone selling price. The standalone selling price represents the observable price which we would sell the advertising placement separately in a similar circumstance, to a similar customer. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. |
Acquisition Related Contingent Consideration / Fair Value Measures Liabilities | With respect to the PuzzleSocial acquisition, we estimated the acquisition date fair value of the contingent consideration obligation using discounted cash flow models, and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the respective obligation. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration obligation were forecasted future cash flows, the timing of those cash flows and the risk-adjusted discount rate. During the second quarter of 2017, it was determined the future performance would not meet the required performance targets. As of June 30, 2018, we continue to expect that the future performance will not meet the required performance targets for the acquisition. Accordingly, the estimated contingent consideration obligation remains at zero as of June 30, 2018. Under the terms of the Gram Games acquisition, contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. We estimated the acquisition date fair value of the contingent consideration obligation using a Monte Carlo simulation. The significant unobservable inputs used in the fair value measurement of the contingent consideration obligation were Gram Games’ projected performance, risk-adjusted discount rate and performance volatility similar to industry peers. Changes to projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future. At acquisition, the estimated fair value of the contingent consideration obligation was $43.5 million. However, as of June 30, 2018, the estimated fair value of the contingent consideration obligation increased to $45.0 million due to the increased probability of achievement, resulting in $1.5 million of expense recognized within research and development expense in our consolidated statement of operations for the three and six months ended June 30, 2018. |
Fair Value Measurements Investment | 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. 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. |
Earnings Per Share | On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. Accordingly, beginning in the second quarter of 2018, the Company calculated basic and dilutive net income (loss) per share under a single-class method. Prior to the conversion noted above, we computed net income (loss) per share of common stock using the two-class method required for participating securities and multiple classes of common stock. Prior to the date of the initial public offering, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Additionally, we considered shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities, because the holders of such shares have non-forfeitable dividend rights in the event we declare a dividend for common shares. In accordance with the two-class method, net income allocated to these participating securities, which include participation rights in undistributed net income, is subtracted from net income (loss) to determine total net income (loss) to be allocated to common stockholders. 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. 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. In computing diluted net income (loss) per share, net income (loss) attributable to common shareholders is re-allocated to reflect the potential impact of dilutive securities, including stock options, unvested ZSUs, unvested performance-based ZSUs and ESPP withholdings. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include dilutive securities in our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. |
Leases Income | agreement provides for total minimum rental payments of $167.3 million with escalating rent payments and various lease incentives to be straight-lined over the lease term |
Legal Contingencies | The Company is 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 the Company believes that a loss arising from such matters is probable and can be reasonably estimated, the Company accrues the estimated liability in its financial statements. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in its judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues 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, the Company discloses such an estimate, if material. If such a loss or range of losses is not reasonably estimable, the Company discloses that fact. In assessing the materiality of a proceeding, the Company evaluates, 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 changes to business practices in a manner that could have a material adverse impact on the Company’s business. |
Legal expenses | Legal expenses are recognized as incurred. |
Revenue from Contracts with C23
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 (1) 2018 2017 (1) Online game: Mobile $ 143,026 $ 139,250 $ 282,856 $ 266,489 Web 21,654 24,495 43,377 50,737 Online game total $ 164,680 $ 163,745 $ 326,233 $ 317,226 Advertising and other: Mobile 49,718 40,618 92,489 74,992 Web 2,528 3,825 4,582 9,505 Other 119 1,043 1,973 1,792 Advertising and other total $ 52,365 $ 45,486 $ 99,044 $ 86,289 Total revenue $ 217,045 $ 209,231 $ 425,277 $ 403,515 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 (1) 2018 2017 (1) United States $ 142,541 $ 139,768 $ 278,537 $ 267,973 All other countries (2) 74,504 69,463 146,740 135,542 Total revenue $ 217,045 $ 209,231 $ 425,277 $ 403,515 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. (2) No foreign country exceeded 10% of our total revenue for any periods presented. |
ASC Topic 606 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Summary of Impact of Adoption of Accounting Standards | The impact of adopting ASC Topic 606 on our consolidated balance sheet as of June 30, 2018 was as follows (in thousands): As of June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Current liabilities: Deferred revenue $ 156,316 $ 164,930 $ (8,614 ) Total current liabilities 269,683 278,297 (8,614 ) Deferred revenue 2,359 1,708 651 Total liabilities 386,279 394,242 (7,963 ) Accumulated deficit (1,762,437 ) (1,770,400 ) 7,963 Total stockholders' equity 1,599,594 1,591,631 7,963 Total liabilities and stockholders' equity $ 1,985,873 $ 1,985,873 $ — As a result of adopting ASC Topic 606, deferred revenue as of June 30, 2018 decreased from certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605, partially offset by an increase to deferred revenue associated with the deferral of previously recognized revenue from the aforementioned symbolic license arrangement. The increase to our accumulated deficit as of June 30, 2018 from adopting ASC Topic 606 is the result of the net income impact discussed below and the $4.0 million transition adjustment recognized upon adoption of ASC Topic 606 on January 1, 2018. The impact of adopting ASC Topic 606 on our consolidated statement of operations three and six months ended June 30, 2018 was as follows (in thousands): Three Months Ended June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 52,365 $ 49,363 $ 3,002 Total revenue 217,045 214,043 3,002 Income (loss) from operations (2,986 ) (5,988 ) 3,002 Income (loss) before taxes 1,419 (1,583 ) 3,002 Net income (loss) $ (911 ) $ (3,913 ) $ 3,002 Net income (loss) per share attributable to common stockholders: Basic $ (0.00 ) $ (0.00 ) $ 0.00 Diluted $ (0.00 ) $ (0.00 ) $ 0.00 Six Months Ended June 30, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 99,044 $ 95,104 $ 3,940 Total revenue 425,277 421,337 3,940 Income (loss) from operations 1,271 (2,669 ) 3,940 Income (loss) before taxes 10,887 6,947 3,940 Net income (loss) $ 4,698 $ 758 $ 3,940 Net income (loss) per share attributable to common stockholders: Basic $ 0.01 $ 0.00 $ 0.01 Diluted $ 0.01 $ 0.00 $ 0.01 As a result of adopting ASC Topic 606 during the three and six months ended June 30, 2018, advertising and other revenue increased primarily as a result of the aforementioned recognition of revenue for certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605 and the recognition of revenue over time from the symbolic license. There was no impact to net cash flows provided by (used in) operating, investing or financing activities for the six months ended June 30, 2018 as a result of adopting ASC Topic 606. However, within cash flows from operating activities, net income (loss) is $3.9 million higher and the change in deferred revenue is $3.9 million lower as a result of adopting ASC Topic 606 during the six months ended June 30, 2018. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Short-Term Investments Securities | The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 182,073 $ — $ (71 ) $ 182,002 Total $ 182,073 $ — $ (71 ) $ 182,002 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) $ 308,506 Total $ 308,684 $ — $ (178 ) $ 308,506 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities as of June 30, 2018 and December 31, 2017 among the three levels of the fair value hierarchy are as follows (in thousands): June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 50,871 $ — $ — $ 50,871 Corporate debt securities — 24,900 — 24,900 Short-term investments: Corporate debt securities — 182,002 — 182,002 Total financial assets $ 50,871 $ 206,902 $ — $ 257,773 Liabilities: Contingent consideration $ — $ — $ 45,000 $ 45,000 December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,429 $ — $ 531,006 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the six months ended June 30, 2018 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2017 $ — Additions 43,500 Fair value adjustments 1,500 Contingent consideration obligation – June 30, 2018 $ 45,000 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): June 30, December 31, 2018 2017 Computer equipment $ 20,354 $ 21,583 Software 32,065 32,509 Land 89,130 89,130 Building and building improvements 200,139 199,070 Furniture and fixtures 10,467 10,376 Leasehold improvements 6,974 7,965 Total property and equipment, gross $ 359,129 $ 360,633 Less: Accumulated depreciation (94,884 ) (94,044 ) Total property and equipment, net $ 264,245 $ 266,589 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): June 30, December 31, 2018 2017 United States $ 260,433 $ 263,037 All other countries 3,812 3,552 Total property and equipment, net $ 264,245 $ 266,589 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the tangible assets, liabilities assumed, intangible assets, contingent consideration and related goodwill acquired from Gram Games (in thousands, unaudited): Total Cash acquired $ 8,474 Accounts receivable, net acquired 10,747 Prepaid expenses acquired 279 Other current assets acquired 937 Intangible assets, net acquired: Developed technology, useful life of 5 years 43,000 Developed technology, useful life of 3 years 26,000 Trade names, useful life of 7 years 14,000 Trade names, useful life of 3 years 500 Goodwill 223,833 Property and equipment, net acquired 898 Other non-current assets acquired 329 Total assets acquired 328,997 Accounts payable assumed (8,874 ) Income tax payable assumed (502 ) Other current liabilities assumed (5,164 ) Deferred tax liabilities, net assumed (15,408 ) Total liabilities assumed (29,948 ) Total purchase price consideration $ 299,049 Non-current contingent consideration obligation (43,500 ) Total cash consideration $ 255,549 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill for the six months ended June 30, 2018 (in thousands): Goodwill – December 31, 2017 (1) $ 730,464 Additions 223,833 Foreign currency translation adjustments (2) (5,039 ) Goodwill – June 30, 2018 (1) $ 949,258 (1) There are no accumulated impairments losses at the beginning or end of any period presented. (2) The decrease is primarily related to translation gains 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, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Gross Value Accumulated Amortization Net Book Developed technology $ 266,239 $ (154,935 ) $ 111,304 Trademarks, branding and domain names 32,772 (10,470 ) 22,302 Noncompetition agreements 8,390 (5,093 ) 3,297 Acquired lease intangibles 5,708 (5,439 ) 269 Total $ 313,109 $ (175,937 ) $ 137,172 December 31, 2017 Gross Value Accumulated Amortization Net Book Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of June 30, 2018, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2018 $ 18,542 2019 32,409 2020 31,149 2021 23,596 2022 16,368 Thereafter 8,988 Total $ 131,052 |
Other Current and Non-Current29
Other Current and Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Accrued accounts payable $ 22,879 $ 38,046 Accrued compensation liability 26,050 33,815 Accrued restructuring liability 3,617 3,674 Accrued payable from acquisitions 10,000 12,800 Accrued lease incentive obligation 24,895 20,059 Value-added taxes payable 3,538 3,453 Other current liabilities 8,846 11,242 Total other current liabilities $ 99,825 $ 123,089 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): June 30, December 31, 2018 2017 Contingent consideration obligation $ 45,000 $ — Accrued payable from acquisitions 25,000 20,000 Accrued restructuring liability 9,269 10,856 Unrecognized tax liability 10,205 8,975 Accrued lease incentive obligation — 4,836 Other non-current liabilities 3,765 4,245 Total other non-current liabilities $ 93,239 $ 48,912 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Summary of Net Restructuring Charges Within Consolidated Statement of Operation | We recorded the following net restructuring charges within our consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Cost of revenue $ — $ — $ 27 $ — Research and development (109 ) 1,265 78 333 General and administrative 509 157 766 244 Total restructuring charges $ 400 $ 1,422 $ 871 $ 577 |
Summary of Restructuring Plan Activity | Restructuring activities, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q2 2015 Other Restructuring Plan Restructuring Plan Restructuring Plans Total Restructuring liability – December 31, 2017 $ 371 $ 14,152 $ 7 $ 14,530 Restructuring expense and adjustments 770 76 25 871 Cash payments (756 ) (1,727 ) (32 ) (2,515 ) Restructuring liability – June 30, 2018 $ 385 $ 12,501 $ — $ 12,886 Cumulative costs to date, as of June 30, 2018 $ 2,236 $ 34,400 $ 2,195 $ 38,831 Total costs expected to be incurred, as of June 30, 2018 $ 2,252 $ 34,400 $ 2,195 $ 38,847 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards | We recorded stock-based compensation expense related to grants of employee stock options, restricted stock units (“ZSUs”) and performance-based awards in our consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 564 $ 371 $ 995 $ 990 Research and development 10,363 10,483 18,988 22,196 Sales and marketing 2,214 1,751 4,050 3,538 General and administrative 4,228 3,627 7,449 7,034 Total stock-based compensation expense $ 17,369 $ 16,232 $ 31,482 $ 33,758 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the six months ended June 30, 2018 (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, 2017 32,964 $ 2.07 $ 64,114 6.32 Granted 6,122 3.48 Forfeited, expired and cancelled (217 ) 3.77 Exercised (593 ) 1.65 Balance as of June 30, 2018 38,276 $ 2.29 $ 68,360 6.48 |
Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions | The following table presents the weighted-average grant date fair value and the related assumptions used to estimate the fair value of our stock options: Three and Six Months Ended June 30, 2018 Expected term, in years 6 Risk-free interest rates 2.70 % Expected volatility 44 % Dividend yield — Weighted-average estimated fair value of options granted $ 1.60 |
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, 2018 (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, 2017 45,478 $ 3.00 $ 181,912 Granted 27,858 3.85 Vested (9,292 ) 2.95 Forfeited (4,857 ) 3.13 Unvested as of June 30, 2018 59,187 $ 3.40 $ 240,891 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows a summary of changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2018 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities Total Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) Other comprehensive income (loss) before reclassifications (6,721 ) 107 (6,614 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (6,721 ) 107 (6,614 ) Balance as of June 30, 2018 $ (100,040 ) $ (71 ) $ (100,111 ) |
Net Income (Loss) Per Share o33
Net Income (Loss) Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following tables set 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, Six Months Ended June 30, 2018 2018 Class Class A (1) A (1) BASIC: Net income (loss) attributable to common stockholders – basic $ (911 ) $ 4,698 Weighted-average common shares outstanding – basic 858,666 864,117 Net income (loss) per share attributable to common stockholders – basic $ (0.00 ) $ 0.01 DILUTED: Net income (loss) attributable to common stockholders – basic $ (911 ) $ 4,698 Weighted-average common shares outstanding – basic 858,666 864,117 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan — 10,803 ZSUs — 14,093 Performance-based ZSUs — 1,272 Weighted-average common shares outstanding – diluted 858,666 890,285 Net income (loss) per share attributable to common stockholders – diluted $ (0.00 ) $ 0.01 (1) The net income (loss) per share calculations for the three and six months ended June 30, 2018 are presented as if the one-for-one class conversion occurred as of the beginning of the respective period. Three Months Ended June 30, Six Months Ended June 30, 2017 2017 Class Class Class Class Class Class A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 4,565 $ 407 $ 121 $ (3,896 ) $ (382 ) $ (103 ) Weighted-average common shares outstanding – basic 773,704 68,904 20,517 772,679 75,289 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 4,565 $ 407 $ 121 $ (3,896 ) $ (382 ) $ (103 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 121 — — (103 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 407 — — (382 ) — — Reallocation of net income (loss) to Class B and Class C shares — — — — — — Net income (loss) attributable to common stockholders – diluted $ 5,093 $ 407 $ 121 $ (4,381 ) $ (382 ) $ (103 ) Weighted-average common shares outstanding – basic 773,704 68,904 20,517 772,679 75,289 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 — — 75,829 — — 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 20,517 869,025 75,289 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.01 $ 0.01 $ 0.01 $ (0.01 ) $ (0.01 ) $ (0.01 ) |
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, 2018 2017 2018 2017 Stock options and employee stock purchase plan 38,278 16,827 9,737 35,138 Restricted shares — — — 1,062 ZSUs 53,536 2,770 2,720 49,263 Total 91,814 19,597 12,457 85,463 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Schedule of Remaining Cash to be Received Future Minimum Rentals for Noncancelable Lease Term | As of June 30, 2018, the remaining cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: Remaining 2018 $ 4,612 2019 11,345 2020 14,369 2021 20,287 2022 20,896 Thereafter 93,982 Total $ 165,491 |
Schedule of Future Minimum Lease Payments for Operating Leases | We have entered into operating leases primarily for office facilities. As of June 30, 2018, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: Remaining 2018 $ 4,196 2019 8,421 2020 6,292 2021 5,282 2022 1,548 Thereafter — Total $ 25,739 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments | We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of June 30, 2018, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: Remaining 2018 $ 9,112 2019 19,500 2020 32,750 Thereafter — Total $ 61,362 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts primarily for hosting of data systems and other services. As of June 30, 2018, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2018 $ 6,959 2019 3,731 2020 674 Thereafter — Total $ 11,364 |
Overview and Summary of Signi36
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Initial offering period | December 2,011 | |||
Online game revenue and income from operations | $ 500,000 | $ 900,000 | ||
Discontinued game revenue from adjustments of prior period deferred revenue | $ 0 | $ 0 | ||
Impact on reported earnings per share | $ 0 | $ 0.01 | ||
Changes in revenue from adjustments of prior period deferred revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Stipulate payment terms as specific number of days subsequent to end of the month | 30 days | |||
Maximum [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Stipulate payment terms as specific number of days subsequent to end of the month | 60 days | |||
Facebook [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Percentage of transaction fee recognized price | 70.00% | |||
Consumable Virtual Items [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Revenue recognition period | 1 month |
Revenue from Contracts with C37
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 25, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||
Net cash flows provided by (used in) operating activities | $ 37,188,000 | $ 32,909,000 | [1] | ||||
Net cash flows provided by (used in) investing activities | (120,519,000) | (38,799,000) | [1] | ||||
Net cash flows provided by (used in) financing activities | (75,232,000) | (107,445,000) | [1] | ||||
Net income (loss) | $ (911,000) | $ 5,093,000 | 4,698,000 | (4,381,000) | |||
Deferred revenue | 28,126,000 | $ 13,021,000 | [1] | ||||
Current deferred revenue recognized | 34,600,000 | 118,200,000 | |||||
Gram Games [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Accounts receivables, net | $ 10,700,000 | $ 10,700,000 | $ 10,747,000 | ||||
Minimum [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Contract payment term related to advertising arrangements | 30 days | ||||||
Maximum [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Contract payment term related to advertising arrangements | 60 days | ||||||
Expected length of unsatisfaction of performance obligations | 1 year | ||||||
Durable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Estimated weighted average life of product | 9 months | 8 months | 9 months | 9 months | |||
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Consumable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Percentage of online game revenue | 47.00% | 43.00% | 46.00% | 45.00% | |||
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Durable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Percentage of online game revenue | 53.00% | 57.00% | 54.00% | 55.00% | |||
ASC Topic 606 [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Net reduction to accumulated deficit opening balance | $ 4,000,000 | ||||||
Increase in accumulated deficit result of net income impact transition adjustment recognized | 4,000,000 | ||||||
Net cash flows provided by (used in) operating activities | $ 0 | ||||||
Net cash flows provided by (used in) investing activities | 0 | ||||||
Net cash flows provided by (used in) financing activities | 0 | ||||||
ASC Topic 606 [Member] | Impact of Changes in Accounting Policies, Effect of Change Higher/(Lower) [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Net reduction in opening balance of deferred revenue | $ 4,000,000 | ||||||
Net income (loss) | $ 3,002,000 | 3,940,000 | |||||
Deferred revenue | $ (3,900,000) | ||||||
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the interim consolidated financial statements for further discussion on the adoption. |
Revenue from Contracts with C38
Revenue from Contracts with Customers - Summary of Impact of Adoption of Accounting Standards on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current liabilities: | ||
Deferred revenue | $ 156,316 | $ 134,007 |
Total current liabilities | 269,683 | 282,711 |
Deferred revenue | 2,359 | 568 |
Total liabilities | 386,279 | 338,093 |
Accumulated deficit | (1,762,437) | (1,691,768) |
Total stockholders' equity | 1,599,594 | 1,641,240 |
Total liabilities and stockholders' equity | 1,985,873 | $ 1,979,333 |
ASC Topic 606 [Member] | Amounts without Adoption of ASC Topic 606 [Member] | ||
Current liabilities: | ||
Deferred revenue | 164,930 | |
Total current liabilities | 278,297 | |
Deferred revenue | 1,708 | |
Total liabilities | 394,242 | |
Accumulated deficit | (1,770,400) | |
Total stockholders' equity | 1,591,631 | |
Total liabilities and stockholders' equity | 1,985,873 | |
ASC Topic 606 [Member] | Increase (Decrease) from ASC Topic 606 Adoption [Member] | ||
Current liabilities: | ||
Deferred revenue | (8,614) | |
Total current liabilities | (8,614) | |
Deferred revenue | 651 | |
Total liabilities | (7,963) | |
Accumulated deficit | 7,963 | |
Total stockholders' equity | $ 7,963 |
Revenue from Contracts with C39
Revenue from Contracts with Customers - Summary of Impact of Adoption of Accounting Standards on Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 217,045 | $ 209,231 | $ 425,277 | $ 403,515 |
Income (loss) from operations | (2,986) | 5,692 | 1,271 | (3,288) |
Income (loss) before taxes | 1,419 | 8,415 | 10,887 | 1,808 |
Net income (loss) | $ (911) | $ 5,093 | $ 4,698 | $ (4,381) |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Diluted | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Advertising and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 52,365 | $ 45,486 | $ 99,044 | $ 86,289 |
ASC Topic 606 [Member] | Amounts without Adoption of ASC Topic 606 [Member] | ||||
Revenue: | ||||
Total revenue | 214,043 | 421,337 | ||
Income (loss) from operations | (5,988) | (2,669) | ||
Income (loss) before taxes | (1,583) | 6,947 | ||
Net income (loss) | $ (3,913) | $ 758 | ||
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0 | $ 0 | ||
Diluted | $ 0 | $ 0 | ||
ASC Topic 606 [Member] | Impact of Changes in Accounting Policies, Effect of Change Higher/(Lower) [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,002 | $ 3,940 | ||
Income (loss) from operations | 3,002 | 3,940 | ||
Income (loss) before taxes | 3,002 | 3,940 | ||
Net income (loss) | $ 3,002 | $ 3,940 | ||
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0 | $ 0.01 | ||
Diluted | $ 0 | $ 0.01 | ||
ASC Topic 606 [Member] | Advertising and Other [Member] | Amounts without Adoption of ASC Topic 606 [Member] | ||||
Revenue: | ||||
Total revenue | $ 49,363 | $ 95,104 | ||
ASC Topic 606 [Member] | Advertising and Other [Member] | Impact of Changes in Accounting Policies, Effect of Change Higher/(Lower) [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,002 | $ 3,940 |
Revenue from Contracts with C40
Revenue from Contracts with Customers - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 217,045 | $ 209,231 | $ 425,277 | $ 403,515 |
Mobile Online Game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 143,026 | 139,250 | 282,856 | 266,489 |
Web Online Game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 21,654 | 24,495 | 43,377 | 50,737 |
Online Game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 164,680 | 163,745 | 326,233 | 317,226 |
Mobile Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 49,718 | 40,618 | 92,489 | 74,992 |
Web Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 2,528 | 3,825 | 4,582 | 9,505 |
Other Advertising [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 119 | 1,043 | 1,973 | 1,792 |
Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 52,365 | $ 45,486 | $ 99,044 | $ 86,289 |
Revenue from Contracts with C41
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 217,045 | $ 209,231 | $ 425,277 | $ 403,515 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 142,541 | 139,768 | 278,537 | 267,973 |
All Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 74,504 | $ 69,463 | $ 146,740 | $ 135,542 |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Short-Term Investments Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 182,073 | $ 308,684 |
Gross Unrealized Losses | (71) | (178) |
Aggregate Fair Value | 182,002 | 308,506 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 182,073 | 308,684 |
Gross Unrealized Losses | (71) | (178) |
Aggregate Fair Value | $ 182,002 | $ 308,506 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized losses related to short-term investments | $ (100,000) |
Fair value | 56,900,000 |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 |
Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale short-term investments period of contractual maturities | 1 year |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | May 25, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value assets liabilities transfers between valuation levels | $ 0 | $ 0 | ||
PuzzleSocial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation | $ 0 | 0 | ||
Gram Games [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation | 45,000,000 | $ 45,000,000 | $ 43,500,000 | |
Contingent consideration payable, total years | 3 years | |||
Gram Games [Member] | Research and Development Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation, expense recognized | $ 1,500,000 | $ 1,500,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 257,773 | $ 531,006 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 45,000 | |
Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 182,002 | 308,506 |
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 50,871 | 177,577 |
Cash Equivalents [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 24,900 | 44,923 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 50,871 | 177,577 |
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 50,871 | 177,577 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 206,902 | 353,429 |
Fair Value, Inputs, Level 2 | Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 182,002 | 308,506 |
Fair Value, Inputs, Level 2 | Cash Equivalents [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 24,900 | $ 44,923 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 45,000 | |
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 | $ 45,000 |
Fair Value Measurements - Fai46
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Additions | $ 43,500 |
Fair value adjustments | 1,500 |
Contingent consideration obligation, Ending Balance | $ 45,000 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 359,129 | $ 360,633 |
Less: Accumulated depreciation | (94,884) | (94,044) |
Total property and equipment, net | 264,245 | 266,589 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 20,354 | 21,583 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 32,065 | 32,509 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 89,130 | 89,130 |
Building and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 200,139 | 199,070 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 10,467 | 10,376 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 6,974 | $ 7,965 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 264,245 | $ 266,589 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 260,433 | 263,037 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 3,812 | $ 3,552 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | May 25, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | ||
Weighted average amortization period of acquired intangible assets | 4 years 3 months 18 days | |
Noncompetition Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Weighted average amortization period of acquired intangible assets | 1 year 1 month 6 days | |
Gram Games [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition effective date of acquisition | May 25, 2018 | |
Percentage of acquired equity interest | 100.00% | |
Business acquisition, cost of acquired entity | $ 299,000 | |
Business acquisition, cost of acquired entity upfront cash paid | 230,500 | |
Business acquisition, retained in escrow | $ 25,000 | |
Business acquisition, escrow period | 18 months | |
Estimated amount allocated to business combination | $ 255,549 | |
Remaining purchase contingent consideration | $ 43,500 | $ 45,000 |
Potential future payments maximum period | 3 years | |
Weighted average amortization period of acquired intangible assets | 4 years 8 months 12 days | |
Gram Games [Member] | General and Administrative Expense [Member] | ||
Business Acquisition [Line Items] | ||
Professional fees and transaction taxes | $ 1,300 | |
Gram Games [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Preliminary measurement period | 1 year | |
Gram Games [Member] | Noncompetition Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 3 years |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Price Allocation (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | May 25, 2018 | Dec. 31, 2017 |
Intangible assets, net acquired: | |||
Goodwill | $ 949,258 | $ 730,464 | |
Gram Games [Member] | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 8,474 | ||
Accounts receivable, net acquired | $ 10,700 | 10,747 | |
Prepaid expenses acquired | 279 | ||
Other current assets acquired | 937 | ||
Intangible assets, net acquired: | |||
Goodwill | 223,833 | ||
Property and equipment, net acquired | 898 | ||
Other non-current assets acquired | 329 | ||
Total assets acquired | 328,997 | ||
Accounts payable assumed | (8,874) | ||
Income tax payable assumed | (502) | ||
Other current liabilities assumed | (5,164) | ||
Deferred tax liabilities, net assumed | (15,408) | ||
Total liabilities assumed | (29,948) | ||
Total purchase price consideration | 299,049 | ||
Non-current contingent consideration obligation | (43,500) | ||
Total cash consideration | 255,549 | ||
Gram Games [Member] | Developed Technology, Useful Life of 5 Years [Member] | |||
Intangible assets, net acquired: | |||
Intangible assets, net acquired | 43,000 | ||
Gram Games [Member] | Developed Technology, Useful Life of 3 Years [Member] | |||
Intangible assets, net acquired: | |||
Intangible assets, net acquired | 26,000 | ||
Gram Games [Member] | Trade Names, Useful Life of 7 Years [Member] | |||
Intangible assets, net acquired: | |||
Intangible assets, net acquired | 14,000 | ||
Gram Games [Member] | Trade Names, Useful Life of 3 Years [Member] | |||
Intangible assets, net acquired: | |||
Intangible assets, net acquired | $ 500 |
Acquisitions - Schedule of Ac51
Acquisitions - Schedule of Acquisition Price Allocation (Parenthetical) (Detail) - Gram Games [Member] | May 25, 2018 |
Developed Technology, Useful Life of 5 Years [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 5 years |
Developed Technology, Useful Life of 3 Years [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 3 years |
Trade Names, Useful Life of 7 Years [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 7 years |
Trade Names, Useful Life of 3 Years [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 3 years |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill Roll Forward | |
Goodwill – December 31, 2017 | $ 730,464 |
Additions | 223,833 |
Foreign currency translation adjustments | (5,039) |
Goodwill – June 30, 2018 | $ 949,258 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill Roll Forward | ||
Accumulated impairments losses | $ 0 | $ 0 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets, Net - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 313,109 | $ 230,278 |
Accumulated Amortization | (175,937) | (166,020) |
Net Book Value | 137,172 | 64,258 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 266,239 | 197,908 |
Accumulated Amortization | (154,935) | (147,427) |
Net Book Value | 111,304 | 50,481 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 32,772 | 18,272 |
Accumulated Amortization | (10,470) | (10,152) |
Net Book Value | 22,302 | 8,120 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,390 | 8,390 |
Accumulated Amortization | (5,093) | (3,079) |
Net Book Value | 3,297 | 5,311 |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (5,439) | (5,362) |
Net Book Value | $ 269 | $ 346 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 3 months 18 days | ||||
Amortization Expense | $ 6 | $ 4.1 | $ 10.6 | $ 9.5 | |
Trademarks, Branding and Domain Names [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 6.1 | $ 6.1 | $ 6.1 | ||
Weighted-average remaining useful lives of acquired intangible assets | 6 years 9 months 18 days | ||||
Developed Technology [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 4 years | ||||
Acquired Lease Intangibles [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 1 year 9 months 18 days | ||||
Noncompetition Agreements [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 1 year 1 month 6 days |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
Remaining 2,018 | $ 18,542 |
2,019 | 32,409 |
2,020 | 31,149 |
2,021 | 23,596 |
2,022 | 16,368 |
Thereafter | 8,988 |
Total | $ 131,052 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Federal corporate tax rate | 21.00% | 35.00% | ||
Increase in income tax expense benefit | $ 1,000,000 | |||
Recognised provisional tax benefit | $ 5,000,000 | |||
Deferred tax assets and liabilities, net of valuation allowance | 2,400,000 | |||
Alternative minimum tax credit refund | $ 2,600,000 | |||
Adjustments to provisional tax benefit previously recorded | $ 0 | 0 | ||
Deferred tax effects related to GILTI | 0 | $ 0 | ||
Increase in income tax expense benefit | $ 1,000,000 |
Other Current and Non-Current58
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Current [Abstract] | ||
Accrued accounts payable | $ 22,879 | $ 38,046 |
Accrued compensation liability | 26,050 | 33,815 |
Accrued restructuring liability | 3,617 | 3,674 |
Accrued payable from acquisitions | 10,000 | 12,800 |
Accrued lease incentive obligation | 24,895 | 20,059 |
Value-added taxes payable | 3,538 | 3,453 |
Other current liabilities | 8,846 | 11,242 |
Total other current liabilities | $ 99,825 | $ 123,089 |
Other Current and Non-Current59
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | ||
Contingent consideration obligation | $ 45,000 | |
Accrued payable from acquisitions | 25,000 | $ 20,000 |
Accrued restructuring liability | 9,269 | 10,856 |
Unrecognized tax liability | 10,205 | 8,975 |
Accrued lease incentive obligation | 4,836 | |
Other non-current liabilities | 3,765 | 4,245 |
Total other non-current liabilities | $ 93,239 | $ 48,912 |
Restructuring - Summary of Net
Restructuring - Summary of Net Restructuring Charges Within Consolidated Statement of Operation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | $ 400 | $ 1,422 | $ 871 | $ 577 |
Cost of Revenue [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | 27 | |||
Research and Development [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | (109) | 1,265 | 78 | 333 |
General and Administrative [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | $ 509 | $ 157 | $ 766 | $ 244 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Plan Activity (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability – December 31, 2017 | $ 14,530 | |
Restructuring expense and adjustments | 871 | |
Cash payments | (2,515) | |
Restructuring liability – June 30, 2018 | $ 12,886 | 12,886 |
Cumulative costs to date, as of June 30, 2018 | 38,831 | 38,831 |
Total costs expected to be incurred, as of June 30, 2018 | 38,847 | 38,847 |
Q4 2017 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability – December 31, 2017 | 371 | |
Restructuring expense and adjustments | 400 | 770 |
Cash payments | (756) | |
Restructuring liability – June 30, 2018 | 385 | 385 |
Cumulative costs to date, as of June 30, 2018 | 2,236 | 2,236 |
Total costs expected to be incurred, as of June 30, 2018 | 2,252 | 2,252 |
Q2 2015 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability – December 31, 2017 | 14,152 | |
Restructuring expense and adjustments | 100 | 76 |
Cash payments | (1,727) | |
Restructuring liability – June 30, 2018 | 12,501 | 12,501 |
Cumulative costs to date, as of June 30, 2018 | 34,400 | 34,400 |
Total costs expected to be incurred, as of June 30, 2018 | 34,400 | 34,400 |
Other Restructuring Plans [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring liability – December 31, 2017 | 7 | |
Restructuring expense and adjustments | 25 | |
Cash payments | (32) | |
Cumulative costs to date, as of June 30, 2018 | 2,195 | 2,195 |
Total costs expected to be incurred, as of June 30, 2018 | $ 2,195 | $ 2,195 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses (benefits) | $ 871 | |||
Net restructuring charge | $ 400 | $ 1,422 | 871 | $ 577 |
Q4 2017 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses (benefits) | 400 | 770 | ||
Net restructuring charge | 400 | 800 | ||
Employee severance Costs | 100 | 300 | ||
Other costs | 300 | 500 | ||
Q2 2015 Restructuring Plan [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses (benefits) | $ 100 | $ 76 | ||
Restructuring liability, expected paid out period | 3 years 10 months 24 days |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 17,369 | $ 16,232 | $ 31,482 | $ 33,758 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 564 | 371 | 995 | 990 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 10,363 | 10,483 | 18,988 | 22,196 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2,214 | 1,751 | 4,050 | 3,538 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,228 | $ 3,627 | $ 7,449 | $ 7,034 |
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, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 32,964 | |
Stock Options, Granted | 6,122 | |
Stock Options, Forfeited, expired and cancelled | (217) | |
Stock Options, Exercised | (593) | |
Stock Options Outstanding, Ending balance | 38,276 | 32,964 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.07 | |
Weighted Average Exercise Price, Granted | 3.48 | |
Weighted Average Exercise Price, Forfeited, expired and cancelled | 3.77 | |
Weighted Average Exercise Price, Exercised | 1.65 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 2.29 | $ 2.07 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 68,360 | $ 64,114 |
Outstanding Options, Weighted Average Contractual Term (in years) | 6 years 5 months 23 days | 6 years 3 months 25 days |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected term, in years | 6 years | 6 years |
Risk-free interest rates, minimum | 2.70% | 2.70% |
Expected volatility, minimum | 44.00% | 44.00% |
Dividend yield | 0.00% | 0.00% |
Weighted-average estimated fair value of options granted | $ 1.60 | $ 1.60 |
Stockholders' Equity - Schedu66
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, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Outstanding Shares, Beginning balance | 45,478 | |
Unvested Shares, Granted | 27,858 | |
Unvested Shares, Vested | (9,292) | |
Unvested Shares, Forfeited | (4,857) | |
Unvested Outstanding Shares, Ending balance | 59,187 | |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ 3 | |
Unvested Weighted Average Grant Date Fair Value, Granted | 3.85 | |
Unvested Weighted Average Grant Date Fair Value, Vested | 2.95 | |
Unvested Weighted Average Grant Date Fair Value, Forfeited | 3.13 | |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ 3.40 | |
Unvested, Aggregate Intrinsic Value of Unvested ZSU | $ 240,891 | $ 181,912 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2018 | Nov. 30, 2016 | |
Common Class A [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||
2016 Share Repurchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Treasury stock acquired, average cost per share | $ 3.51 | $ 3.59 | $ 2.78 | ||
Stock repurchase program, aggregate number of shares repurchased value | $ 24,200,000 | $ 65,400,000 | $ 101,000,000 | ||
2016 Share Repurchase Program [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||
2016 Share Repurchase Program [Member] | Common Class A [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | 6.9 | 18.2 | 36.3 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance, Value | $ 1,641,240 | |||
Other comprehensive income (loss), net of tax | $ (29,721) | $ 11,504 | (6,614) | $ 17,008 |
Ending balance, Value | 1,599,594 | 1,599,594 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance, Value | (93,319) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (6,721) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | |||
Other comprehensive income (loss), net of tax | (6,721) | |||
Ending balance, Value | (100,040) | (100,040) | ||
Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance, Value | (178) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 107 | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | |||
Other comprehensive income (loss), net of tax | 107 | |||
Ending balance, Value | (71) | (71) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance, Value | (93,497) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (6,614) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | |||
Other comprehensive income (loss), net of tax | (6,614) | |||
Ending balance, Value | $ (100,111) | $ (100,111) |
Net Income (Loss) Per Share o69
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) | May 02, 2018Voting_Rightsshares | Jun. 30, 2018shares | Dec. 31, 2017shares |
Earnings Per Share Diluted [Line Items] | |||
Conversion of stock description | On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. Accordingly, beginning in the second quarter of 2018, the Company calculated basic and dilutive net income (loss) per share under a single-class method. | ||
Voting rights per share | Voting_Rights | 1 | ||
Common stock, shares outstanding | 860,181,000 | 870,660,000 | |
Common Class A [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Number of shares issued upon conversion of common stock | 1 | ||
Common stock, shares outstanding | 860,181,000 | 783,376,000 | |
Common Class B [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Maximum percentage of common stock outstanding required for conversion | 10.00% | ||
Common stock, shares outstanding | 0 | 66,767,000 | |
Common Class C [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Common stock, shares outstanding | 0 | 20,517,000 |
Net Income (Loss) Per Share o70
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
BASIC: | ||||
Net income (loss) attributable to common stockholders – basic | $ (911) | $ 5,093 | $ 4,698 | $ (4,381) |
Weighted-average common shares outstanding – basic | 858,666 | 863,125 | 864,117 | 869,025 |
Net income (loss) per share attributable to common stockholders – basic | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
DILUTED: | ||||
Weighted-average common shares outstanding – basic | 858,666 | 863,125 | 864,117 | 869,025 |
Weighted-average common shares outstanding – diluted | 858,666 | 887,991 | 890,285 | 869,025 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Common Class A [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders – basic | $ (911) | $ 4,565 | $ 4,698 | $ (3,896) |
Weighted-average common shares outstanding – basic | 858,666 | 773,704 | 864,117 | 772,679 |
Net income (loss) per share attributable to common stockholders – basic | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders – basic | $ (911) | $ 4,565 | $ 4,698 | $ (3,896) |
Net income (loss) attributable to common stockholders – diluted | $ 5,093 | $ (4,381) | ||
Weighted-average common shares outstanding – basic | 858,666 | 773,704 | 864,117 | 772,679 |
Weighted-average common shares outstanding – diluted | 858,666 | 887,991 | 890,285 | 869,025 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0 | $ 0.01 | $ 0.01 | $ (0.01) |
Common Class A [Member] | Stock options and employee stock purchase plan [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 9,811 | 10,803 | ||
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 14,710 | 14,093 | ||
Common Class A [Member] | Performance Based Restricted Stock Units (ZSUs) [Member] | ||||
DILUTED: | ||||
Weighted-average effect of dilutive securities | 345 | 1,272 | ||
Common Class B [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders – basic | $ 407 | $ (382) | ||
Weighted-average common shares outstanding – basic | 68,904 | 75,289 | ||
Net income (loss) per share attributable to common stockholders – basic | $ 0.01 | $ (0.01) | ||
DILUTED: | ||||
Net income (loss) attributable to common stockholders – basic | $ 407 | $ (382) | ||
Net income (loss) attributable to common stockholders – diluted | $ 407 | $ (382) | ||
Weighted-average common shares outstanding – basic | 68,904 | 75,289 | ||
Weighted-average common shares outstanding – diluted | 69,821 | 75,289 | ||
Net income (loss) per share attributable to common stockholders – diluted | $ 0.01 | $ (0.01) | ||
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 – basic | $ 121 | $ (103) | ||
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | ||
Net income (loss) per share attributable to common stockholders – basic | $ 0.01 | $ (0.01) | ||
DILUTED: | ||||
Net income (loss) attributable to common stockholders – basic | $ 121 | $ (103) | ||
Net income (loss) attributable to common stockholders – diluted | $ 121 | $ (103) | ||
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | ||
Weighted-average common shares outstanding – diluted | 20,517 | 20,517 | ||
Net income (loss) per share attributable to common stockholders – diluted | $ 0.01 | $ (0.01) | ||
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 | $ (103) | ||
Conversion of common stock class | 20,517 | 20,517 | ||
Class B convert to Class A [Member] | Common Class A [Member] | ||||
DILUTED: | ||||
Reallocation of net income (loss) as a result of common stock class conversion | $ 407 | $ (382) | ||
Conversion of common stock class | 68,904 | 75,829 |
Net Income (Loss) Per Share o71
Net Income (Loss) Per Share of Common Stock - Shares excluded from Calculation of Diluted Net Income (Loss) per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 91,814 | 19,597 | 12,457 | 85,463 |
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 | 38,278 | 16,827 | 9,737 | 35,138 |
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 | 1,062 | |||
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 | 53,536 | 2,770 | 2,720 | 49,263 |
Leases - Addtional Information
Leases - Addtional Information (Detail) - San Francisco, California [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Lessor Lease Description [Line Items] | |
Lease expiration date | Feb. 28, 2027 |
Total rental payments to be received | $ 167.3 |
Building occupancy rate by tenant | 43.00% |
Current lease incentive obligation to pay for tenant improvements | $ 24.9 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Cash to be Received Future Minimum Rentals for Noncancelable Lease Term (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
Remaining 2,018 | $ 4,612 |
2,019 | 11,345 |
2,020 | 14,369 |
2,021 | 20,287 |
2,022 | 20,896 |
Thereafter | 93,982 |
Total | $ 165,491 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
Remaining 2,018 | $ 4,196 |
2,019 | 8,421 |
2,020 | 6,292 |
2,021 | 5,282 |
2,022 | 1,548 |
Total | $ 25,739 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2,018 | $ 9,112 |
2,019 | 19,500 |
2,020 | 32,750 |
Total | $ 61,362 |
Commitments and Contingencies76
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2,018 | $ 6,959 |
2,019 | 3,731 |
2,020 | 674 |
Total | $ 11,364 |
Commitments and Contingencies77
Commitments and Contingencies - Additional Information (Detail) - Case | May 17, 2018 | Apr. 04, 2014 | Mar. 11, 2013 | Aug. 16, 2012 | Aug. 03, 2012 |
Delaware [Member] | |||||
Loss Contingencies [Line Items] | |||||
Claims filed | 1 | ||||
Claims settled | 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 |