Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZNGA | |
Entity Registrant Name | Zynga Inc | |
Entity Central Index Key | 0001439404 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A common stock | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-35375 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1733483 | |
Entity Address, Address Line One | 699 Eighth Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
City Area Code | 855 | |
Local Phone Number | 449-9642 | |
Entity Common Stock, Shares Outstanding | 956,447,359 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 552,421 | $ 423,323 |
Short-term investments | 708,513 | 938,173 |
Accounts receivable, net of allowance of $401 at March 31, 2020 and $0 at December 31, 2019 | 166,065 | 140,078 |
Restricted cash | 30,006 | 30,006 |
Prepaid expenses | 31,311 | 27,533 |
Other current assets | 15,830 | 16,557 |
Total current assets | 1,504,146 | 1,575,670 |
Long-term investments | 173,305 | 175,300 |
Goodwill | 1,436,305 | 1,460,933 |
Intangible assets, net | 215,758 | 233,005 |
Property and equipment, net | 31,362 | 25,826 |
Right-of-use assets | 132,305 | 136,972 |
Prepaid expenses | 33,998 | 37,815 |
Other non-current assets | 15,242 | 15,093 |
Total assets | 3,542,421 | 3,660,614 |
Current liabilities: | ||
Accounts payable | 18,564 | 27,799 |
Income tax payable | 3,106 | 649 |
Deferred revenue | 451,740 | 432,962 |
Operating lease liabilities | 16,043 | 15,753 |
Other current liabilities | 308,385 | 314,805 |
Total current liabilities | 797,838 | 791,968 |
Convertible senior notes, net | 576,666 | 570,456 |
Deferred revenue | 1,618 | 567 |
Deferred tax liabilities, net | 39,118 | 33,479 |
Non-current operating lease liabilities | 126,036 | 130,301 |
Other non-current liabilities | 145,566 | 158,413 |
Total liabilities | 1,686,842 | 1,685,184 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value and additional paid in capital - authorized shares: 2,020,517; shares outstanding: 955,826 shares as of March 31, 2020 and 950,042 as of December 31, 2019 | 3,927,962 | 3,898,695 |
Accumulated other comprehensive income (loss) | (155,891) | (125,935) |
Accumulated deficit | (1,916,492) | (1,797,330) |
Total stockholders’ equity | 1,855,579 | 1,975,430 |
Total liabilities and stockholders’ equity | $ 3,542,421 | $ 3,660,614 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 401 | $ 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 | 955,826,000 | 950,042,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 403,767 | $ 265,403 |
Costs and expenses: | ||
Cost of revenue | 146,202 | 121,643 |
Research and development | 197,845 | 161,880 |
Sales and marketing | 123,171 | 102,011 |
General and administrative | 28,203 | 21,504 |
Total costs and expenses | 495,421 | 407,038 |
Income (loss) from operations | (91,654) | (141,635) |
Interest income | 5,525 | 443 |
Interest expense | (6,955) | (1,263) |
Other income (expense), net | (2,330) | 3,375 |
Income (loss) before income taxes | (95,414) | (139,080) |
Provision for (benefit from) income taxes | 8,511 | (10,252) |
Net income (loss) | $ (103,925) | $ (128,828) |
Net income (loss) per share attributable to common stockholders: | ||
Basic | $ (0.11) | $ (0.14) |
Diluted | $ (0.11) | $ (0.14) |
Weighted-average common shares used to compute net income (loss) per share attributable to common stockholders: | ||
Basic | 952,502 | 926,230 |
Diluted | 952,502 | 926,230 |
Online Game [Member] | ||
Revenue: | ||
Total revenue | $ 344,360 | $ 200,164 |
Advertising and Other [Member] | ||
Revenue: | ||
Total revenue | $ 59,407 | $ 65,239 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Partners Capital [Abstract] | ||
Net income (loss) | $ (103,925) | $ (128,828) |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | (28,915) | 6,963 |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities, net of tax | (1,041) | 14 |
Other comprehensive income (loss), net of tax | (29,956) | 6,977 |
Comprehensive income (loss) | $ (133,881) | $ (121,851) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | RSUs [Member] | Class A Common stock [Member] | Class A Common stock [Member]RSUs [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Treasury Stock [Member]RSUs [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance, Value at Dec. 31, 2018 | $ 1,596,610 | $ 5 | $ 3,504,708 | $ (118,439) | $ (1,789,664) | ||||
Beginning balance, Shares at Dec. 31, 2018 | 861,111 | ||||||||
Exercise of stock options and ESPP | 5,304 | 5,304 | |||||||
Exercise of stock options and ESPP, Shares | 5,097 | ||||||||
Vesting of RSUs, net of tax withholdings | $ (11,010) | $ (11,010) | |||||||
Vesting of RSUs, net of tax withholdings, Shares | 2,487 | ||||||||
Acquisition-related common stock issuance | 253,903 | $ 1 | 253,902 | ||||||
Acquisition-related common stock issuance, Shares | 63,795 | ||||||||
Stock-based compensation expense | 18,773 | 18,773 | |||||||
Retirements of treasury stock | $ 11,010 | (11,010) | |||||||
Net income (loss) | (128,828) | (128,828) | |||||||
Other comprehensive income (loss) | 6,977 | 6,977 | |||||||
Ending balance, Value at Mar. 31, 2019 | 1,741,729 | $ 6 | 3,782,687 | (111,462) | (1,929,502) | ||||
Ending balance, Shares at Mar. 31, 2019 | 932,490 | ||||||||
Beginning balance, Value at Dec. 31, 2019 | 1,975,430 | $ 6 | 3,898,689 | (125,935) | (1,797,330) | ||||
Beginning balance, Shares at Dec. 31, 2019 | 950,042 | ||||||||
Exercise of stock options and ESPP | 8,802 | 8,802 | |||||||
Exercise of stock options and ESPP, Shares | 2,511 | ||||||||
Vesting of RSUs, net of tax withholdings | $ (14,836) | $ (14,836) | |||||||
Vesting of RSUs, net of tax withholdings, Shares | 3,273 | ||||||||
Stock-based compensation expense | 20,465 | 20,465 | |||||||
Retirements of treasury stock | $ 14,836 | (14,836) | |||||||
Adoption of ASU 2016-13 | 2016-13 | (401) | (401) | |||||||
Net income (loss) | (103,925) | (103,925) | |||||||
Other comprehensive income (loss) | (29,956) | (29,956) | |||||||
Ending balance, Value at Mar. 31, 2020 | $ 1,855,579 | $ 6 | $ 3,927,956 | $ (155,891) | $ (1,916,492) | ||||
Ending balance, Shares at Mar. 31, 2020 | 955,826 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (103,925) | $ (128,828) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 18,862 | 21,080 |
Stock-based compensation expense | 20,465 | 18,773 |
(Gain) loss from investments, foreign currency and sale of assets, net | 923 | 154 |
(Accretion) amortization on marketable debt securities, net | (1,900) | (153) |
Noncash lease expense | 4,188 | 1,449 |
Noncash interest expense | 6,210 | |
Change in deferred income taxes and other | 5,353 | (20,374) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (27,294) | (30,001) |
Prepaid expenses and other assets | 1,362 | 3,318 |
Accounts payable | (8,971) | (14,293) |
Deferred revenue | 20,713 | 86,474 |
Income tax payable | 2,459 | (5,361) |
Operating lease and other liabilities | 26,369 | 69,309 |
Net cash provided by (used in) operating activities | (35,186) | 1,547 |
Cash flows from investing activities: | ||
Purchases of investments | (471,025) | (29,756) |
Maturities of investments | 605,444 | 8,500 |
Sales of investments | 96,808 | 4,987 |
Acquisition of property and equipment | (8,546) | (5,058) |
Proceeds from sale of property and equipment, net | 26 | 46 |
Business acquisitions, net of cash acquired and restricted cash held in escrow | (299,357) | |
Other investing activities, net | (1,045) | |
Net cash provided by (used in) investing activities | 221,662 | (320,638) |
Cash flows from financing activities: | ||
Taxes paid related to net share settlement of stockholders' equity awards | (14,836) | (11,010) |
Proceeds from issuance of common stock | 8,802 | 4,939 |
Repayment of debt | (1,364) | |
Acquisition-related contingent consideration payment | (48,100) | |
Other financing activities, net | (326) | |
Net cash provided by (used in) financing activities | (54,134) | (7,761) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,244) | 11,605 |
Net change in cash, cash equivalents and restricted cash | 129,098 | (315,247) |
Cash, cash equivalents and restricted cash, beginning of period | 453,329 | 579,996 |
Cash, cash equivalents and restricted cash, end of period | $ 582,427 | 264,749 |
Noncash investing activities: | ||
Acquisition-related common stock issuance | 253,903 | |
Noncash financing activities: | ||
Unsettled stock option exercise | $ 365 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 Apple’s iOS and Google’s Android, and social networking platforms, such as Facebook and Snapchat. 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 interim consolidated financial statements include the operations of the Company and its owned subsidiaries. All 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, 2019. Unaudited Interim Financial Information The accompanying interim consolidated balance sheets as of March 31, 2020, the interim consolidated statements of operations, statements of comprehensive income (loss), statements of stockholders’ equity and statements of cash flows for the three months ended March 31, 2020 and 2019 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 months ended March 31, 2020 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, the discount rate used in discounting our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. Recent Accounting Pronouncements Issued But Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes” Issued And Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” ASC Topic 350-40, Internal-Use Software |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Disaggregation of Revenue The following table presents our revenue disaggregated by platform (in thousands): Three Months Ended March 31, 2020 2019 Online game: Mobile $ 328,671 $ 182,833 Other (1) 15,689 17,331 Online game total $ 344,360 $ 200,164 Advertising and other: Mobile 58,318 63,260 Other (1) 1,089 1,979 Advertising and other total $ 59,407 $ 65,239 Total revenue $ 403,767 $ 265,403 (1) Includes web revenue for online game and web advertising revenue and other revenue for advertising and other The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Three Months Ended March 31, 2020 2019 United States $ 243,250 $ 172,061 All other countries (1) 160,517 93,342 Total revenue $ 403,767 $ 265,403 (1) No foreign country exceeded 10% of our total revenue for any periods presented. Durable virtual items accounted for 77% of online game revenue in the three months ended March 31, 2020 and 66% of online game revenue in the same period of the prior year. Consumable virtual items accounted for 23% of online game revenue in the three months ended March 31, 2020 and 34% of online game revenue in the same period of the prior year. The estimated weighted-average life of durable virtual items was ten months for the three months ended March 31, 2020 and nine months for the same period of the prior year. 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 and are recognized into revenue as we satisfy our performance obligations. Further, payments made by our players are collected by payment processors and remitted to us generally within 45 days of invoicing. Our right to the payments collected on our behalf are unconditional and therefore recorded as accounts receivable, net of the associated payment processing fees. Payments for advertising arrangements are due based on the contractually stated payment terms. 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 months ended March 31, 2020, we recognized $236.1 million of revenue that was included in the current deferred revenue balance on December 31, 2019. The increase in accounts receivable, net during the three months ended March 31, 2020 was primarily driven by sales on account during the period exceeding cash collections of current period and previously due amounts. The increase in deferred revenue during the three months ended March 31, 2020 was primarily driven by the sale of virtual items during the period 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 | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Marketable Securities | 3. Marketable Securities Debt Securities The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term and long-term debt securities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 587,718 $ 129 $ (432 ) $ 587,415 Foreign certificates of deposit and time deposits 77,847 — — 77,847 Total $ 665,565 $ 129 $ (432 ) $ 665,262 Long-term debt securities: Corporate debt securities $ 118,770 $ 154 $ (671 ) $ 118,253 U.S. government and government agency debt securities 54,994 58 — 55,052 Total $ 173,764 $ 212 $ (671 ) $ 173,305 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814,817 $ 148 $ (19 ) $ 814,946 U.S. government and government agency debt securities 25,000 — — 25,000 Foreign certificates of deposit and time deposits 53,786 — — 53,786 Total $ 893,603 $ 148 $ (19 ) $ 893,732 Long-term debt securities: Corporate debt securities $ 108,171 $ 118 $ (1 ) $ 108,288 U.S. government and government agency debt securities 66,979 33 — 67,012 Total $ 175,150 $ 151 $ (1 ) $ 175,300 As of March 31, 2020, all of our short-term debt securities have contractual maturities of one year or less and all of our long-term debt securities have contractual maturities between one and two years. Changes in market interest rates, credit risk of borrowers and overall market liquidity, amongst other factors, cause our short-term debt investments to fall below their cost basis, resulting in unrealized losses. As of March 31, 2020, we had unrealized losses of $1.1 million related to our debt securities that had a fair value of $239.8 million. As of December 31, 2019 our unrealized losses related to debt securities were less than $0.1 million. As of March 31, 2020 and December 31, 2019, none of our investments were in a continuous unrealized loss position for more than 12 months. As of March 31, 2020, we did not consider any of our short-term or long-term debt securities to be 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 debt securities for impairment, we review factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. Equity Securities The net loss recognized as a component of other income (expense), net in our consolidated statement of operations associated with our mutual fund equity investments totaled $0.9 million during the three months ended March 31, 2020. The Company held no equity investments during the three months ended March 31, 2019. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The composition of our financial assets and liabilities as of March 31, 2020 and December 31, 2019 among the three levels of the fair value hierarchy are as follows (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 246,052 $ — $ — $ 246,052 Corporate debt securities — 29,990 — 29,990 Foreign certificates of deposit and time deposits — 4,786 — 4,786 Short-term investments: Corporate debt securities — 587,415 — 587,415 Foreign certificates of deposit and time deposits — 77,847 — 77,847 Mutual funds — 43,251 — 43,251 Long-term investments: Corporate debt securities — 118,253 — 118,253 U.S. government and government agency debt securities — 55,052 — 55,052 Total financial assets $ 246,052 $ 916,594 $ — $ 1,162,646 Liabilities: Contingent consideration $ — $ — $ 318,500 $ 318,500 Total financial liabilities $ — $ — $ 318,500 $ 318,500 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 625 $ — $ — $ 625 Corporate debt securities — 151,770 — 151,770 Foreign certificates of deposit and time deposits — 3,260 — 3,260 Short-term investments: Corporate debt securities — 814,946 — 814,946 U.S. government and government agency debt securities — 25,000 — 25,000 Foreign certificates of deposit and time deposits — 53,786 — 53,786 Mutual funds — 44,441 — 44,441 Long-term investments: Corporate debt securities — 108,288 — 108,288 U.S. government and government agency debt securities — 67,012 — 67,012 Total financial assets $ 625 $ 1,268,503 $ — $ 1,269,128 Liabilities: Contingent consideration $ — $ — $ 320,100 $ 320,100 Total financial liabilities $ — $ — $ 320,100 $ 320,100 The following table presents the activity for the three months ended March 31, 2020 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2019 $ 320,100 Additions — Fair value adjustments 120,000 Payments (121,600 ) Contingent consideration obligation – March 31, 2020 $ 318,500 As of March 31, 2020, our contingent consideration obligations represent the estimated fair value of the additional consideration payable in connection with our acquisitions of Gram Games in the second quarter of 2018 and Small Giant in the first quarter of 2019. Under the terms of each acquisition, contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the respective acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. For both acquisitions, we estimated the acquisition date fair value and each subsequent measurement of the contingent consideration obligation using a Monte Carlo simulation. The table below outlines the significant unobservable inputs used in estimating the fair value measurements of the Company's contingent consideration obligations at March 31, 2020, weighted by the relative fair value of each annual period’s obligation to the total obligation. March 31, 2020 Range Weighted Average Bookings growth rates 0.3% – 26.2% 12.8% Bookings volatility 15.0% – 19.0% 17.9% Asset volatility 38.0% – 41.0% 38.8% Net cash flow margins 24.5% – 36.5% 33.2% Discount rates 10.5% – 14.0% 11.5% Changes in these unobservable inputs would have resulted in a higher or lower contingent consideration obligation. Specific to the Gram Games acquisition, the estimated fair value of the contingent consideration obligation increased from $78.1 million as of December 31, 2019 to $89.2 million as of March 31, 2020, primarily due to stronger than expected performance and the increased probability of achievement during the remaining performance periods. For the three months ended March 31, 2020, we recognized $11.1 million of expense within research and development expenses in our consolidated statement of operations. Specific to the Small Giant acquisition, the estimated fair value of the contingent consideration obligation decreased from $242.0 million as of December 31, 2019 to $229.3 million as of March 31, 2020. The decrease was driven by a $121.6 million payment to the former owners of Small Giant for its performance during the first contingent consideration period, partially offset by stronger than expected performance and the increased probability of achievement during the remaining performance periods. Accordingly, for the three months ended March 31, 2020, we recognized $108.9 million of expense within research and development expenses in our consolidated statement of operations. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net Property and equipment, net consists of the following (in thousands): March 31, December 31, 2020 2019 Computer equipment $ 25,469 $ 25,029 Software 33,915 33,932 Furniture and fixtures 12,840 11,567 Leasehold improvements 24,719 19,964 Total property and equipment, gross $ 96,943 $ 90,492 Less: Accumulated depreciation (65,581 ) (64,666 ) Total property and equipment, net $ 31,362 $ 25,826 The following represents our property and equipment, net by location (in thousands): March 31, December 31, 2020 2019 United States $ 22,147 $ 16,133 India 4,756 5,255 United Kingdom 3,086 3,223 All other countries 1,373 1,215 Total property and equipment, net $ 31,362 $ 25,826 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases Lessee Arrangements As of March 31, 2020, future lease payments related to our operating leases were as follows (in thousands): Year ending December 31: Operating Leases Remaining 2020 $ 16,335 2021 21,025 2022 17,289 2023 16,361 2024 14,109 2025 13,005 Thereafter 77,950 Total lease payments 176,074 Less: Imputed interest (33,995 ) Total lease liability balance $ 142,079 During the third quarter of 2018, we executed an assignment of our Oxford office lease associated with our fourth quarter 2017 restructuring plan. The original lease term ends in November 2022. All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent to be used by the landlord in the event of the assignee’s non-performance. In connection with the assignment, the Company became secondarily liable in the event the assignee is unable to perform under the lease. Based on the current rent and related payments, the maximum exposure to the Company is estimated to be $1.6 million as of March 31, 2020. However, the lease is subject to periodic rate reviews which allow the landlord to make market adjustments to the rent and other related payments and accordingly, the maximum exposure may be greater than this amount. As of March 31, 2020, the estimated fair value of this guarantee is not material. Lessor Arrangements Prior to July 1, 2019, the Company owned the building where its San Francisco headquarters is located and had operating lease arrangements with various third-party tenants for the remaining available office space. However, in connection with the sale and leaseback of the building, effective July 1, 2019 (the “Building Sale”), the Company sold all preexisting leases between the Company and its tenants to the buyer. As a result, all lessor related assets and liabilities were de-recognized upon closing. For the three months ended March 31, 2019 the components of lease income were as follows, which were recorded within other income (expense), net in our consolidated statement of operations (in thousands): Three Months Ended March 31, 2019 Operating lease income $ 4,621 Variable lease income 498 Total lease income $ 5,119 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 (in thousands): Goodwill – December 31, 2019 (1) $ 1,460,933 Additions — Foreign currency translation adjustments (2) (24,628 ) Goodwill – March 31, 2020 (1) $ 1,436,305 (1) (2) The details of our acquisition-related intangible assets as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, 2020 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 411,003 $ (238,841 ) $ 172,162 Trademarks, branding and domain names 63,622 (20,276 ) 43,346 Noncompetition agreements 8,390 (8,140 ) 250 Total $ 483,015 $ (267,257 ) $ 215,758 December 31, 2019 Gross Value Accumulated Amortization Net Book Developed technology $ 415,466 $ (228,008 ) $ 187,458 Trademarks, branding and domain names 63,800 (18,587 ) 45,213 Noncompetition agreements 8,390 (8,056 ) 334 Total $ 487,656 $ (254,651 ) $ 233,005 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of March 31, 2020 and December 31, 2019. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to intangible assets was $16.4 million and $17.6 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the weighted-average remaining useful lives of our acquired intangible assets are 3.3 years for developed technology, 5.5 years for trademarks, branding and domain names, 0.7 years for noncompetition agreements and 3.7 years in total, for all acquired intangible assets. As of March 31, 2020, future amortization expense related to our intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2020 $ 49,003 2021 57,881 2022 50,660 2023 40,161 2024 6,693 2025 5,240 Total $ 209,638 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes During the three months ended March 31, 2020, the provision for income taxes was $8.5 million and during the three months ended March 31, 2019, the benefit from income taxes was $10.3 million, resulting in a net change of $18.8 million. The net change was primarily attributable to a net increase in income tax from post-acquisition statutory operating profit from Small Giant and Gram Games and a change in our jurisdictional mix of earnings. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Convertible Senior Notes On June 14, 2019, we issued $690.0 million aggregate principal amount of 0.25% Convertible Senior Notes due 2024 (the “Notes”), including the initial purchasers’ exercise in full of their option to purchase an additional $90.0 million principal amount of the Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act. The net proceeds from the issuance of the Notes was $672.2 million after deducting transaction costs. The Notes are governed by an indenture (the “Indenture”) between us, as the issuer, and Wells Fargo Bank, National Association, as trustee. The Notes are senior unsecured obligations and rank senior in right of payment to all of our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to all of our existing and future liabilities that are not so subordinated; effectively junior to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities of our current or future subsidiaries (including trade payables). The Indenture does not contain any financial covenants. The Notes mature on June 1, 2024 unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. The Notes have an initial conversion rate of 120.3695 shares of our Class A common stock per $1,000 principal amount of Notes, which is equal to an initial conversion price of approximately $8.31 per share of our Class A common stock and is subject to adjustment in certain events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of their Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest. Prior to the close of business on the business day immediately preceding March 1, 2024, the Notes will be convertible only under the following circumstances: • during any calendar quarter, if the last reported sale price of our Class A common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of Notes for such trading day was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; • if we call the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events described in the Indenture. On or after March 1, 2024, holders of the Notes may convert all or any portion of their Notes regardless of the foregoing conditions. Upon any conversion, holders will receive cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. The Company may not redeem the Notes prior to June 5, 2022. On or after June 5, 2022, the Company may redeem for cash all or any portion of the Notes, at its option, if the last reported sale price of our Class A common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading-day period ending on the immediately preceding date when the Company provides a notice of redemption. The redemption price is equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest. As of March 31, 2020, the conditions allowing holders of the Notes to convert have not been met and therefore the Notes are not yet convertible. We separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $572.0 million liability component by calculating the present value of the cash flows using an effective interest rate of 4.1%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $118.0 million and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs initially attributable to the liability component were $14.8 million and are being amortized to interest expense using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $3.1 million and are accounted for consistently with the equity component of the debt. The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): March 31, December 31, 2020 2019 Liability component: Principal $ 690,000 $ 690,000 Unamortized debt discount (100,706 ) (106,224 ) Unamortized transaction costs (12,628 ) (13,320 ) Net carrying amount $ 576,666 $ 570,456 Equity component, net of transaction costs $ 114,938 $ 114,938 Interest expense recognized related to the Notes was as follows (in thousands): Three Months Ended March 31, 2020 Contractual interest expense $ 431 Amortization of debt discount 5,518 Amortization of transaction costs 692 Total $ 6,641 As of March 31, 2020, the estimated fair value of the Notes was $717.9 million. We estimated the fair value based on the quoted market prices in an inactive market on the last trading day of the reporting period, which are considered Level 2 inputs. Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (collectively, the “Capped Calls”). The Capped Calls have an initial strike price of approximately $8.31 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $12.54 per share, subject to certain adjustments. The Capped Calls are generally intended to reduce or offset the potential economic dilution of approximately 83.1 million shares to our Class A common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Calls are considered indexed to our own stock and are equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $73.8 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. Convertible Senior Notes and Capped Call Transactions – Impact on Earnings per Share The 83.1 million shares underlying the conversion option of the Notes will not have an impact on our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $8.31 per share, as we intend and have the ability to settle the principal amount of the Notes in cash upon conversion. The Company computes the potentially dilutive impact of the shares of Class A common stock related to the Notes using the treasury stock method. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method. Credit Facility In December 2018, the Company entered into a credit agreement (the “Credit Agreement”) with Bank of America, N.A. that provides for a three-year At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (the “Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a one-month interest period plus 1.00%. The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio. As of March 31, 2020, we had no amounts outstanding under the Credit Facility. Debt issuance costs associated with the Credit Facility were capitalized and are amortized on a straight-line basis over the three-year |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 10. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Accrued accounts payable $ 52,805 $ 41,443 Accrued compensation liability 23,031 52,495 Contingent consideration payable 190,300 180,000 Accrued payable from acquisitions 30,000 30,000 Value-added taxes payable 2,477 2,857 Other current liabilities 9,772 8,010 Total other current liabilities $ 308,385 $ 314,805 Our accrued compensation liability represents employee bonus and other payroll withholding expenses, while 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): March 31, December 31, 2020 2019 Contingent consideration obligation $ 128,200 $ 140,100 Uncertain tax positions, including interest and penalties 15,061 15,851 Other non-current liabilities 2,305 2,462 Total other non-current liabilities $ 145,566 $ 158,413 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity We recorded stock-based compensation expense related to grants of employee stock options, restricted stock units (“RSUs”) and performance and market-based awards in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 438 $ 284 Research and development 10,703 11,715 Sales and marketing 3,063 2,487 General and administrative 6,261 4,287 Total stock-based compensation expense $ 20,465 $ 18,773 Stock Option Activity The following table shows stock option activity for the three months ended March 31, 2020 (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, 2019 31,204 $ 3.24 $ 89,786 7.19 Granted 1,633 6.55 Forfeited, expired and cancelled (1 ) 2.80 Exercised (1,506 ) 2.92 Balance as of March 31, 2020 31,330 $ 3.43 $ 107,133 7.13 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 Months Ended March 31, 2020 Expected term, in years 6 Risk-free interest rates 0.8 % Expected volatility 36 % Dividend yield — Weighted-average estimated fair value of options granted $ 2.35 RSU Activity The following table shows a summary of RSU activity for the three months ended March 31, 2020, which includes performance and market-based awards (in thousands, except weighted-average grant date fair value): Outstanding RSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2019 40,188 $ 4.23 $ 245,951 Granted 16,083 6.84 Vested (5,512 ) 4.22 Forfeited (935 ) 4.30 Unvested as of March 31, 2020 49,824 $ 5.08 $ 341,294 Performance- B ased RSUs (the “Performance RSUs”) On March 15, 2020, the Company granted performance-based awards to certain executive officers. The number of shares earned will range from 0% to 120% of the target number of shares granted, depending on actual operating cash flows for the year ended December 31, 2020 relative to pre-established thresholds. Shares earned (if any) based on the level of achievement will vest over a period of four years following the grant date, with 25% vesting on the one year anniversary of the grant date and the remaining quarterly thereafter, subject to continued service by the executives. The target number of shares granted totaled 0.6 million. The Company recognizes stock-based compensation expense for the Performance RSUs using the accelerated attribution method over the requisite service period. The amount of stock-based compensation is determined based on the probability of achievement of the pre-established thresholds at each reporting period. If necessary, at each reporting period, the Company records a cumulative catch-up adjustment to reflect any revised estimates regarding the probability of achievement. Market-Based RSUs (the “Market RSUs”) On March 15, 2020, the Company granted market-based awards to its executive officers, with two separate prescribed measurement periods. Both prescribed measurement periods began on the grant date, with the first prescribed measurement period ending on December 31, 2021 (the “Two-Year Market RSUs”) and the second period ending on December 31, 2022 (the “Three-Year Market RSUs”). The number of RSUs earned (if any) will range from 0% to 150% of the target number of shares, depending on actual achievement of specific tiers for Zynga’s total shareholder return (“TSR”) relative to the TSR of companies comprising the S&P MidCap 400 Index over the prescribed measurement periods. If Zynga’s TSR is negative during any measurement period, the number of RSUs earned is capped at 100% of the target number of shares for that prescribed measurement period. Any shares earned will vest in three equal annual increments, beginning on March 15 of the year following the conclusion of each prescribed measurement period, subject to continued service by the executives. The target number of shares totaled 2.2 million each for the Two-Year Market RSUs and the Three-Year Market RSUs, for a total of 4.4 million target shares. The Company recognizes stock-based compensation expense for the Market RSUs using the accelerated attribution method over the requisite service period. The amount of stock-based compensation was determined based on the estimated grant date fair value, calculated using a Monte Carlo simulation that considers the probability of achievement of the specific tiers on each of the Market RSUs. Based upon the Monte Carlo simulation, the estimated per share grant date fair value of the Two-Year Market RSUs and Three-Year Market RSUs was $7.37 and $7.41, respectively. The significant assumptions used in estimating the grant date fair value of each award include an expected volatility of 27%, a risk-free interest rate ranging from 0.5% to 0.6% and an expected dividend yield of zero. The estimated grant date fair value is not subsequently revised to consider anticipated or actual achievement during the prescribed measurement periods. Stock Repurchases In April 2018, a share repurchase program was authorized for up to $200.0 million of our outstanding Class A common stock (the “2018 Share Repurchase Program”). The timing and amount of any stock repurchase 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 2018 Share Repurchase Program is authorized to remain in effect until April 2022 and 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. During the three months ended March 31, 2020, no share repurchases were made under the 2018 Share Repurchase Program. As of March 31, 2020, we had $173.8 million remaining under the 2018 Share Repurchase Program. All of our stock repurchases were made through open market purchases under Rule 10b5-1 plans and subsequently retired. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities Total Balance as of December 31, 2019 $ (126,214 ) $ 279 $ (125,935 ) Other comprehensive income (loss) before reclassifications (28,915 ) (1,041 ) (29,956 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (28,915 ) (1,041 ) (29,956 ) Balance as of March 31, 2020 $ (155,129 ) $ (762 ) $ (155,891 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 13. Net Income (Loss) Per Share of Common Stock Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. 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 RSUs, unvested performance and market-based RSUs 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 March 31, 2020 2019 Basic and Diluted Net income (loss) attributable to common stockholders $ (103,925 ) $ (128,828 ) Weighted-average common shares outstanding 952,502 926,230 Net income (loss) per share attributable to common stockholders $ (0.11 ) $ (0.14 ) The following weighted-average employee equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2020 2019 Stock options and employee stock purchase plan 30,857 36,713 RSUs (including performance and market-based) 40,782 50,298 Total 71,639 87,011 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. 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 March 31, 2020, 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 2020 $ 10,250 2021 19,250 2022 — 2023 10,000 Thereafter — Total $ 39,500 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of March 31, 2020, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2020 $ 15,627 2021 13,209 2022 1,341 Thereafter — Total $ 30,177 Excluded from tables above is our uncertain income tax position liability of $15.1 million, which includes interest and penalties, as the Company cannot make a reasonably reliable estimate of the period of cash settlement. 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. On September 12, 2019, we announced that an incident had occurred that may have involved player data (the “Data Incident”). Upon our discovery of the Data Incident, an investigation immediately commenced and advisors and third-party forensics firms were retained to assist. Our current belief is that, during the third quarter of 2019, outside hackers illegally accessed certain player account information and other Zynga information, and that no financial information was accessed. We have provided notifications to players, investors, regulators and other third parties, where we believe notice was required or appropriate. Since March 3, 2020, three consumer class action complaints have been filed in connection with the Data Incident in federal court for the Northern District of California. On March 3, 2020, two plaintiffs – minor “I.C.” (acting through his parent Nasim Chaudhri) and Amy Gitre—filed a class action complaint arising out of the Data Incident (the “ Chaudhri ” complaint), generally alleging that Zynga failed to reasonably safeguard certain player information, including names, addresses, email addresses, passwords and more; failed to provide them with timely notification of the breach; and made unlawful representations over the safety and security of plaintiffs’ personal information. Plaintiffs allege claims against Zynga under several state law theories, including negligence, and unjust enrichment. The Chaudhri plaintiffs seek monetary relief and damages. Zynga’s response to the complaint is due May 8, 2020. The Company intends to defend itself vigorously against the claims asserted. On March 23, 2020, plaint iffs Carol Johnson and Lisa Thomas (the “ Johnson ” complaint) filed a second class action complaint in the Northern District of California federal court. Similar to the Chaudhri complaint, the Johnson plaintiffs—residents of Missouri and Wisconsin—assert Zynga failed to adequately protect their personally identifiable player information (“PII”), including names, email addresses, passwords, password reset tokens, and phone numbers (among other items). Plaintiffs contend that, despite Zynga’s representations in its privacy policy that sensitive player information would be adequately protected, plaintiffs’ PII was improperly stored in plain text formatting, and inadequate encryption methods were used to s tore sensitive password information. Plaintiffs allege that the lack of adequate security measures caused them harm as a result of the Data Incident, and they assert numerous state law claims against Zynga, including claims for negligence, negligence per se, unjust enrichment, and declaratory relief. The Johnson plaintiffs additionally assert claims for breach of confidence, breach of contract and implied contract, violations of California’s Unfair Competition Law (“UCL”, CGL 17200, et seq.), and state-sp ecific violations of Missouri’s Merchandising Practices Act and Wisconsin’s Deceptive Trade Practices Act. Plaintiffs seek damages, as well as declaratory and injunctive relief. Zynga’s response to the Johnson complaint is due May 26, 2020. The Company intends to defend itself vigorously against all claims. On April 15, 2020, plaintiffs Joseph Martinez IV and Daniel Petro, residents of Colorado and Iowa, filed a third class action complaint in the Northern District of California (the “ Martinez Chaudhri Johnson Martinez Johnson Chaudhri Martinez Martinez Martinez Chaudhri Johnson At this time, we are unable to reasonably estimate the loss or range of loss, if any, arising from any of the above-referenced matters. 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 Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 interim consolidated financial statements include the operations of the Company and its owned subsidiaries. All 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, 2019. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim consolidated balance sheets as of March 31, 2020, the interim consolidated statements of operations, statements of comprehensive income (loss), statements of stockholders’ equity and statements of cash flows for the three months ended March 31, 2020 and 2019 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 months ended March 31, 2020 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, the discount rate used in discounting our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes” Issued And Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” ASC Topic 350-40, Internal-Use Software |
Debt | We separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $572.0 million liability component by calculating the present value of the cash flows using an effective interest rate of 4.1%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $118.0 million and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs initially attributable to the liability component were $14.8 million and are being amortized to interest expense using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $3.1 million and are accounted for consistently with the equity component of the debt. |
Earnings Per Share | 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 RSUs, unvested performance and market-based RSUs 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. |
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 C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in thousands): Three Months Ended March 31, 2020 2019 Online game: Mobile $ 328,671 $ 182,833 Other (1) 15,689 17,331 Online game total $ 344,360 $ 200,164 Advertising and other: Mobile 58,318 63,260 Other (1) 1,089 1,979 Advertising and other total $ 59,407 $ 65,239 Total revenue $ 403,767 $ 265,403 (1) Includes web revenue for online game and web advertising revenue and other revenue for advertising and other The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Three Months Ended March 31, 2020 2019 United States $ 243,250 $ 172,061 All other countries (1) 160,517 93,342 Total revenue $ 403,767 $ 265,403 (1) No foreign country exceeded 10% of our total revenue for any periods presented. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Short-Term and Long-Term Investments | Debt Securities The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term and long-term debt securities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 587,718 $ 129 $ (432 ) $ 587,415 Foreign certificates of deposit and time deposits 77,847 — — 77,847 Total $ 665,565 $ 129 $ (432 ) $ 665,262 Long-term debt securities: Corporate debt securities $ 118,770 $ 154 $ (671 ) $ 118,253 U.S. government and government agency debt securities 54,994 58 — 55,052 Total $ 173,764 $ 212 $ (671 ) $ 173,305 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814,817 $ 148 $ (19 ) $ 814,946 U.S. government and government agency debt securities 25,000 — — 25,000 Foreign certificates of deposit and time deposits 53,786 — — 53,786 Total $ 893,603 $ 148 $ (19 ) $ 893,732 Long-term debt securities: Corporate debt securities $ 108,171 $ 118 $ (1 ) $ 108,288 U.S. government and government agency debt securities 66,979 33 — 67,012 Total $ 175,150 $ 151 $ (1 ) $ 175,300 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities as of March 31, 2020 and December 31, 2019 among the three levels of the fair value hierarchy are as follows (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 246,052 $ — $ — $ 246,052 Corporate debt securities — 29,990 — 29,990 Foreign certificates of deposit and time deposits — 4,786 — 4,786 Short-term investments: Corporate debt securities — 587,415 — 587,415 Foreign certificates of deposit and time deposits — 77,847 — 77,847 Mutual funds — 43,251 — 43,251 Long-term investments: Corporate debt securities — 118,253 — 118,253 U.S. government and government agency debt securities — 55,052 — 55,052 Total financial assets $ 246,052 $ 916,594 $ — $ 1,162,646 Liabilities: Contingent consideration $ — $ — $ 318,500 $ 318,500 Total financial liabilities $ — $ — $ 318,500 $ 318,500 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 625 $ — $ — $ 625 Corporate debt securities — 151,770 — 151,770 Foreign certificates of deposit and time deposits — 3,260 — 3,260 Short-term investments: Corporate debt securities — 814,946 — 814,946 U.S. government and government agency debt securities — 25,000 — 25,000 Foreign certificates of deposit and time deposits — 53,786 — 53,786 Mutual funds — 44,441 — 44,441 Long-term investments: Corporate debt securities — 108,288 — 108,288 U.S. government and government agency debt securities — 67,012 — 67,012 Total financial assets $ 625 $ 1,268,503 $ — $ 1,269,128 Liabilities: Contingent consideration $ — $ — $ 320,100 $ 320,100 Total financial liabilities $ — $ — $ 320,100 $ 320,100 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the three months ended March 31, 2020 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2019 $ 320,100 Additions — Fair value adjustments 120,000 Payments (121,600 ) Contingent consideration obligation – March 31, 2020 $ 318,500 |
Significant Unobservable Inputs Used in Measuring the Fair Value | The table below outlines the significant unobservable inputs used in estimating the fair value measurements of the Company's contingent consideration obligations at March 31, 2020, weighted by the relative fair value of each annual period’s obligation to the total obligation. March 31, 2020 Range Weighted Average Bookings growth rates 0.3% – 26.2% 12.8% Bookings volatility 15.0% – 19.0% 17.9% Asset volatility 38.0% – 41.0% 38.8% Net cash flow margins 24.5% – 36.5% 33.2% Discount rates 10.5% – 14.0% 11.5% |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): March 31, December 31, 2020 2019 Computer equipment $ 25,469 $ 25,029 Software 33,915 33,932 Furniture and fixtures 12,840 11,567 Leasehold improvements 24,719 19,964 Total property and equipment, gross $ 96,943 $ 90,492 Less: Accumulated depreciation (65,581 ) (64,666 ) Total property and equipment, net $ 31,362 $ 25,826 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): March 31, December 31, 2020 2019 United States $ 22,147 $ 16,133 India 4,756 5,255 United Kingdom 3,086 3,223 All other countries 1,373 1,215 Total property and equipment, net $ 31,362 $ 25,826 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Lease Payments Related to Our Operating Leases | As of March 31, 2020, future lease payments related to our operating leases were as follows (in thousands): Year ending December 31: Operating Leases Remaining 2020 $ 16,335 2021 21,025 2022 17,289 2023 16,361 2024 14,109 2025 13,005 Thereafter 77,950 Total lease payments 176,074 Less: Imputed interest (33,995 ) Total lease liability balance $ 142,079 |
Schedule of Components of Lease Income | For the three months ended March 31, 2019 the components of lease income were as follows, which were recorded within other income (expense), net in our consolidated statement of operations (in thousands): Three Months Ended March 31, 2019 Operating lease income $ 4,621 Variable lease income 498 Total lease income $ 5,119 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill for the three months ended March 31, 2020 (in thousands): Goodwill – December 31, 2019 (1) $ 1,460,933 Additions — Foreign currency translation adjustments (2) (24,628 ) Goodwill – March 31, 2020 (1) $ 1,436,305 (1) (2) |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, 2020 Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 411,003 $ (238,841 ) $ 172,162 Trademarks, branding and domain names 63,622 (20,276 ) 43,346 Noncompetition agreements 8,390 (8,140 ) 250 Total $ 483,015 $ (267,257 ) $ 215,758 December 31, 2019 Gross Value Accumulated Amortization Net Book Developed technology $ 415,466 $ (228,008 ) $ 187,458 Trademarks, branding and domain names 63,800 (18,587 ) 45,213 Noncompetition agreements 8,390 (8,056 ) 334 Total $ 487,656 $ (254,651 ) $ 233,005 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of March 31, 2020, future amortization expense related to our intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: Remaining 2020 $ 49,003 2021 57,881 2022 50,660 2023 40,161 2024 6,693 2025 5,240 Total $ 209,638 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Notes | The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): March 31, December 31, 2020 2019 Liability component: Principal $ 690,000 $ 690,000 Unamortized debt discount (100,706 ) (106,224 ) Unamortized transaction costs (12,628 ) (13,320 ) Net carrying amount $ 576,666 $ 570,456 Equity component, net of transaction costs $ 114,938 $ 114,938 |
Schedule of Interest Expense Recognized Related to Notes | Interest expense recognized related to the Notes was as follows (in thousands): Three Months Ended March 31, 2020 Contractual interest expense $ 431 Amortization of debt discount 5,518 Amortization of transaction costs 692 Total $ 6,641 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Accrued accounts payable $ 52,805 $ 41,443 Accrued compensation liability 23,031 52,495 Contingent consideration payable 190,300 180,000 Accrued payable from acquisitions 30,000 30,000 Value-added taxes payable 2,477 2,857 Other current liabilities 9,772 8,010 Total other current liabilities $ 308,385 $ 314,805 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Contingent consideration obligation $ 128,200 $ 140,100 Uncertain tax positions, including interest and penalties 15,061 15,851 Other non-current liabilities 2,305 2,462 Total other non-current liabilities $ 145,566 $ 158,413 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (RSUs) and Performance and Market Based Awards | We recorded stock-based compensation expense related to grants of employee stock options, restricted stock units (“RSUs”) and performance and market-based awards in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 438 $ 284 Research and development 10,703 11,715 Sales and marketing 3,063 2,487 General and administrative 6,261 4,287 Total stock-based compensation expense $ 20,465 $ 18,773 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the three months ended March 31, 2020 (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, 2019 31,204 $ 3.24 $ 89,786 7.19 Granted 1,633 6.55 Forfeited, expired and cancelled (1 ) 2.80 Exercised (1,506 ) 2.92 Balance as of March 31, 2020 31,330 $ 3.43 $ 107,133 7.13 |
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 Months Ended March 31, 2020 Expected term, in years 6 Risk-free interest rates 0.8 % Expected volatility 36 % Dividend yield — Weighted-average estimated fair value of options granted $ 2.35 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of RSU activity for the three months ended March 31, 2020, which includes performance and market-based awards (in thousands, except weighted-average grant date fair value): Outstanding RSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2019 40,188 $ 4.23 $ 245,951 Granted 16,083 6.84 Vested (5,512 ) 4.22 Forfeited (935 ) 4.30 Unvested as of March 31, 2020 49,824 $ 5.08 $ 341,294 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities Total Balance as of December 31, 2019 $ (126,214 ) $ 279 $ (125,935 ) Other comprehensive income (loss) before reclassifications (28,915 ) (1,041 ) (29,956 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (28,915 ) (1,041 ) (29,956 ) Balance as of March 31, 2020 $ (155,129 ) $ (762 ) $ (155,891 ) |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 Basic and Diluted Net income (loss) attributable to common stockholders $ (103,925 ) $ (128,828 ) Weighted-average common shares outstanding 952,502 926,230 Net income (loss) per share attributable to common stockholders $ (0.11 ) $ (0.14 ) |
Shares Excluded from Calculation of Diluted Net Income (Loss) per Share | The following weighted-average employee equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended March 31, 2020 2019 Stock options and employee stock purchase plan 30,857 36,713 RSUs (including performance and market-based) 40,782 50,298 Total 71,639 87,011 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, 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 2020 $ 10,250 2021 19,250 2022 — 2023 10,000 Thereafter — Total $ 39,500 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts primarily for hosting of data systems and other services. As of March 31, 2020, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: Remaining 2020 $ 15,627 2021 13,209 2022 1,341 Thereafter — Total $ 30,177 |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Jan. 01, 2019 | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||
Initial offering period | December 2011 | |
ASU 2016-13 [Member] | ||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||
Cumulative-effect adjustment to retained earning | $ 0.4 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 403,767 | $ 265,403 |
Mobile Online Game [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 328,671 | 182,833 |
Other Online game [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 15,689 | 17,331 |
Online Game [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 344,360 | 200,164 |
Mobile Advertising and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 58,318 | 63,260 |
Web Advertising and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,089 | 1,979 |
Advertising and Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 59,407 | $ 65,239 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 403,767 | $ 265,403 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 243,250 | 172,061 |
All Other Countries [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 160,517 | $ 93,342 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Current deferred revenue recognized | $ 236.1 | |
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 | |
Durable Virtual Items [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Estimated weighted average life of product | 10 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 | 23.00% | 34.00% |
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Durable Virtual Items [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of online game revenue | 77.00% | 66.00% |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Detail1) | Mar. 31, 2020 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Expected length of unsatisfaction of performance obligations | 1 year |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Short-Term and Long-Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 665,565 | $ 893,603 |
Gross Unrealized Gains | 129 | 148 |
Gross Unrealized Losses | (432) | (19) |
Aggregate Fair Value | 665,262 | 893,732 |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 173,764 | 175,150 |
Gross Unrealized Gains | 212 | 151 |
Gross Unrealized Losses | (671) | (1) |
Aggregate Fair Value | 173,305 | 175,300 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 587,718 | 814,817 |
Gross Unrealized Gains | 129 | 148 |
Gross Unrealized Losses | (432) | (19) |
Aggregate Fair Value | 587,415 | 814,946 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 118,770 | 108,171 |
Gross Unrealized Gains | 154 | 118 |
Gross Unrealized Losses | (671) | (1) |
Aggregate Fair Value | 118,253 | 108,288 |
Foreign Certificates of Deposit and Time Deposits [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 77,847 | 53,786 |
Aggregate Fair Value | 77,847 | 53,786 |
U S Goverment And Goverment Agency Debt Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25,000 | |
Aggregate Fair Value | 25,000 | |
U S Goverment And Goverment Agency Debt Securities [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 54,994 | 66,979 |
Gross Unrealized Gains | 58 | 33 |
Aggregate Fair Value | $ 55,052 | $ 67,012 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Unrealized losses related to debt securities | $ 1,100,000 | ||
Fair value | 239,800,000 | ||
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | 0 | $ 0 | |
Net Loss [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net loss recognized, mutual fund equity investment | $ 900,000 | $ 0 | |
Maximum [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale short-term investments period of contractual maturities | 1 year | ||
Available-for-sale long-term investments period of contractual maturities | 2 years | ||
Unrealized losses related to debt securities | $ 100,000 | ||
Minimum [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale long-term investments period of contractual maturities | 1 year |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 1,162,646 | $ 1,269,128 |
Liabilities Fair Value Disclosure Recurring | 318,500 | 320,100 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 318,500 | 320,100 |
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 | 246,052 | 625 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 587,415 | 814,946 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 118,253 | 108,288 |
Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 29,990 | 151,770 |
Foreign Certificates Of Deposit And Time [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 77,847 | 53,786 |
Foreign Certificates Of Deposit And Time [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 4,786 | 3,260 |
Mutual Fund | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 43,251 | 44,441 |
US Government Agencies Debt Securities | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 25,000 | |
US Government Agencies Debt Securities | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 55,052 | 67,012 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 246,052 | 625 |
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 | 246,052 | 625 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 916,594 | 1,268,503 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 587,415 | 814,946 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 118,253 | 108,288 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 29,990 | 151,770 |
Fair Value, Inputs, Level 2 [Member] | Foreign Certificates Of Deposit And Time [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 77,847 | 53,786 |
Fair Value, Inputs, Level 2 [Member] | Foreign Certificates Of Deposit And Time [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 4,786 | 3,260 |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 43,251 | 44,441 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 25,000 | |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 55,052 | 67,012 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 318,500 | 320,100 |
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 | $ 318,500 | $ 320,100 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation - December 31, 2019 | $ 320,100 |
Fair value adjustments | 120,000 |
Payments | (121,600) |
Contingent consideration obligation - March 31, 2020 | $ 318,500 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Gram Games [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration payable, total years | 3 years | |
Contingent consideration obligation | $ 89.2 | $ 78.1 |
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 | 11.1 | |
Small Giant [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligation | 229.3 | $ 242 |
Business Combination, Contingent Consideration, Liability | 121.6 | |
Small Giant [Member] | Research and Development Expense [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligation, expense recognized | $ 108.9 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Measuring the Fair Value (Detail) | Mar. 31, 2020 |
Bookings Growth Rates [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 0.3 |
Bookings Growth Rates [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 26.2 |
Bookings Growth Rates [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 12.8 |
Discount Rate [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 10.5 |
Discount Rate [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 14 |
Discount Rate [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 11.5 |
Asset Volatility [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 38 |
Asset Volatility [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 41 |
Asset Volatility [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 38.8 |
Bookings Volatility [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 15 |
Bookings Volatility [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 19 |
Bookings Volatility [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 17.9 |
Net Cash Flows Margin [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 24.5 |
Net Cash Flows Margin [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 36.5 |
Net Cash Flows Margin [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Significant Unobservable Inputs | 33.2 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 96,943 | $ 90,492 |
Less: Accumulated depreciation | (65,581) | (64,666) |
Total property and equipment, net | 31,362 | 25,826 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 25,469 | 25,029 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 33,915 | 33,932 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 12,840 | 11,567 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 24,719 | $ 19,964 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 31,362 | $ 25,826 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 22,147 | 16,133 |
India [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 4,756 | 5,255 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,086 | 3,223 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,373 | $ 1,215 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments Related to Our Operating Leases (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Remaining 2020 | $ 16,335 |
2021 | 21,025 |
2022 | 17,289 |
2023 | 16,361 |
2024 | 14,109 |
2025 | 13,005 |
Thereafter | 77,950 |
Total lease payments | 176,074 |
Less: Imputed interest | (33,995) |
Total lease liability balance | $ 142,079 |
Leases - Additional Information
Leases - Additional Information (Detail) - Q4 2017 Restructuring Plan [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lessor Lease Description [Line Items] | |
Lease term expiration | 2022-11 |
Terms of assignment | All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent to be used by the landlord in the event of the assignee’s non-performance. |
Estimated maximum exposure of the guarantee | $ 1.6 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Income (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease income | $ 4,621 |
Variable lease income | 498 |
Total lease income | $ 5,119 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill Roll Forward | |
Goodwill, beginning balance | $ 1,460,933 |
Foreign currency translation adjustments | (24,628) |
Goodwill, ending balance | $ 1,436,305 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill Roll Forward | ||
Accumulated impairment losses | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 483,015 | $ 487,656 |
Accumulated Amortization | (267,257) | (254,651) |
Net Book Value | 215,758 | 233,005 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 411,003 | 415,466 |
Accumulated Amortization | (238,841) | (228,008) |
Net Book Value | 172,162 | 187,458 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 63,622 | 63,800 |
Accumulated Amortization | (20,276) | (18,587) |
Net Book Value | 43,346 | 45,213 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,390 | 8,390 |
Accumulated Amortization | (8,140) | (8,056) |
Net Book Value | $ 250 | $ 334 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 8 months 12 days | ||
Amortization Expense | $ 16.4 | $ 17.6 | |
Trademarks, Branding and Domain Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 6.1 | $ 6.1 | |
Weighted-average remaining useful lives of acquired intangible assets | 5 years 6 months | ||
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 3 months 18 days | ||
Noncompetition Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 8 months 12 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
Remaining 2020 | $ 49,003 |
2021 | 57,881 |
2022 | 50,660 |
2023 | 40,161 |
2024 | 6,693 |
2025 | 5,240 |
Total | $ 209,638 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision for (benefit from) income taxes | $ 8,511 | $ (10,252) |
Increase in income tax expense benefit | $ 18,800 |
Debt - Additional Information (
Debt - Additional Information (Detail) shares in Thousands, $ in Thousands | Jun. 14, 2019USD ($)d$ / shares | Dec. 31, 2018USD ($) | Mar. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019shares | Dec. 31, 2019USD ($) | Sep. 30, 2019 | Jul. 01, 2019USD ($) |
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 690,000 | $ 690,000 | $ 690,000 | |||||||
Debt instrument carrying amount of equity component conversion option | 114,938 | $ 114,938 | $ 114,938 | |||||||
Transaction costs attributable to the liability component | 14,800 | |||||||||
Transaction costs attributable to the equity component | $ 3,100 | |||||||||
Anti-dilutive securities underlying conversion option | shares | 71,639 | 87,011 | ||||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit facility expiration period | 3 years | |||||||||
Intial aggregate principal borrowing capacity amount | $ 200,000 | |||||||||
Debt instrument interest rate, description | At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (the “Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a one-month interest period plus 1.00%. | |||||||||
Debt instrument commitment fee, description | The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio. | |||||||||
Line of credit facility amount outstanding | $ 0 | |||||||||
Debt capitalized, amortize period | 3 years | |||||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | |||||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | Federal Funds Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | |||||||||
Bank of America, N.A. [Member] | Sale Agreement [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit facility remaining borrowing capacity | $ 150,000 | |||||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.25% | |||||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | Base Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% | 0.50% | ||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.50% | |||||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.35% | |||||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | Base Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 2.00% | |||||||||
Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 8.31 | |||||||||
Initial cap price | $ / shares | 12.54 | |||||||||
Cost incurred for Capped Calls | $ 73,800 | |||||||||
Class A Common stock [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Capped calls economic dilutive potential common stock shares | shares | 83,100 | |||||||||
Class A Common stock [Member] | Conversion Senior Notes and Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Anti-dilutive securities underlying conversion option | shares | 83,100 | |||||||||
Class A Common stock [Member] | Conversion Senior Notes and Capped Call Transactions [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 8.31 | |||||||||
Convertible Senior Notes Due 2024 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 690,000 | |||||||||
Debt instrument, interest rate | 0.25% | |||||||||
Additional aggregate principal amount | $ 90,000 | |||||||||
Proceeds from the issuance of notes | $ 672,200 | |||||||||
Debt instrument maturity date | Jun. 1, 2024 | |||||||||
Debt instrument payment terms | The Notes mature on June 1, 2024 unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019 | |||||||||
Debt repurchase price percentage | 100.00% | |||||||||
Debt instrument initial carrying amount | $ 572,000 | |||||||||
Interest rate used to calculate the present value of the cash flows | 4.10% | |||||||||
Debt instrument carrying amount of equity component conversion option | $ 118,000 | |||||||||
Contractual term | 5 years | |||||||||
Convertible Senior Notes Due 2024 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument estimated fair value | $ 717,900 | |||||||||
Convertible Senior Notes Due 2024 [Member] | Class A Common stock [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial conversion rate of common stock per $1,000 principal amount | 120.3695 | |||||||||
Initial conversion price per share of common stock | $ / shares | $ 8.31 | |||||||||
Debt instrument threshold trading days to trigger conversion feature | d | 20 | |||||||||
Debt instrument threshold consecutive trading days to trigger conversion feature | d | 30 | |||||||||
Debt instrument, minimum percentage of common stock price to determine eligibility of conversion | 130.00% | |||||||||
Consecutive business trading period when trading price meets required criteria as a condition for conversion of debt | 5 days | |||||||||
Trading price percentage of product of last reported sales price as a condition for conversion of debt | 98.00% | |||||||||
Debt instrument redemption start date | Jun. 5, 2022 | |||||||||
Debt instrument redemption price percentage | 100.00% |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability and Equity Components of Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Liability component: | ||
Principal | $ 690,000 | $ 690,000 |
Unamortized debt discount | (100,706) | (106,224) |
Unamortized transaction costs | (12,628) | (13,320) |
Net carrying amount | 576,666 | 570,456 |
Equity component, net of transaction costs | $ 114,938 | $ 114,938 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Notes (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Contractual interest expense | $ 431 |
Amortization of debt discount | 5,518 |
Amortization of transaction costs | 692 |
Total | $ 6,641 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Current [Abstract] | ||
Accrued accounts payable | $ 52,805 | $ 41,443 |
Accrued compensation liability | 23,031 | 52,495 |
Contingent consideration payable | 190,300 | 180,000 |
Accrued payable from acquisitions | 30,000 | 30,000 |
Value-added taxes payable | 2,477 | 2,857 |
Other current liabilities | 9,772 | 8,010 |
Total other current liabilities | $ 308,385 | $ 314,805 |
Other Current and Non-Current_4
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Noncurrent [Abstract] | ||
Contingent consideration obligation | $ 128,200 | $ 140,100 |
Uncertain tax positions, including interest and penalties | 15,061 | 15,851 |
Other non-current liabilities | 2,305 | 2,462 |
Total other non-current liabilities | $ 145,566 | $ 158,413 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (RSUs) and Performance and Market Based Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 20,465 | $ 18,773 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 438 | 284 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 10,703 | 11,715 |
Sales and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 3,063 | 2,487 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 6,261 | $ 4,287 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 31,204 | |
Stock Options, Granted | 1,633 | |
Stock Options, Forfeited, expired and cancelled | (1) | |
Stock Options, Exercised | (1,506) | |
Stock Options Outstanding, Ending balance | 31,330 | 31,204 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 3.24 | |
Weighted Average Exercise Price, Granted | 6.55 | |
Weighted Average Exercise Price, Forfeited, expired and cancelled | 2.80 | |
Weighted Average Exercise Price, Exercised | 2.92 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 3.43 | $ 3.24 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 107,133 | $ 89,786 |
Outstanding Options, Weighted Average Contractual Term (in years) | 7 years 1 month 17 days | 7 years 2 months 8 days |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected term, in years | 6 years |
Risk-free interest rates | 0.80% |
Expected volatility | 36.00% |
Dividend yield | 0.00% |
Weighted-average estimated fair value of options granted | $ 2.35 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested Outstanding Shares, Beginning balance | 40,188 | |
Unvested Shares, Granted | 16,083 | |
Unvested Shares, Vested | (5,512) | |
Unvested Shares, Forfeited | (935) | |
Unvested Outstanding Shares, Ending balance | 49,824 | |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ 4.23 | |
Unvested Weighted Average Grant Date Fair Value, Granted | 6.84 | |
Unvested Weighted Average Grant Date Fair Value, Vested | 4.22 | |
Unvested Weighted Average Grant Date Fair Value, Forfeited | 4.30 | |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ 5.08 | |
Unvested, Aggregate Intrinsic Value of Unvested RSU | $ 341,294 | $ 245,951 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 0.80% | |
Expected volatility | 36.00% | |
Dividend yield | 0.00% | |
2018 Share Repurchase Program [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Repurchase of common stock | 0 | |
Repurchase of common stock | $ 173,800,000 | |
Minimum [Member] | Long Term Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 5.00% | |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 6.00% | |
Maximum [Member] | Class A Common stock [Member] | 2018 Share Repurchase Program [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock repurchase program, authorized amount | $ 200,000,000 | |
Performance Based RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Performance based description | vest over a period of four years following the grant date, with 25% vesting on the one year anniversary of the grant date and the remaining quarterly | |
Vesting period | 4 years | |
Vesting rights, percentage | 25.00% | |
Number of shares across all executives totaled | $ 600,000 | |
Performance Based RSUs [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of awards earned percentage | 0.00% | |
Performance Based RSUs [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of awards earned percentage | 120.00% | |
Market Condition RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility | 27.00% | |
Market Condition RSUs [Member] | Minimum [Member] | Long Term Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of awards earned percentage | 0.00% | |
Market Condition RSUs [Member] | Maximum [Member] | Long Term Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of awards earned percentage | 150.00% | |
Two-Year Market RSUs [Member] | Long Term Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares across all executives totaled | $ 2,200,000 | |
Estimated per unit grant date fair value | $ 7.37 | |
Three-Year Market RSUs [Member] | Long Term Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares across all executives totaled | $ 4,400,000 | |
Estimated per unit grant date fair value | $ 7.41 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance, Value | $ 1,975,430 | $ 1,596,610 |
Other comprehensive income (loss), net of tax | (29,956) | 6,977 |
Ending balance, Value | 1,855,579 | 1,741,729 |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance, Value | (126,214) | |
Other comprehensive income (loss) before reclassifications, net of tax | (28,915) | |
Other comprehensive income (loss), net of tax | (28,915) | |
Ending balance, Value | (155,129) | |
Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance, Value | 279 | |
Other comprehensive income (loss) before reclassifications, net of tax | (1,041) | |
Other comprehensive income (loss), net of tax | (1,041) | |
Ending balance, Value | (762) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance, Value | (125,935) | (118,439) |
Other comprehensive income (loss) before reclassifications, net of tax | (29,956) | |
Other comprehensive income (loss), net of tax | (29,956) | 6,977 |
Ending balance, Value | $ (155,891) | $ (111,462) |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic and Diluted | ||
Net income (loss) attributable to common stockholders | $ (103,925) | $ (128,828) |
Weighted-average common shares outstanding | 952,502 | 926,230 |
Net income (loss) per share attributable to common stockholders | $ (0.11) | $ (0.14) |
Net Income (Loss) Per Share o_4
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 71,639 | 87,011 |
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 | 30,857 | 36,713 |
RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 40,782 | 50,298 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2020 | $ 10,250 |
2021 | 19,250 |
2023 | 10,000 |
Total | $ 39,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2020 | $ 15,627 |
2021 | 13,209 |
2022 | 1,341 |
Total | $ 30,177 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Uncertain tax positions liability, including interest and penalties | $ 15,061 | $ 15,851 |