Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 | 1,120,181,490 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,087.2 | $ 1,364.4 |
Short-term investments | 252.6 | 208.4 |
Accounts receivable, net of allowance of $0.9 at September 30, 2021 and $0.5 at December 31, 2020 | 210 | 217.5 |
Restricted cash | 136 | |
Prepaid expenses | 58.2 | 40 |
Other current assets | 32.5 | 29.5 |
Total current assets | 1,776.5 | 1,859.8 |
Long-term investments | 2 | |
Goodwill | 3,296.6 | 3,160.8 |
Intangible assets, net | 806.3 | 838.1 |
Property and equipment, net | 26.3 | 39.3 |
Right-of-use assets | 90.3 | 131.9 |
Restricted cash | 25.2 | 136 |
Prepaid expenses | 23.4 | 21.6 |
Other non-current assets | 23.1 | 17 |
Total assets | 6,067.7 | 6,206.5 |
Current liabilities: | ||
Accounts payable | 50 | 57.2 |
Income tax payable | 63.4 | 39.6 |
Deferred revenue | 733.6 | 747.7 |
Operating lease liabilities | 17.6 | 18.5 |
Other current liabilities | 552.2 | 462.4 |
Total current liabilities | 1,416.8 | 1,325.4 |
Convertible senior notes, net | 1,330.2 | 1,289.9 |
Deferred revenue | 0.1 | 0.3 |
Deferred tax liabilities, net | 97.9 | 126.3 |
Non-current operating lease liabilities | 137.4 | 122 |
Other non-current liabilities | 78.3 | 401.1 |
Total liabilities | 3,060.7 | 3,265 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value and additional paid in capital - authorized shares: 2,020.5; shares outstanding: 1,100.2 shares as of September 30, 2021 and 1,081.6 as of December 31, 2020 | 5,418.8 | 5,276.5 |
Accumulated other comprehensive income (loss) | (75.4) | (50.7) |
Accumulated deficit | (2,336.4) | (2,284.3) |
Total stockholders’ equity | 3,007 | 2,941.5 |
Total liabilities and stockholders’ equity | $ 6,067.7 | $ 6,206.5 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 0.9 | $ 0.5 |
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,500,000 | 2,020,500,000 |
Common stock, shares outstanding | 1,100,200,000 | 1,081,600,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 704.7 | $ 503.3 | $ 2,105 | $ 1,358.8 |
Costs and expenses: | ||||
Cost of revenue | 240.8 | 235.9 | 754.8 | 561.4 |
Research and development | 143.5 | 165.9 | 394 | 591.7 |
Sales and marketing | 216.7 | 187 | 709.6 | 444.8 |
General and administrative | 49.2 | 36.1 | 122.8 | 103.5 |
Impairment related to real estate assets | 66.8 | 66.8 | ||
Total costs and expenses | 717 | 624.9 | 2,048 | 1,701.4 |
Income (loss) from operations | (12.3) | (121.6) | 57 | (342.6) |
Interest income | 1.6 | 1 | 5 | 10.2 |
Interest expense | (14.8) | (7.3) | (44.2) | (21.2) |
Other income (expense), net | (0.6) | (3.1) | (0.8) | (4.9) |
Income (loss) before income taxes | (26.1) | (131) | 17 | (358.5) |
Provision for (benefit from) income taxes | 15.6 | (8.8) | 53.9 | 17.9 |
Net income (loss) | $ (41.7) | $ (122.2) | $ (36.9) | $ (376.4) |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ (0.04) | $ (0.11) | $ (0.03) | $ (0.38) |
Diluted | $ (0.04) | $ (0.11) | $ (0.03) | $ (0.38) |
Weighted-average common shares used to compute net income (loss) per share attributable to common stockholders: | ||||
Basic | 1,097.1 | 1,076.7 | 1,090.4 | 995.6 |
Diluted | 1,097.1 | 1,076.7 | 1,090.4 | 995.6 |
Online Game [Member] | ||||
Revenue: | ||||
Total revenue | $ 571.1 | $ 436 | $ 1,715.1 | $ 1,168.6 |
Advertising and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 133.6 | $ 67.3 | $ 389.9 | $ 190.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (41.7) | $ (122.2) | $ (36.9) | $ (376.4) |
Other comprehensive income (loss), net of tax: | ||||
Change in foreign currency translation adjustment | (20.1) | 31.7 | (24.6) | 19 |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities | (0.4) | (0.1) | ||
Other comprehensive income (loss), net of tax | (20.1) | 31.3 | (24.7) | 19 |
Comprehensive income (loss) | $ (61.8) | $ (90.9) | $ (61.6) | $ (357.4) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Revision of Prior Period Change in Accounting Principle Adjustment [Member] | 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] | Accumulated Deficit [Member]Revision of Prior Period Change in Accounting Principle Adjustment [Member] |
Beginning balance, Value at Dec. 31, 2019 | $ 1,975.4 | $ (0.4) | $ 3,898.7 | $ (125.9) | $ (1,797.4) | $ (0.4) | |||||
Beginning balance, Shares at Dec. 31, 2019 | 950 | ||||||||||
Exercise of stock options and ESPP | 8.8 | 8.8 | |||||||||
Exercise of stock options and ESPP, Shares | 2.5 | ||||||||||
Vesting of RSUs, net of tax withholdings | $ (14.8) | $ (14.8) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 3.3 | ||||||||||
Stock-based compensation expense | $ 20.5 | 20.5 | |||||||||
Retirements of treasury stock | $ 14.8 | (14.8) | |||||||||
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
Net income (loss) | $ (103.9) | (103.9) | |||||||||
Other comprehensive income (loss) | (30) | (30) | |||||||||
Ending balance, Value at Mar. 31, 2020 | 1,855.6 | 3,928 | (155.9) | (1,916.5) | |||||||
Ending balance, Shares at Mar. 31, 2020 | 955.8 | ||||||||||
Beginning balance, Value at Dec. 31, 2019 | 1,975.4 | $ (0.4) | 3,898.7 | (125.9) | (1,797.4) | $ (0.4) | |||||
Beginning balance, Shares at Dec. 31, 2019 | 950 | ||||||||||
Net income (loss) | (376.4) | ||||||||||
Other comprehensive income (loss) | 19 | ||||||||||
Ending balance, Value at Sep. 30, 2020 | 2,813.4 | 5,137.4 | (106.9) | (2,217.1) | |||||||
Ending balance, Shares at Sep. 30, 2020 | 1,079 | ||||||||||
Beginning balance, Value at Mar. 31, 2020 | 1,855.6 | 3,928 | (155.9) | (1,916.5) | |||||||
Beginning balance, Shares at Mar. 31, 2020 | 955.8 | ||||||||||
Exercise of stock options and ESPP | 1.9 | 1.9 | |||||||||
Exercise of stock options and ESPP, Shares | 0.6 | ||||||||||
Vesting of RSUs, net of tax withholdings | (14.3) | (14.3) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 2.4 | ||||||||||
Stock-based compensation expense | 25.6 | 25.6 | |||||||||
Retirements of treasury stock | 14.3 | (14.3) | |||||||||
Net income (loss) | (150.3) | (150.3) | |||||||||
Other comprehensive income (loss) | 17.7 | 17.7 | |||||||||
Ending balance, Value at Jun. 30, 2020 | 1,736.2 | 3,955.5 | (138.2) | (2,081.1) | |||||||
Ending balance, Shares at Jun. 30, 2020 | 958.8 | ||||||||||
Exercise of stock options and ESPP | 5.4 | 5.4 | |||||||||
Exercise of stock options and ESPP, Shares | 1.1 | ||||||||||
Vesting of RSUs, net of tax withholdings | (13.8) | (13.8) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 2.5 | ||||||||||
Acquisition-related common stock issuance | 1,137.7 | 1,137.7 | |||||||||
Acquisition-related common stock issuance, Shares | 116.6 | ||||||||||
Stock-based compensation expense | 38.8 | 38.8 | |||||||||
Retirements of treasury stock | 13.8 | (13.8) | |||||||||
Net income (loss) | (122.2) | (122.2) | |||||||||
Other comprehensive income (loss) | 31.3 | 31.3 | |||||||||
Ending balance, Value at Sep. 30, 2020 | 2,813.4 | 5,137.4 | (106.9) | (2,217.1) | |||||||
Ending balance, Shares at Sep. 30, 2020 | 1,079 | ||||||||||
Beginning balance, Value at Dec. 31, 2020 | 2,941.5 | 5,276.5 | (50.7) | (2,284.3) | |||||||
Beginning balance, Shares at Dec. 31, 2020 | 1,081.6 | ||||||||||
Exercise of stock options and ESPP | 10.5 | 10.5 | |||||||||
Exercise of stock options and ESPP, Shares | 2.7 | ||||||||||
Vesting of RSUs, net of tax withholdings | (8.2) | (8.2) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 4.5 | ||||||||||
Stock-based compensation expense | 37.2 | 37.2 | |||||||||
Retirements of treasury stock | 8.2 | (8.2) | |||||||||
Net income (loss) | (23) | (23) | |||||||||
Other comprehensive income (loss) | (15.6) | (15.6) | |||||||||
Ending balance, Value at Mar. 31, 2021 | 2,942.4 | 5,324.2 | (66.3) | (2,315.5) | |||||||
Ending balance, Shares at Mar. 31, 2021 | 1,088.8 | ||||||||||
Beginning balance, Value at Dec. 31, 2020 | 2,941.5 | 5,276.5 | (50.7) | (2,284.3) | |||||||
Beginning balance, Shares at Dec. 31, 2020 | 1,081.6 | ||||||||||
Net income (loss) | (36.9) | ||||||||||
Other comprehensive income (loss) | (24.7) | (24.7) | |||||||||
Ending balance, Value at Sep. 30, 2021 | 3,007 | 5,418.8 | (75.4) | (2,336.4) | |||||||
Ending balance, Shares at Sep. 30, 2021 | 1,100.2 | ||||||||||
Beginning balance, Value at Mar. 31, 2021 | 2,942.4 | 5,324.2 | (66.3) | (2,315.5) | |||||||
Beginning balance, Shares at Mar. 31, 2021 | 1,088.8 | ||||||||||
Exercise of stock options and ESPP | 0.2 | 0.2 | |||||||||
Exercise of stock options and ESPP, Shares | 0.1 | ||||||||||
Vesting of RSUs, net of tax withholdings | (4) | (4) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 3.1 | ||||||||||
Stock-based compensation expense | 43.2 | 43.2 | |||||||||
Retirements of treasury stock | 4 | (4) | |||||||||
Net income (loss) | 27.8 | 27.8 | |||||||||
Other comprehensive income (loss) | 11 | 11 | |||||||||
Ending balance, Value at Jun. 30, 2021 | 3,020.6 | 5,367.6 | (55.3) | (2,291.7) | |||||||
Ending balance, Shares at Jun. 30, 2021 | 1,092 | ||||||||||
Exercise of stock options and ESPP | 4.4 | 4.4 | |||||||||
Exercise of stock options and ESPP, Shares | 0.6 | ||||||||||
Vesting of RSUs, net of tax withholdings | $ (3) | $ (3) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 7.6 | ||||||||||
Acquisition-related stock option issuance | 2.2 | 2.2 | |||||||||
Stock-based compensation expense | 44.6 | 44.6 | |||||||||
Retirements of treasury stock | $ 3 | (3) | |||||||||
Net income (loss) | (41.7) | (41.7) | |||||||||
Other comprehensive income (loss) | (20.1) | (20.1) | |||||||||
Ending balance, Value at Sep. 30, 2021 | $ 3,007 | $ 5,418.8 | $ (75.4) | $ (2,336.4) | |||||||
Ending balance, Shares at Sep. 30, 2021 | 1,100.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (36.9) | $ (376.4) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 170.7 | 87.1 |
Stock-based compensation expense | 125 | 84.9 |
(Gain) loss from derivatives, sale of investments and other assets and foreign currency, net | (4.9) | 2.5 |
(Accretion) amortization on marketable debt securities, net | (2.2) | |
Noncash lease expense | 12.9 | 11.8 |
Noncash interest expense | 40.2 | 18.8 |
Change in deferred income taxes and other | (43) | (11.1) |
Impairment related to real estate assets | 66.8 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 24.3 | (28.5) |
Prepaid expenses and other assets | (21.9) | 6.5 |
Accounts payable | (7.4) | (4.7) |
Deferred revenue | (4.2) | 210.2 |
Income tax payable | 25.1 | 19.3 |
Operating lease and other liabilities | (250.8) | 205.1 |
Net cash provided by (used in) operating activities | 95.9 | 223.3 |
Cash flows from investing activities: | ||
Purchases of investments | (612.7) | (560) |
Maturities of investments | 568.8 | 1,024.6 |
Sales of investments | 549.9 | |
Acquisition of property and equipment | (6.8) | (16.1) |
Business combinations, net of cash acquired and restricted cash held in escrow | (222.2) | (791.1) |
Release of restricted cash escrow from business combinations | (30) | |
Asset acquisitions of intangible assets | (4.3) | |
Other investing activities, net | (5.9) | (1.4) |
Net cash provided by (used in) investing activities | (283.1) | 175.9 |
Cash flows from financing activities: | ||
Debt issuance costs paid | (1.2) | |
Taxes paid related to net share settlement of stockholders' equity awards | (15.2) | (42.9) |
Proceeds from issuance of common stock | 15.1 | 16.1 |
Acquisition-related contingent consideration payments | (56.1) | (63.6) |
Net cash provided by (used in) financing activities | (57.4) | (90.4) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7.4) | 11.4 |
Net change in cash, cash equivalents and restricted cash | (252) | 320.2 |
Cash, cash equivalents and restricted cash, beginning of period | 1,500.4 | 453.3 |
Cash, cash equivalents and restricted cash, end of period | 1,248.4 | 773.5 |
Noncash investing activities: | ||
Acquisition-related deferred purchase consideration | 2.3 | 23.8 |
Acquisition-related stock option issuance | $ 2.2 | |
Acquisition-related common stock issuance | $ 1,137.7 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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), social networking platforms (such as Facebook and Snapchat), Personal Computers (PCs), consoles (such as Nintendo’s Switch) and other platforms. We also operate a mobile programmatic advertising and monetization platform. 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 prepared and 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, 2020. Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of September 30, 2021, the interim consolidated statements of operations, statements of comprehensive income (loss) and statements of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, statements of cash flows for the nine months ended September 30, 2021 and 2020 and the notes to the interim consolidated financial statements are unaudited. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three and nine months ended September 30, 2021 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 measuring 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 and as necessary, estimates of fair value to measure impairment losses. Actual results could differ materially from those estimates. Recent Accounting Pronouncements Issued But Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” its consolidated financial statements , but does anticipate a material adjustment to the carrying amount of the liability and equity components of our convertible senior notes upon adoption and the Company will adopt on January 1, 2022 . In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Online game: Mobile $ 552.8 $ 418.0 $ 1,659.1 $ 1,117.0 Other (1) 18.3 18.0 56.0 51.6 Online game total $ 571.1 $ 436.0 $ 1,715.1 $ 1,168.6 Advertising and other: Mobile $ 132.3 $ 66.1 $ 385.9 $ 186.8 Other (1) 1.3 1.2 4.0 3.4 Advertising and other total $ 133.6 $ 67.3 $ 389.9 $ 190.2 Total revenue $ 704.7 $ 503.3 $ 2,105.0 $ 1,358.8 (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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 425.1 $ 311.9 $ 1,273.4 $ 831.4 All other countries (1) 279.6 191.4 831.6 527.4 Total revenue $ 704.7 $ 503.3 $ 2,105.0 $ 1,358.8 (1) No foreign country exceeded 10% of our total revenue for any periods presented. The estimated weighted average playing period of payers was ten and nine months for the three months ended September 30, 2021 and 2020, respectively. The estimated weighted average playing period of payers was ten months for the nine months ended September 30, 2021 and 2020. 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 is 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 and nine months ended September 30, 2021, we recognized $96.4 million and $726.7 million, respectively, of revenue that was included in the current deferred revenue balance on December 31, 2020. The decrease in accounts receivable, net during the nine months ended September 30, 2021 was primarily driven by cash collections of current period and previously due amounts exceeding sales on account during the period, partially offset by the contribution from Chartboost, which was acquired in August 2021. The decrease in deferred revenue during the nine months ended September 30, 2021 was primarily driven by revenue recognized from the satisfaction of our performance obligations exceeding the sale of virtual items during the period. Unsatisfied Performance Obligations Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments [Abstract] | |
Financial Instruments | 3. Financial Instruments 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 September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 195.4 $ — $ — $ 195.4 Foreign certificates of deposit and time deposits 9.8 — — 9.8 Total $ 205.2 $ — $ — $ 205.2 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 152.7 $ 0.1 $ — $ 152.8 Foreign certificates of deposit and time deposits 6.5 — — 6.5 Total $ 159.2 $ 0.1 $ — $ 159.3 Long-term debt securities: Corporate debt securities $ 2.0 $ — $ — $ 2.0 Total $ 2.0 $ — $ — $ 2.0 Equity Securities We recognized a gain of $0.1 million and $0.3 million during the three and nine months ended September 30, 2021, respectively, as a component of other income (expense), net in our consolidated statement of operations associated with our mutual fund equity investments. We recognized a gain of $0.3 million and a loss of $0.4 million during the three and nine months ended September 30, 2020, respectively, as a component of other income (expense), net in our consolidated statement of operations associated with our mutual fund equity investments. Derivative Financial Instruments Beginning in July 2021, the Company entered into derivative instruments to manage certain of our foreign exchange risks. We use foreign currency contracts to reduce the risk that our cash flows, earnings and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. The Company records all derivatives net, as either other current assets or liabilities, at fair value. Designated Hedging Derivatives - Net I nvestment Hedge Certain foreign currency forward contracts are designated as net investment hedges to hedge foreign currency risks related to the Company’s investment in certain foreign subsidiaries. Changes in the fair value of the net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in Other Comprehensive Income (Loss) ("OCI") with the foreign currency translation adjustment and the excluded components (e.g. forward points) from the assessment of hedge effectiveness are recognized in other income (expense) on a straight-line basis over the life of the hedge. Non-designated Hedging Derivatives - Other Derivatives Other derivatives not designated as hedging instruments consist of foreign currency forward contracts that are used to offset foreign currency risks associated with the remeasurement of certain intercompany loans. Gains and losses on these contracts are recognized in other income (expense), net in our consolidated statement of operations. The following table summarizes the notional amounts of our outstanding derivative instruments (in millions): September 30, 2021 Designated Hedging Derivatives: Foreign exchange contracts Net investment hedge $ 202.5 Non-Designated Hedging Derivatives: Foreign exchange contracts $ 243.7 The following table shows the gains and losses on designated hedging derivatives recognized in OCI (in millions): Gains (Losses) Recognized in OCI Three and Nine Months Ended September 30, 2021 Net Investment Hedging Derivatives: Foreign exchange contracts Amount included in the assessment of effectiveness $ 2.8 The following table shows the effect of derivative instruments recorded in other income (expense), net in our consolidated statements of operations (in millions): Gains (Losses) Recognized in Other Income (Expense) Three and Nine Months Ended September 30, 2021 Net Investment Hedging Derivatives: Foreign exchange contracts Amount excluded from the assessment of effectiveness $ 0.3 Non-Designated Hedging Derivatives: Foreign exchange contracts $ (4.2 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The composition of our financial assets and liabilities among the three levels of the fair value hierarchy are as follows (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 384.2 $ — $ — $ 384.2 Foreign certificates of deposit and time deposits — 189.4 — 189.4 Short-term investments: Corporate debt securities — 195.4 — 195.4 Foreign certificates of deposit and time deposits — 9.8 — 9.8 Mutual funds — 47.4 — 47.4 Derivative assets: Designated hedging derivatives - foreign exchange contracts — 2.8 — 2.8 Non-designated hedging derivatives - foreign exchange contracts — 0.3 — 0.3 Total financial assets $ 384.2 $ 445.1 $ — $ 829.3 Liabilities: Contingent consideration $ — $ — $ 213.9 $ 213.9 Total financial liabilities $ — $ — $ 213.9 $ 213.9 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 611.1 $ — $ — $ 611.1 Corporate debt securities — 313.0 — 313.0 Foreign certificates of deposit and time deposits — 85.6 — 85.6 Short-term investments: Corporate debt securities — 152.8 — 152.8 Foreign certificates of deposit and time deposits — 6.5 — 6.5 Mutual funds — 49.1 — 49.1 Long-term investments: Corporate debt securities — 2.0 — 2.0 Total financial assets $ 611.1 $ 609.0 $ — $ 1,220.1 Liabilities: Contingent consideration $ — $ — $ 463.1 $ 463.1 Total financial liabilities $ — $ — $ 463.1 $ 463.1 The following table presents the activity for the nine months ended September 30, 2021 related to our Level 3 liabilities (in millions): Level 3 Liabilities: Contingent Consideration Balance as of December 31, 2020 $ 463.1 Additions — Fair value adjustments 50.0 Payments (239.6 ) Rollic contingency resolution (59.6 ) Balance as of September 30, 2021 $ 213.9 In July 2021, the Company settled the final contingent consideration obligation for $75.0 million related to its acquisition of Gram Games in the second quarter of 2018. For the three and nine months ended September 30, 2021, we recognized $0.1 million and $0.9 million of expense, respectively, within research and development expenses in our consolidated statement of operations related to the Gram Games contingent consideration. As of September 30, 2021, our contingent consideration obligations relate to the additional consideration payable in connection with our acquisitions of Small Giant in the first quarter of 2019 and Rollic in the fourth quarter of 2020. Under the original terms of the Small Giant acquisition, contingent consideration may be payable based on the achievement of certain future profitability metrics during each annual period following the acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. Under the original terms of the Rollic acquisition, contingent consideration may be payable based on the achievement of certain future bookings and profitability metrics 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 these acquisitions, we estimated the acquisition date fair value of the contingent consideration obligations using a Monte Carlo simulation. The significant unobservable inputs used in estimating these acquisition date fair value measurements were each entity’s projected performance, a risk-adjusted discount rate and performance volatility similar to industry peers. With respect to the remaining Rollic contingent consideration obligation, the Company executed an amendment to the Share Purchase Agreement with the former owners of Rollic in the second quarter of 2021 to accelerate the Company’s acquisition of the remaining 20% ownership in Rollic and to set the total contingent consideration payment at $60.0 million (the “Rollic Amendment”). In July 2021, the Company acquired the remaining 20% ownership and paid $20.0 million, with the remaining $40.0 million to be paid in first quarter of 2022. At the date of the Rollic Amendment, the Company measured the remaining final obligation by calculating the present value of the final payments using a discount rate of 1.3%, commensurate with the remaining term. The Company accretes the obligation up to its final amount using the effective interest method. The estimated value of the Rollic contingent consideration obligation decreased from $53.8 million as of December 31, 2020 to $39.8 million as of September 30, 2021. For the three and nine months ended September 30, 2021, we recognized $0.1 million and $6.0 million of expense, respectively, within research and development expenses in our consolidated statement of operations related to the Rollic contingent consideration. With the respect to the remaining Small Giant contingent consideration obligation, we estimate the fair value at each subsequent reporting period using a Monte Carlo simulation. The table below outlines the significant unobservable inputs used in estimating the fair value of the last remaining Small Giant contingent consideration liability as of September 30, 2021: Unobservable Inputs Annual bookings growth (decline) rate (7.7%) Bookings volatility 30.0% Asset volatility 40.0% Net cash flow margin 53.7% Discount rate 9.5% Changes in the projected performance of the acquired businesses could result in a higher or lower contingent consideration obligation in the future. In April 2021, the Company executed an amendment to the Share Purchase Agreement with the former owners of Small Giant to exclude the direct profitability (which includes marketing expenses) of Puzzle Combat The estimated fair value of the Small Giant contingent consideration obligation decreased from $409.3 million as of December 31, 2020 to $213.9 million as of September 30, 2021. The decrease was driven by a $239.6 million payment in the first quarter of 2021 to the former owners of Small Giant for its performance during the second contingent consideration period, partially offset by the increased probability of achievement and stronger than expected performance during the remaining performance period. For the three and nine months ended September 30, 2021, we recognized $21.3 million and $44.2 million of expense, respectively, within research and development expenses in our consolidated statements of operations. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net During the third quarter of 2021, the Company recognized an impairment loss related to its leasehold improvements, computer equipment and furniture and fixtures in the amounts of $7.5 million, $0.7 million and $0.7 million, respectively. Following the impairment, the adjusted carrying amount of the impacted assets represent their new cost basis. Refer to Note 6 – “Leases” for further background on the impairment loss. Property and equipment, net consist of the following (in millions): September 30, December 31, 2021 2020 Computer equipment $ 32.5 $ 30.4 Software 35.5 35.1 Furniture and fixtures 7.6 10.6 Leasehold improvements 20.9 30.8 Total property and equipment, gross $ 96.5 $ 106.9 Less: Accumulated depreciation (70.2 ) (67.6 ) Total property and equipment, net $ 26.3 $ 39.3 The following represents our property and equipment, net by location (in millions): September 30, December 31, 2021 2020 United States $ 10.6 $ 23.4 Turkey 8.0 7.7 India 3.6 4.3 United Kingdom 2.9 3.0 All other countries (1) 1.2 0.9 Total property and equipment, net $ 26.3 $ 39.3 (1) |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 6. Leases In August 2021, in consideration of the changing nature of the Company’s need for office space for its workforce, the Company’s Board of Directors approved a plan to sublease the Company’s current 185,000 square foot San Francisco, California office space (the “San Francisco Office Building”), as the Company transitions to a hybrid in-office and remote employee work model. As a result of the Board of Director’s decision and the accumulation of other factors, the Company recognized a $66.8 million impairment loss during the third quarter of 2021. The impairment loss recorded included $57.9 million related to the San Francisco Office Building right-of-use lease asset and $8.9 million related to property and equipment, net associated with the San Francisco Office Building (collectively, the “San Francisco Office Asset Group”). The fair value of the San Francisco Office Asset Group was estimated using a risk-adjusted, discounted cash flow model with Level 3 inputs. The significant assumptions used in estimating the fair value include the projected sublease income over the remaining lease term, expected downtime prior to the commencement of future subleases, expected rent concessions offered to future tenants and discount rates that reflected the level of risk associated with these future cash flows. In the second quarter of 2021, the Company executed a lease for office space of approximately 62,000 square feet in San Mateo, California (the “San Mateo Office Building”) over an approximate 11-year lease term (the “Office Lease Agreement”), with annual lease expense of approximately $3.0 million beginning in June 2021. The Office Lease Agreement provides the Company two separate options to extend the lease for five years each (for a total of an additional 10 years). At lease inception, the Company determined it was not reasonably certain to exercise any of the options to extend. As of September 30, 2021, future lease payments related to our operating leases were as follows (in millions): Year ending December 31: Operating Leases Remaining 2021 $ 6.0 2022 14.3 2023 23.4 2024 21.4 2025 17.5 2026 17.6 Thereafter 89.7 Total lease payments 189.9 Less: Imputed interest (34.9 ) Total lease liability balance $ 155.0 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions Acquisition of Chartboost, Inc. (“Chartboost”) On August 4, 2021, we acquired 100% of all issued and outstanding share capital of Chartboost, to acquire Chartboost’s mobile programmatic advertising and monetization platform and enhance Zynga’s advertising capabilities, for total consideration of $232.7 million. The total purchase consideration included $204.7 million in cash, $25.0 million of cash that was deposited into an escrow account for a period of 15 months as security for certain indemnification obligations of the former Chartboost securityholders (the “Escrow Consideration”) and Zynga’s replacement of unvested Chartboost stock options (the “Zynga Replacement Stock Options”). The Zynga Replacement Stock Options allow the option holders to purchase up to 1,012,388 shares of Zynga’s Class A common stock, of which $2.2 million of the total acquisition date fair value was allocated to the purchase consideration. Additionally, the total purchase consideration includes $0.8 million of deferred cash consideration (the “Deferred Cash Consideration”). In connection with the transaction, the Chartboost employees were paid cash bonuses totaling $19.3 million, inclusive of payroll-related taxes. These employee bonuses were determined to primarily benefit the combined Zynga and Chartboost entity and were recognized by the Company separate from the business combination. One of the Chartboost employee bonuses included a two-year two-year The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Chartboost (in millions): Estimated Purchase Price Allocation Cash $ 12.2 Restricted cash 0.4 Accounts receivable 19.4 Prepaid expenses 0.6 Other current assets 2.6 Intangible assets, net: Developed technology, useful life of 5 years 99.8 Trade names, useful life of 8 years 12.8 Customer relationships, useful life of 4 years 2.7 Goodwill 129.3 Property and equipment 0.2 Right-of-use assets 0.5 Other non-current assets 0.1 Total assets acquired 280.6 Accounts payable $ (1.4 ) Income taxes payable (0.1 ) Operating lease liabilities (0.4 ) Other current liabilities (31.0 ) Deferred tax liabilities, net (14.4 ) Non-current operating lease liabilities (0.1 ) Other non-current liabilities (0.5 ) Total liabilities (47.9 ) Total purchase price consideration $ 232.7 Fair value of Zynga Replacement Stock Options allocated to purchase consideration (1) (2.2 ) Total cash consideration (2) $ 230.5 (1) The fair value of the Zynga Replacement Stock Options allocated to purchase consideration was determined by calculating the acquisition-date fair value of the replaced unvested Chartboost stock options, multiplied by the ratio of the pre-combination service period to the total service period for the Zynga Replacement Stock Option. The fair value of the unvested Chartboost stock options was estimated using the Black-Scholes option-pricing model. The fair value of the Zynga Replacement Stock Options, less the value allocated to the purchase consideration, represents post-combination stock-based compensation expense. Refer to Note 12 – “Stockholders’ Equity” for further discussion. (2) The amount shown represents the cash paid at closing (which includes the Escrow Consideration), as well the Deferred Cash Consideration. Certain amounts noted above are preliminary and subject to change during the respective measurement period (up to one year from the acquisition date) as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities assumed, identifiable intangible assets, income and non-income based taxes and residual goodwill. The fair value of our intangible assets, net was determined using a risk-adjusted, discounted cash flow model. The weighted-average amortization period of the acquired intangible assets was 5.3 years at acquisition. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The results of operations from Chartboost have been included in our consolidated statement of operations since the date of acquisition. Transaction costs incurred by the Company in connection with the Chartboost acquisition include professional fees and Chartboost employee bonuses. Transaction costs incurred during the three months ended September 30, 2021, were $13.0 million, of which $4.1 million, $2.8 million and $6.1 million were recorded within research and development, sales and marketing and general and administrative expenses, respectively, in our consolidated statements of operations. Transaction costs incurred during the nine months ended September 30, 2021 were $14.3 million, of which $4.1 million, $2.8 million and $7.4 million recorded within research and development, sales and marketing and general and administrative expenses, respectively, in our consolidated statements of operations . Acquisition of Uncosoft Yazılım Anonim Şirketi (“Uncosoft”) On April 21, 2021, the Company’s subsidiary, Rollic, acquired 100% of all issued and outstanding share capital of Uncosoft, a Turkey joint stock company, in order to optimize its published game cost structure, for total purchase consideration of $10.5 million. On the acquisition date, Rollic paid a total of $12.5 million to the former owners of Uncosoft, of which $2.0 million settled a pre-acquisition contractual obligation for amounts owed to Uncosoft under Rollic and Uncosoft’s pre-existing profit sharing arrangement. The following table summarizes the acquisition date fair value of the assets, including intangible assets, and related goodwill acquired from Uncosoft (in millions): Estimated Purchase Price Allocation Cash $ 0.1 Intangible assets, net: Developed technology, useful life of 1 year 1.8 Goodwill 9.0 Total assets acquired 10.9 Deferred tax liabilities (0.4 ) Total liabilities (0.4 ) Total cash consideration $ 10.5 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. Acquisition of Echtra Games, Inc. On March 2, 2021, the Company acquired 100% of all issued and outstanding share capital of Echtra Games, Inc. (“Echtra”), to expand our cross-platform game development tools, technologies and experience, for total purchase consideration of $21.1 million. The total purchase consideration included $19.6 million in cash and $1.5 million of unrestricted cash that was retained for a period of 12 months as security for general representations and warranties (the “Holdback Consideration”). The following table summarizes the acquisition date fair value of the assets, including intangible assets, and related goodwill acquired from Echtra (in millions): Estimated Purchase Price Allocation Prepaid expenses $ 0.1 Intangible assets, net: Developed technology, useful life of 10 years 10.7 Goodwill 10.3 Total assets acquired 21.1 Total cash consideration, including Holdback Consideration $ 21.1 The fair value of the developed technology intangible asset was determined using a cost to recreate approach. Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 8. Goodwill and Intangible Assets, Net The following table presents the changes to goodwill for the nine months ended September 30, 2021 (in millions): Goodwill Balance as of December 31, 2020 (1) $ 3,160.8 Additions 148.6 Foreign currency translation adjustments (2) (12.8 ) Balance as of September 30, 2021 (1) $ 3,296.6 (3) There are no accumulated impairment losses at the beginning or end of the period (4) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of Small Giant and NaturalMotion, which have functional currencies denominated in the Euro and British Pound, respectively. The details of our acquisition-related intangible assets as of September 30, 2021 and December 31, 2020 are as follows (in millions): September 30, 2021 Gross Value Accumulated Amortization Net Book Developed technology $ 1,082.9 $ (475.0 ) $ 607.9 Trademarks, branding and domain names 219.8 (55.5 ) 164.3 Developer and customer relationships 44.7 (10.6 ) 34.1 Total $ 1,347.4 $ (541.1 ) $ 806.3 December 31, 2020 Gross Value Accumulated Amortization Net Book Developed technology $ 972.2 $ (346.5 ) $ 625.7 Trademarks, branding and domain names 208.5 (35.5 ) 173.0 Developer and customer relationships 42.0 (2.6 ) 39.4 Total $ 1,222.7 $ (384.6 ) $ 838.1 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of September 30, 2021 and December 31, 2020. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to intangible assets was $54.6 million and $159.5 million for the three and nine months ended September 30, 2021, respectively. Comparatively, amortization expense related to intangible assets was $46.0 million and $78.7 million for the three and nine months ended September 30, 2020 respectively. As of September 30, 2021, the weighted-average remaining useful lives of our acquired intangible assets were 3.8 years for developed technology, 5.8 years for trademarks, branding and domain names, 3.1 years for developer and customer relationships and 4.2 years in total, for all acquired intangible assets. As of September 30, 2021, future amortization expense related to our intangible assets is expected to be recognized as follows (in millions): Year ending December 31: Remaining 2021 $ 56.1 2022 214.9 2023 199.9 2024 162.0 2025 102.9 2026 39.1 Thereafter 25.3 Total $ 800.2 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The provision for (benefit from) income increased $24.4 million during the three months ended September 30, 2021 compared to the three months ended September 30, 2020. The increase was primarily driven by current period statutory income of our Peak subsidiary compared to a statutory loss in the prior period, further supplemented by an increase in expense related to the Base Erosion and Anti-Abuse Tax (“BEAT”). The overall increase was partially offset by the partial valuation allowance release from acquired Chartboost deferred tax liabilities. The provision for (benefit from) income taxes increased $36.0 million in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. Altera Corp v. Commissioner |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Convertible Senior Notes On December 17, 2020, we issued $874.5 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (the “2026 Notes”) including the initial purchasers’ full exercise of their option to purchase an additional $112.5 million principal amount of the 2026 Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933. The net proceeds from the issuance of the 2026 Notes was $856.8 million after deducting transaction costs. On June 14, 2019, we issued $690.0 million aggregate principal amount of 0.25% Convertible Senior Notes due 2024 (the “2024 Notes”), including the initial purchasers’ full exercise of their option to purchase an additional $90.0 million principal amount of the 2024 Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933. The net proceeds from the issuance of the 2024 Notes was $672.2 million after deducting transaction costs. The 2026 Notes and 2024 Notes are each governed by an indenture between us, as the issuer, and Wells Fargo Bank, National Association, as trustee. The 2026 Notes and 2024 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 such 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 indentures governing the 2026 Notes and 2024 Notes, as applicable, do not contain any financial covenants. The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. The 2026 Notes have an initial conversion rate of 76.5404 shares of our Class A common stock per $1,000 principal amount of 2026 Notes, which is equal to an initial conversion price of approximately $13.07 per share of our Class A common stock, subject to adjustment if certain events occur. The 2024 Notes have an initial conversion rate of 120.3695 shares of our Class A common stock per $1,000 principal amount of 2024 Notes, which is equal to an initial conversion price of approximately $8.31 per share of our Class A common stock, subject to adjustment if certain events occur. 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 2026 Notes or 2024 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 indentures, holders of the 2026 Notes and 2024 Notes may require us to repurchase for cash all or a portion of their respective 2026 Notes or 2024 Notes at a purchase price equal to 100% of the principal amount of the 2026 Notes and 2024 Notes plus accrued and unpaid interest. Prior to the close of business on the business day immediately preceding September 15, 2026 with respect to the 2026 Notes and March 1, 2024 with respect to the 2024 Notes, the 2026 Notes and 2024 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 of the applicable series of the 2026 Notes or 2024 Notes 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 each applicable series of the 2026 Notes or 2024 Notes for such trading day was less than 98% • if we call the 2026 Notes or 2024 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 respective indentures. On or after the dates specified above, holders of the 2026 Notes and 2024 Notes may convert all or any portion of their 2026 Notes and 2024 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 2026 Notes or 2024 Notes prior to December 20, 2023 and June 5, 2022, respectively. On or after those respective dates, the Company may redeem for cash all or any portion of the applicable series of the 2026 Notes or 2024 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 of the applicable series of the 2026 Notes or 2024 Notes for at least 20 trading days during any 30 consecutive trading-day period ending on and including the trading day immediately preceding the date when the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the applicable series of the 2026 Notes or 2024 Notes to be redeemed, plus any accrued and unpaid interest or special interest, as applicable. As of September 30, 2021, the conditions allowing holders of the 2026 Notes or 2024 Notes to convert their respective series of the 2026 Notes and 2024 Notes have not been met and therefore both the 2026 Notes and 2024 Notes are not yet convertible. We separately accounted for the liability and equity components of the 2026 Notes and 2024 Notes. We determined the initial carrying amount of the $707.4 million liability component of the 2026 Notes by calculating the present value of the cash flows using an effective interest rate of 3.5%. We determined the initial carrying amount of the $572.0 million liability component of the 2024 Notes by calculating the present value of the cash flows using an effective interest rate of 4.1%. The effective interest rates were determined based on non-convertible debt offerings, of similar sizes and terms, by companies with similar credit ratings and other observable market data (Level 2 inputs). The amount of the equity component, representing the conversion option, was $167.1 million for the 2026 Notes and $118.0 million for the 2024 Notes and was calculated by deducting the initial carrying value of the liability component from the principal amount of the 2026 Notes and 2024 Notes, respectively. This difference represents a debt discount that is amortized to interest expense over the 6-year and 5-year contractual periods of the 2026 Notes and 2024 Notes, respectively, using the effective interest rate method. The equity components are not subsequently remeasured as long as they continue to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the respective series of the 2026 Notes and 2024 Notes to the liability and equity components using the same proportions as the initial carrying value of the respective series of the 2026 Notes and 2024 Notes. The respective transaction costs are then amortized to interest expense using the effective interest method over the terms of the respective series of 2026 Notes and 2024 Notes. Transaction costs initially attributable to the liability component of the 2026 Notes and 2024 Notes were $14.3 million and $14.8 million, respectively, while transaction costs attributable to the equity component of the 2026 Notes and 2024 Notes were $3.4 million and $3.1 million, respectively. The transaction costs attributable to the equity component are accounted for consistently with the equity component of the 2026 Notes and 2024 Notes. The net carrying amount of the liability and equity components of the 2026 Notes and 2024 Notes as of September 30, 2021 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (66.4 ) (147.0 ) (213.4 ) Unamortized transaction costs (8.3 ) (12.6 ) (20.9 ) Net carrying amount $ 615.3 $ 714.9 $ 1,330.2 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.6 The net carrying amount of the liability and equity components of the 2026 Notes and 2024 Notes as of December 31, 2020 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (83.8 ) (166.1 ) (249.9 ) Unamortized transaction costs (10.5 ) (14.2 ) (24.7 ) Net carrying amount $ 595.7 $ 694.2 $ 1,289.9 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.6 Interest expense recognized related to the Notes was as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Contractual interest expense $ 0.4 $ 0.4 $ 1.3 $ 1.3 Amortization of debt discount 12.3 5.6 36.4 16.7 Amortization of transaction costs 1.2 0.7 3.8 2.1 Total $ 13.9 $ 6.7 $ 41.5 $ 20.1 As of September 30, 2021, the estimated fair value of the 2026 Notes and 2024 Notes was $849.1 million and $788.0 million, respectively. 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 2026 Notes and 2024 Notes, the Company entered into privately negotiated capped call options with certain counterparties (the “2026 Capped Calls” and “2024 Capped Calls”, respectively). The 2026 Capped Calls have an initial strike price of approximately $13.07 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes and an initial cap price of $17.42 per share, subject to certain adjustments. The 2026 Capped Calls are intended to reduce the potential economic dilution of approximately 66.9 million shares to our Class A common stock upon any conversion of the 2026 Notes and/or offset any cash payments we make in excess of the principal amount of converted notes with such reduction and/or offset, as the case may be, subject to a maximum based on the cap price. The cost of $63.0 million incurred in connection with the 2026 Capped Calls was recorded as a reduction to additional paid-in capital. The 2024 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 2024 Notes and an initial cap price of $12.54 per share, subject to certain adjustments. The 2024 Capped Calls are intended to reduce the potential economic dilution of approximately 83.1 million shares to our Class A common stock upon any conversion of the 2024 Notes and/or offset any cash payments we make in excess of the principal amount of converted notes with such reduction and/or offset, as the case may be, subject to a maximum based on the cap price. The cost of $73.8 million incurred in connection with the 2024 Capped Calls was recorded as a reduction to additional paid-in capital. As both the 2026 Capped Calls and 2024 Capped Calls are considered indexed to our own stock and are equity classified, therefore they are recorded in stockholders’ equity and are not accounted for as derivatives. Convertible Senior Notes and Capped Call Transactions – Impact on Earnings per Share The Company computes the potentially dilutive impact of the shares of Class A common stock related to the 2026 Notes and 2024 Notes using the treasury stock method, as we intend and have the ability to settle the principal amount of the 2026 Notes and 2024 Notes in cash upon conversion. However, the 66.9 million shares initially underlying the conversion option of the 2026 Notes and the 83.1 million shares initially underlying the conversion option of the 2024 Notes do not have an impact on our diluted earnings per share unless the average market price of our Class A common stock exceeds the respective conversion price of the 2026 Notes and 2024 Notes during a period of net income. The 2026 Capped Calls and 2024 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 2020, the Company entered into a credit agreement (the “2020 Credit Agreement”) with certain financial institutions that provides for a three-year Under the 2020 Credit Agreement, 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. 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 September 30, 2021, we had no amounts outstanding under the 2020 Credit Agreement. |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 11. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in millions): September 30, December 31, 2021 2020 Contingent consideration payable $ 253.7 $ 323.6 Accrued payables from acquisitions 137.5 — Accrued accounts payable 64.2 58.1 Accrued compensation liability 48.8 61.7 Value-added taxes payable 6.8 6.4 Other current liabilities 41.2 12.6 Total other current liabilities $ 552.2 $ 462.4 Our accrued compensation liability represents employee bonus and other payroll withholding expenses, while other current liabilities include various expenses that we accrue for sales and other taxes, customer deposits, accrued vendor expenses and deferred consideration payable from acquisitions. Other non-current liabilities consist of the following (in millions): September 30, December 31, 2021 2020 Deferred consideration payable from acquisitions $ 25.3 $ 24.4 Uncertain tax positions, including interest and penalties 25.0 24.8 Contingent consideration obligation — 213.6 Accrued payables from acquisitions 25.0 136.0 Other non-current liabilities 3.0 2.3 Total other non-current liabilities $ 78.3 $ 401.1 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 12. 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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 0.8 $ 0.6 $ 2.0 $ 1.5 Research and development 29.9 25.4 83.0 48.6 Sales and marketing 4.4 4.0 13.0 11.0 General and administrative 9.5 8.8 27.0 23.8 Total stock-based compensation expense $ 44.6 $ 38.8 $ 125.0 $ 84.9 Stock Option Activity The following table shows stock option activity for the nine months ended September 30, 2021 (in millions, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Aggregate Weighted- Weighted-Average Intrinsic Value of Average Exercise Price Stock Options Contractual Term Stock Options (per option) Outstanding (in years) Balance as of December 31, 2020 30.1 $ 3.46 $ 193.1 6.43 Granted 1.0 2.93 Forfeited, expired and cancelled — — Exercised (2.0 ) 2.96 Balance as of September 30, 2021 29.1 $ 3.47 $ 118.4 5.83 The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of the Zynga Replacement Stock Options: Three and Nine Months Ended September 30, 2021 Expected term, in years 5.6 Risk-free interest rates 0.7 % Expected volatility 34.2 % Dividend yield — Weighted-average estimated fair value of options granted (1) $ 7.21 (1) Of the total the weighted-average estimated fair value of the Zynga Replacement Stock options, $5.10 was allocated to the post-combination value. RSU Activity The following table shows a summary of RSU activity for the nine months ended September 30, 2021, which includes performance and market-based awards (in millions, except weighted-average grant date fair value): Outstanding RSUs Weighted-Average Aggregate Grant Date Fair Value Intrinsic Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2020 64.5 $ 7.43 $ 636.0 Granted 21.8 10.12 Vested (16.8 ) 6.36 Forfeited (3.1 ) 6.92 Unvested as of September 30, 2021 66.4 $ 8.61 $ 500.0 Performance-Based RSUs On March 15, 2021, the Company granted performance-based awards to certain executives (the “2021 Performance RSUs”). The number of shares earned will range from 0% to 150% of the target number of shares granted, depending on an adjusted operating cash flow metric for the year ended December 31, 2021 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 employees. The target number of shares granted totaled 1.2 million. The Company recognizes stock-based compensation expense for the 2021 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. 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 and nine months ended September 30, 2021, no share repurchases were made under the 2018 Share Repurchase Program. As of September 30, 2021, we had $173.8 million remaining under the 2018 Share Repurchase Program. All of our previous stock repurchases were made through open market purchases under Rule 10b5-1 plans and subsequently retired. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2021 (in millions): Foreign Currency Translation Unrealized Gains (Losses) on Available-For- Sale Marketable Debt Securities Total Balance as of December 31, 2020 $ (50.8 ) $ 0.1 $ (50.7 ) Other comprehensive income (loss) before reclassifications (24.6 ) (0.1 ) (24.7 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (24.6 ) (0.1 ) (24.7 ) Balance as of September 30, 2021 $ (75.4 ) $ — $ (75.4 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 14. 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, ESPP withholdings and convertible debt instruments. 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 millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 BASIC AND DILUTED: Net income (loss) attributable to common stockholders $ (41.7 ) $ (122.2 ) $ (36.9 ) $ (376.4 ) Weighted-average common shares outstanding 1,097.1 1,076.7 1,090.4 995.6 Net income (loss) per share attributable to common stockholders $ (0.04 ) $ (0.11 ) $ (0.03 ) $ (0.38 ) The following weighted-average employee equity awards and convertible debt instruments 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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options and employee stock purchase plan 29.1 30.9 28.9 30.9 RSUs (including performance and market- based awards) 67.3 69.8 68.0 53.0 Convertible senior notes 7.1 8.9 14.2 — Total 103.5 109.6 111.1 83.9 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies The amounts represented in the tables below reflect our minimum cash obligations for the respective calendar years based on contractual terms, but not necessarily the periods in which these costs will be expensed in the Company’s consolidated statement of operations. Licensor and Marketing Commitments We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of September 30, 2021, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in millions): Year ending December 31: Remaining 2021 $ 10.3 2022 8.3 2023 10.4 2024 — 2025 10.0 Thereafter — Total $ 39.0 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of September 30, 2021, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in millions): Year ending December 31: Remaining 2021 $ 12.5 2022 42.9 2023 33.6 2024 16.5 Thereafter — Total $ 105.5 Excluded from tables above is our uncertain income tax position liability of $25.0 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. Legal expenses are recognized as incurred. On September 12, 2019, the Company 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. The investigation revealed 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. The Company has provided notifications to players, investors, regulators and other third parties, where we believe notice was required or appropriate. The Company has exchanged correspondence with certain regulators as a result of the incident. The Company has also received and has responded to data subject access requests from certain European Union players of Zynga’s games. Since March 3, 2020, five consumer class action complaints have been filed in connection with the Data Incident in federal court. 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, email addresses, and passwords (among other items); failed to provide them with timely notification of the breach; and made misleading representations concerning the safety and security of plaintiffs’ personal information. Plaintiffs allege claims against Zynga under several state law theories, including negligence, intrusion upon seclusion, failure to comply with data breach notification statutes, and unjust enrichment, and they seek injunctive relief and damages. Zynga filed a motion to compel arbitration and arbitration-related discovery on May 8, 2020. On March 23, 2020, plaintiffs Carol Johnson and Lisa Thomas filed a second class action complaint in the Northern District of California federal court (the “ Johnson complaint”). Similar to the Chaudhri complaint, the Johnson plaintiffs – residents of Missouri and Wisconsin – assert Zynga failed to adequately protect certain player information, including names, email addresses, and passwords (among other items). Plaintiffs contend that, despite Zynga’s representations in its privacy policy that sensitive player information would be adequately protected, plaintiffs’ passwords were stored using inadequate hashing methods or in plain text. Plaintiffs allege that the lack of adequate security measures caused them harm as a result of the Data Incident, and they assert numerous various claims against Zynga, including claims for negligence, negligence per se, unjust enrichment, declaratory relief, breach of confidence, breach of contract and implied contract, violations of California’s Unfair Competition Law (“UCL”, CGL 17200, et seq.), and state-specific violations of Missouri’s Merchandising Practices Act and Wisconsin’s Deceptive Trade Practices Act. Plaintiffs seek damages, as well as declaratory and injunctive relief. On May 26, 2020, Zynga filed a motion to compel arbitration and arbitration-related discovery. 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 On June 9, 2020 plaintiffs James Oeste and Marissa Oeste, both residents of Maryland, filed a fourth class action complaint in the Northern District of Maryland (the “ Oeste Incident. Similar to all the foregoing plaintiffs, the Oeste plaintiffs seek to represent a nationwide class and generally allege that Zynga failed to adequately or reasonably protect certain player information, including names, email addresses, and passwords (among other items); that Zynga used outdated or improper password hashing methods; that Zynga failed to adequately provide notice of the Data Incident; and that they have been harmed as a result of the Data Incident. The Oeste plaintiffs assert claims for contractual breach, negligence, negligence per se, invasion of privacy, and claims for relief under California consumer protection and unfair competition statutes. Zynga responded to the complaint on August 31, 2020, with a motion to transfer the action to the Northern District of California. On May 5, 2021, the court granted Zynga’s motion to transfer, and the case was transferred to the No rthern District of California. T he California district court has consolidated Oeste proceedings in connection with the other already pending cases before the court. On August 13, 2020, plaintiff Christopher Rosiak filed a fifth class action in the Northern District of California (the “ Rosiak Martinez On January 6, 2021, the Northern California district court issued an order in three of the above actions— Chaudhri Johnson Martinez Chaudhri, Johnson, Martinez Rosiak In response to the amended and consolidated complaint, on April 21, 2021, the Company filed renewed motions to compel arbitration in connection with the claims alleged by three of the individual named plaintiffs in the Chaudhri Johnson Martinez Rosiak On February 26, 2021, a class action lawsuit was filed in the United States District Court for the Northern District of California by named plaintiff Michael Owens (the “ Owens Hit It Rich! Slots, Black Diamond Casino, Wizard of Oz Slots, Willy Wonka Slots, Game of Thrones™ Slots Casino, Spin it Rich!, Princess Bride Slots Riches of Olympus et seq. On March 2, 2021, a class-action lawsuit (the “ Bourgeois CSR Racing 2 Empires & Puzzles Farmville: Country Escape Dawn of Titans On April 12, 2021, IGT and IGT Canada Solutions ULC (“IGT”) served Zynga with a lawsuit in the Western District of Texas federal court (the “IGT complaint”), accusing the Company of infringing United States Patent Nos. 8,708,791; 9,159,189; 7,168,089; 7,303,473; 8,795,064; and 8,266,212. The complaint alleges that the following games and certain features contained within them infringe on the IGT patents: Zynga Poker Words With Friends Farmville Hit It Rich! Slots The Company intends to defend itself vigorously against all claims asserted. At this time, the Company is 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, claims and/or regulatory inquiries 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Acquisition of Beijing StarLark Technology Co., Ltd. (“StarLark”) and Lvy Technology Limited (“Lvy”) On August 3, 2021, the Company executed a Master Business Transfer Agreement among Beijing Fotoable Technology Limited, Funjoy Technology Limited, Lvy, StarLark and certain other parties (the “StarkLark Agreement”). On October 5, 2021 (the “StarLark Closing Date”), Zynga acquired Lvy, StarLark, the Golf Rival Pursuant to the StarLark Agreement, on the StarLark Closing Date, the Company acquired Lvy and StarLark, with StarLark becoming a direct, wholly-owned subsidiary of Lvy and Lvy becoming a direct, wholly-owned subsidiary of Zynga. |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying interim consolidated financial statements are prepared and 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, 2020. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim consolidated balance sheet as of September 30, 2021, the interim consolidated statements of operations, statements of comprehensive income (loss) and statements of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, statements of cash flows for the nine months ended September 30, 2021 and 2020 and the notes to the interim consolidated financial statements are unaudited. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three and nine months ended September 30, 2021 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 measuring 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 and as necessary, estimates of fair value to measure impairment losses. Actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” its consolidated financial statements , but does anticipate a material adjustment to the carrying amount of the liability and equity components of our convertible senior notes upon adoption and the Company will adopt on January 1, 2022 . In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” |
Debt | We separately accounted for the liability and equity components of the 2026 Notes and 2024 Notes. We determined the initial carrying amount of the $707.4 million liability component of the 2026 Notes by calculating the present value of the cash flows using an effective interest rate of 3.5%. We determined the initial carrying amount of the $572.0 million liability component of the 2024 Notes by calculating the present value of the cash flows using an effective interest rate of 4.1%. The effective interest rates were determined based on non-convertible debt offerings, of similar sizes and terms, by companies with similar credit ratings and other observable market data (Level 2 inputs). The amount of the equity component, representing the conversion option, was $167.1 million for the 2026 Notes and $118.0 million for the 2024 Notes and was calculated by deducting the initial carrying value of the liability component from the principal amount of the 2026 Notes and 2024 Notes, respectively. This difference represents a debt discount that is amortized to interest expense over the 6-year and 5-year contractual periods of the 2026 Notes and 2024 Notes, respectively, using the effective interest rate method. The equity components are not subsequently remeasured as long as they continue to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the respective series of the 2026 Notes and 2024 Notes to the liability and equity components using the same proportions as the initial carrying value of the respective series of the 2026 Notes and 2024 Notes. The respective transaction costs are then amortized to interest expense using the effective interest method over the terms of the respective series of 2026 Notes and 2024 Notes. Transaction costs initially attributable to the liability component of the 2026 Notes and 2024 Notes were $14.3 million and $14.8 million, respectively, while transaction costs attributable to the equity component of the 2026 Notes and 2024 Notes were $3.4 million and $3.1 million, respectively. The transaction costs attributable to the equity component are accounted for consistently with the equity component of the 2026 Notes and 2024 Notes. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Online game: Mobile $ 552.8 $ 418.0 $ 1,659.1 $ 1,117.0 Other (1) 18.3 18.0 56.0 51.6 Online game total $ 571.1 $ 436.0 $ 1,715.1 $ 1,168.6 Advertising and other: Mobile $ 132.3 $ 66.1 $ 385.9 $ 186.8 Other (1) 1.3 1.2 4.0 3.4 Advertising and other total $ 133.6 $ 67.3 $ 389.9 $ 190.2 Total revenue $ 704.7 $ 503.3 $ 2,105.0 $ 1,358.8 (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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 425.1 $ 311.9 $ 1,273.4 $ 831.4 All other countries (1) 279.6 191.4 831.6 527.4 Total revenue $ 704.7 $ 503.3 $ 2,105.0 $ 1,358.8 (1) No foreign country exceeded 10% of our total revenue for any periods presented. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financial Instruments [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 September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 195.4 $ — $ — $ 195.4 Foreign certificates of deposit and time deposits 9.8 — — 9.8 Total $ 205.2 $ — $ — $ 205.2 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 152.7 $ 0.1 $ — $ 152.8 Foreign certificates of deposit and time deposits 6.5 — — 6.5 Total $ 159.2 $ 0.1 $ — $ 159.3 Long-term debt securities: Corporate debt securities $ 2.0 $ — $ — $ 2.0 Total $ 2.0 $ — $ — $ 2.0 |
Summary of Notional Amounts of Outstanding Derivative Instruments | The following table summarizes the notional amounts of our outstanding derivative instruments (in millions): September 30, 2021 Designated Hedging Derivatives: Foreign exchange contracts Net investment hedge $ 202.5 Non-Designated Hedging Derivatives: Foreign exchange contracts $ 243.7 |
Summary of Gains and Losses on Designated Hedging Derivatives Recognized in OCI | The following table shows the gains and losses on designated hedging derivatives recognized in OCI (in millions): Gains (Losses) Recognized in OCI Three and Nine Months Ended September 30, 2021 Net Investment Hedging Derivatives: Foreign exchange contracts Amount included in the assessment of effectiveness $ 2.8 |
Summary of Effect of Derivative Instruments Recorded in Other Income (Expense), Net in Consolidate Statements of Operations | The following table shows the effect of derivative instruments recorded in other income (expense), net in our consolidated statements of operations (in millions): Gains (Losses) Recognized in Other Income (Expense) Three and Nine Months Ended September 30, 2021 Net Investment Hedging Derivatives: Foreign exchange contracts Amount excluded from the assessment of effectiveness $ 0.3 Non-Designated Hedging Derivatives: Foreign exchange contracts $ (4.2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities among the three levels of the fair value hierarchy are as follows (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 384.2 $ — $ — $ 384.2 Foreign certificates of deposit and time deposits — 189.4 — 189.4 Short-term investments: Corporate debt securities — 195.4 — 195.4 Foreign certificates of deposit and time deposits — 9.8 — 9.8 Mutual funds — 47.4 — 47.4 Derivative assets: Designated hedging derivatives - foreign exchange contracts — 2.8 — 2.8 Non-designated hedging derivatives - foreign exchange contracts — 0.3 — 0.3 Total financial assets $ 384.2 $ 445.1 $ — $ 829.3 Liabilities: Contingent consideration $ — $ — $ 213.9 $ 213.9 Total financial liabilities $ — $ — $ 213.9 $ 213.9 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 611.1 $ — $ — $ 611.1 Corporate debt securities — 313.0 — 313.0 Foreign certificates of deposit and time deposits — 85.6 — 85.6 Short-term investments: Corporate debt securities — 152.8 — 152.8 Foreign certificates of deposit and time deposits — 6.5 — 6.5 Mutual funds — 49.1 — 49.1 Long-term investments: Corporate debt securities — 2.0 — 2.0 Total financial assets $ 611.1 $ 609.0 $ — $ 1,220.1 Liabilities: Contingent consideration $ — $ — $ 463.1 $ 463.1 Total financial liabilities $ — $ — $ 463.1 $ 463.1 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the nine months ended September 30, 2021 related to our Level 3 liabilities (in millions): Level 3 Liabilities: Contingent Consideration Balance as of December 31, 2020 $ 463.1 Additions — Fair value adjustments 50.0 Payments (239.6 ) Rollic contingency resolution (59.6 ) Balance as of September 30, 2021 $ 213.9 |
Significant Unobservable Inputs Used in Measuring the Fair Value | The table below outlines the significant unobservable inputs used in estimating the fair value of the last remaining Small Giant contingent consideration liability as of September 30, 2021: Unobservable Inputs Annual bookings growth (decline) rate (7.7%) Bookings volatility 30.0% Asset volatility 40.0% Net cash flow margin 53.7% Discount rate 9.5% |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consist of the following (in millions): September 30, December 31, 2021 2020 Computer equipment $ 32.5 $ 30.4 Software 35.5 35.1 Furniture and fixtures 7.6 10.6 Leasehold improvements 20.9 30.8 Total property and equipment, gross $ 96.5 $ 106.9 Less: Accumulated depreciation (70.2 ) (67.6 ) Total property and equipment, net $ 26.3 $ 39.3 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in millions): September 30, December 31, 2021 2020 United States $ 10.6 $ 23.4 Turkey 8.0 7.7 India 3.6 4.3 United Kingdom 2.9 3.0 All other countries (1) 1.2 0.9 Total property and equipment, net $ 26.3 $ 39.3 (1) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Lease Payments Related to Our Operating Leases | As of September 30, 2021, future lease payments related to our operating leases were as follows (in millions): Year ending December 31: Operating Leases Remaining 2021 $ 6.0 2022 14.3 2023 23.4 2024 21.4 2025 17.5 2026 17.6 Thereafter 89.7 Total lease payments 189.9 Less: Imputed interest (34.9 ) Total lease liability balance $ 155.0 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Chartboost [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Chartboost (in millions): Estimated Purchase Price Allocation Cash $ 12.2 Restricted cash 0.4 Accounts receivable 19.4 Prepaid expenses 0.6 Other current assets 2.6 Intangible assets, net: Developed technology, useful life of 5 years 99.8 Trade names, useful life of 8 years 12.8 Customer relationships, useful life of 4 years 2.7 Goodwill 129.3 Property and equipment 0.2 Right-of-use assets 0.5 Other non-current assets 0.1 Total assets acquired 280.6 Accounts payable $ (1.4 ) Income taxes payable (0.1 ) Operating lease liabilities (0.4 ) Other current liabilities (31.0 ) Deferred tax liabilities, net (14.4 ) Non-current operating lease liabilities (0.1 ) Other non-current liabilities (0.5 ) Total liabilities (47.9 ) Total purchase price consideration $ 232.7 Fair value of Zynga Replacement Stock Options allocated to purchase consideration (1) (2.2 ) Total cash consideration (2) $ 230.5 (1) The fair value of the Zynga Replacement Stock Options allocated to purchase consideration was determined by calculating the acquisition-date fair value of the replaced unvested Chartboost stock options, multiplied by the ratio of the pre-combination service period to the total service period for the Zynga Replacement Stock Option. The fair value of the unvested Chartboost stock options was estimated using the Black-Scholes option-pricing model. The fair value of the Zynga Replacement Stock Options, less the value allocated to the purchase consideration, represents post-combination stock-based compensation expense. Refer to Note 12 – “Stockholders’ Equity” for further discussion. (2) The amount shown represents the cash paid at closing (which includes the Escrow Consideration), as well the Deferred Cash Consideration. |
Uncosoft [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the assets, including intangible assets, and related goodwill acquired from Uncosoft (in millions): Estimated Purchase Price Allocation Cash $ 0.1 Intangible assets, net: Developed technology, useful life of 1 year 1.8 Goodwill 9.0 Total assets acquired 10.9 Deferred tax liabilities (0.4 ) Total liabilities (0.4 ) Total cash consideration $ 10.5 |
Echtra [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the assets, including intangible assets, and related goodwill acquired from Echtra (in millions): Estimated Purchase Price Allocation Prepaid expenses $ 0.1 Intangible assets, net: Developed technology, useful life of 10 years 10.7 Goodwill 10.3 Total assets acquired 21.1 Total cash consideration, including Holdback Consideration $ 21.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill for the nine months ended September 30, 2021 (in millions): Goodwill Balance as of December 31, 2020 (1) $ 3,160.8 Additions 148.6 Foreign currency translation adjustments (2) (12.8 ) Balance as of September 30, 2021 (1) $ 3,296.6 (3) There are no accumulated impairment losses at the beginning or end of the period (4) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of Small Giant and NaturalMotion, which have functional currencies denominated in the Euro and British Pound, respectively. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of September 30, 2021 and December 31, 2020 are as follows (in millions): September 30, 2021 Gross Value Accumulated Amortization Net Book Developed technology $ 1,082.9 $ (475.0 ) $ 607.9 Trademarks, branding and domain names 219.8 (55.5 ) 164.3 Developer and customer relationships 44.7 (10.6 ) 34.1 Total $ 1,347.4 $ (541.1 ) $ 806.3 December 31, 2020 Gross Value Accumulated Amortization Net Book Developed technology $ 972.2 $ (346.5 ) $ 625.7 Trademarks, branding and domain names 208.5 (35.5 ) 173.0 Developer and customer relationships 42.0 (2.6 ) 39.4 Total $ 1,222.7 $ (384.6 ) $ 838.1 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of September 30, 2021, future amortization expense related to our intangible assets is expected to be recognized as follows (in millions): Year ending December 31: Remaining 2021 $ 56.1 2022 214.9 2023 199.9 2024 162.0 2025 102.9 2026 39.1 Thereafter 25.3 Total $ 800.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 2026 Notes and 2024 Notes as of September 30, 2021 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (66.4 ) (147.0 ) (213.4 ) Unamortized transaction costs (8.3 ) (12.6 ) (20.9 ) Net carrying amount $ 615.3 $ 714.9 $ 1,330.2 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.6 The net carrying amount of the liability and equity components of the 2026 Notes and 2024 Notes as of December 31, 2020 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (83.8 ) (166.1 ) (249.9 ) Unamortized transaction costs (10.5 ) (14.2 ) (24.7 ) Net carrying amount $ 595.7 $ 694.2 $ 1,289.9 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.6 |
Schedule of Interest Expense Recognized Related to Notes | Interest expense recognized related to the Notes was as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Contractual interest expense $ 0.4 $ 0.4 $ 1.3 $ 1.3 Amortization of debt discount 12.3 5.6 36.4 16.7 Amortization of transaction costs 1.2 0.7 3.8 2.1 Total $ 13.9 $ 6.7 $ 41.5 $ 20.1 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in millions): September 30, December 31, 2021 2020 Contingent consideration payable $ 253.7 $ 323.6 Accrued payables from acquisitions 137.5 — Accrued accounts payable 64.2 58.1 Accrued compensation liability 48.8 61.7 Value-added taxes payable 6.8 6.4 Other current liabilities 41.2 12.6 Total other current liabilities $ 552.2 $ 462.4 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in millions): September 30, December 31, 2021 2020 Deferred consideration payable from acquisitions $ 25.3 $ 24.4 Uncertain tax positions, including interest and penalties 25.0 24.8 Contingent consideration obligation — 213.6 Accrued payables from acquisitions 25.0 136.0 Other non-current liabilities 3.0 2.3 Total other non-current liabilities $ 78.3 $ 401.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 0.8 $ 0.6 $ 2.0 $ 1.5 Research and development 29.9 25.4 83.0 48.6 Sales and marketing 4.4 4.0 13.0 11.0 General and administrative 9.5 8.8 27.0 23.8 Total stock-based compensation expense $ 44.6 $ 38.8 $ 125.0 $ 84.9 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the nine months ended September 30, 2021 (in millions, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Aggregate Weighted- Weighted-Average Intrinsic Value of Average Exercise Price Stock Options Contractual Term Stock Options (per option) Outstanding (in years) Balance as of December 31, 2020 30.1 $ 3.46 $ 193.1 6.43 Granted 1.0 2.93 Forfeited, expired and cancelled — — Exercised (2.0 ) 2.96 Balance as of September 30, 2021 29.1 $ 3.47 $ 118.4 5.83 |
Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions | The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of the Zynga Replacement Stock Options: Three and Nine Months Ended September 30, 2021 Expected term, in years 5.6 Risk-free interest rates 0.7 % Expected volatility 34.2 % Dividend yield — Weighted-average estimated fair value of options granted (1) $ 7.21 (1) Of the total the weighted-average estimated fair value of the Zynga Replacement Stock options, $5.10 was allocated to the post-combination value. |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of RSU activity for the nine months ended September 30, 2021, which includes performance and market-based awards (in millions, except weighted-average grant date fair value): Outstanding RSUs Weighted-Average Aggregate Grant Date Fair Value Intrinsic Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2020 64.5 $ 7.43 $ 636.0 Granted 21.8 10.12 Vested (16.8 ) 6.36 Forfeited (3.1 ) 6.92 Unvested as of September 30, 2021 66.4 $ 8.61 $ 500.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 (in millions): Foreign Currency Translation Unrealized Gains (Losses) on Available-For- Sale Marketable Debt Securities Total Balance as of December 31, 2020 $ (50.8 ) $ 0.1 $ (50.7 ) Other comprehensive income (loss) before reclassifications (24.6 ) (0.1 ) (24.7 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (24.6 ) (0.1 ) (24.7 ) Balance as of September 30, 2021 $ (75.4 ) $ — $ (75.4 ) |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 BASIC AND DILUTED: Net income (loss) attributable to common stockholders $ (41.7 ) $ (122.2 ) $ (36.9 ) $ (376.4 ) Weighted-average common shares outstanding 1,097.1 1,076.7 1,090.4 995.6 Net income (loss) per share attributable to common stockholders $ (0.04 ) $ (0.11 ) $ (0.03 ) $ (0.38 ) |
Shares Excluded from Calculation of Diluted Net Income (Loss) per Share | The following weighted-average employee equity awards and convertible debt instruments 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 millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options and employee stock purchase plan 29.1 30.9 28.9 30.9 RSUs (including performance and market- based awards) 67.3 69.8 68.0 53.0 Convertible senior notes 7.1 8.9 14.2 — Total 103.5 109.6 111.1 83.9 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in millions): Year ending December 31: Remaining 2021 $ 10.3 2022 8.3 2023 10.4 2024 — 2025 10.0 Thereafter — Total $ 39.0 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts primarily for hosting of data systems and other services. As of September 30, 2021, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in millions): Year ending December 31: Remaining 2021 $ 12.5 2022 42.9 2023 33.6 2024 16.5 Thereafter — Total $ 105.5 |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Initial offering period | December 2011 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 704.7 | $ 503.3 | $ 2,105 | $ 1,358.8 |
Mobile Online Game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 552.8 | 418 | 1,659.1 | 1,117 |
Other Online game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 18.3 | 18 | 56 | 51.6 |
Online Game [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 571.1 | 436 | 1,715.1 | 1,168.6 |
Mobile Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 132.3 | 66.1 | 385.9 | 186.8 |
Web Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1.3 | 1.2 | 4 | 3.4 |
Advertising and Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 133.6 | $ 67.3 | $ 389.9 | $ 190.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 704.7 | $ 503.3 | $ 2,105 | $ 1,358.8 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 425.1 | 311.9 | 1,273.4 | 831.4 |
All Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 279.6 | $ 191.4 | $ 831.6 | $ 527.4 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Current deferred revenue recognized | $ 96.4 | $ 726.7 | ||
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 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Estimated weighted average life of product | 10 months | 9 months | 10 months | 10 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Detail1) | Sep. 30, 2021 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Expected length of unsatisfaction of performance obligations | 1 year |
Financial Instruments - Summary
Financial Instruments - Summary of Available-for-Sale Short-Term and Long-Term Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 205.2 | $ 159.2 |
Gross Unrealized Gains | 0.1 | |
Aggregate Fair Value | 205.2 | 159.3 |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2 | |
Aggregate Fair Value | 2 | |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 195.4 | 152.7 |
Gross Unrealized Gains | 0.1 | |
Aggregate Fair Value | 195.4 | 152.8 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2 | |
Aggregate Fair Value | 2 | |
Foreign Certificates of Deposit and Time Deposits [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9.8 | 6.5 |
Aggregate Fair Value | $ 9.8 | $ 6.5 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Gain (Loss) [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gain (loss) recognized, mutual fund equity investment | $ 0.1 | $ 0.3 | $ 0.3 | $ (0.4) |
Financial Instruments - Summa_2
Financial Instruments - Summary of Notional Amounts of Outstanding Derivative Instruments (Detail) - Foreign Exchange Contracts [Member] $ in Millions | Sep. 30, 2021USD ($) |
Designated as Hedging Instruments [Member] | Net Investment Hedge [Member] | |
Derivative [Line Items] | |
Gross notional amounts of outstanding derivative instruments | $ 202.5 |
Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Gross notional amounts of outstanding derivative instruments | $ 243.7 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Gains and Losses on Designated Hedging Derivatives Recognized in OCI (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Other Comprehensive Income (Loss) | Derivatives in Net Investment Hedging Relationships [Member] | Foreign Exchange Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in OCI, Amount included in the assessment of effectiveness | $ 2.8 | $ 2.8 |
Financial Instruments - Summa_4
Financial Instruments - Summary of Effect of Derivative Instruments Recorded in Other Income (Expense), Net in Consolidate Statements of Operations (Detail) - Foreign Exchange Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Not Designated as Hedging Instruments [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Other Income (Expenses) | $ (4.2) | $ (4.2) |
Derivatives in Net Investment Hedging Relationships [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (Losses) Recognized in Other Income (Expenses) Amount excluded from the assessment of effectiveness | $ 0.3 | $ 0.3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 829.3 | $ 1,220.1 |
Liabilities Fair Value Disclosure Recurring | 213.9 | 463.1 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 213.9 | 463.1 |
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 | 384.2 | 611.1 |
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 | 195.4 | 152.8 |
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 | 2 | |
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 | 313 | |
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 | 9.8 | 6.5 |
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 | 189.4 | 85.6 |
Mutual Fund [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 47.4 | 49.1 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 2.8 | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 0.3 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 384.2 | 611.1 |
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 | 384.2 | 611.1 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 445.1 | 609 |
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 | 195.4 | 152.8 |
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 | 2 | |
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 | 313 | |
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 | 9.8 | 6.5 |
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 | 189.4 | 85.6 |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 47.4 | 49.1 |
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Contracts [Member] | Designated as Hedging Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 2.8 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 0.3 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 213.9 | 463.1 |
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 | $ 213.9 | $ 463.1 |
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 Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance as of December 31, 2020 | $ 463.1 |
Fair value adjustments | 50 |
Payments | (239.6) |
Rollic contingency resolution | (59.6) |
Balance as of September 30, 2021 | $ 213.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Mar. 31, 2022USD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Present value of contingent consideration obligation | $ 253.7 | $ 253.7 | $ 323.6 | ||||
Measurement Input, Discount Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation, measurement input | 0.095 | 0.095 | |||||
Gram Games [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation | $ 75 | ||||||
Contingent consideration payable, total years | 3 years | ||||||
Gram Games [Member] | Research and Development Expense [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation, expense recognized | $ 0.1 | $ 0.9 | |||||
Rollic | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation | $ 20 | $ 60 | 53.8 | ||||
Contingent consideration payable, total years | 3 years | ||||||
Percentage of potential consideration acquired | 20.00% | 20.00% | |||||
Present value of contingent consideration obligation | $ 39.8 | $ 39.8 | |||||
Rollic | Measurement Input, Discount Rate | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation, measurement input | 0.013 | 0.013 | |||||
Rollic | Forecast | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation | $ 40 | ||||||
Rollic | Research and Development Expense [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation, expense recognized | $ 0.1 | $ 6 | |||||
Small Giant [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Contingent consideration obligation | 213.9 | 213.9 | $ 409.3 | ||||
Business Combination, Contingent Consideration, Liability | $ 239.6 | ||||||
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 | $ 21.3 | $ 44.2 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Measuring the Fair Value (Detail) | Sep. 30, 2021 |
Annual Bookings Growth (Decline) Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | (0.077) |
Measurement Input Bookings Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 0.300 |
Measurement Input Asset Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 0.400 |
Measurement Input Net Cash Flows Margin | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 0.537 |
Measurement Input, Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 0.095 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Impairment loss | $ 7.5 |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Impairment loss | 0.7 |
Furniture and Fixtures [Member] | |
Property Plant And Equipment [Line Items] | |
Impairment loss | $ 0.7 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 96.5 | $ 106.9 |
Less: Accumulated depreciation | (70.2) | (67.6) |
Total property and equipment, net | 26.3 | 39.3 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 32.5 | 30.4 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 35.5 | 35.1 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 7.6 | 10.6 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 20.9 | $ 30.8 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 26.3 | $ 39.3 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 10.6 | 23.4 | |
Turkey [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 8 | 7.7 | |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 3.6 | 4.3 | |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 2.9 | 3 | |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | [1] | $ 1.2 | $ 0.9 |
[1] | No other foreign country exceeded 10% of our total property and equipment, net for any periods presented. |
Property and Equipment, Net -_2
Property and Equipment, Net - Property and Equipment, Net (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Maximum [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Maximum percentage limit for total property and equipment, net for foreign country | 10.00% |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2021USD ($)ft² | Sep. 30, 2021USD ($) | Jun. 30, 2021ft² | Sep. 30, 2021USD ($) | Aug. 31, 2021ft² | |
Lessee Lease Description [Line Items] | |||||
Impairment loss | $ 66.8 | $ 66.8 | |||
San Francisco Office Building [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Land subject to ground leases | ft² | 185,000 | ||||
Impairment loss | 66.8 | ||||
Right-of-use lease asset, impairment loss | 57.9 | ||||
Property and equipment, net, impairment loss | $ 8.9 | ||||
Office Lease Agreement [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Land subject to ground leases | ft² | 62,000 | 62,000 | |||
Lease term of contract | 11 years | 11 years | |||
Operating lease, existence of option to extend | true | ||||
Operating lease, renewal term | 10 years | 10 years | |||
Operating lease, expense | $ 3 | ||||
Office Lease Agreement [Member] | First Option To Extend Lease [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease, renewal term | 5 years | 5 years | |||
Office Lease Agreement [Member] | Second Option To Extend Lease [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease, renewal term | 5 years | 5 years |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments Related to Our Operating Leases (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remaining 2021 | $ 6 |
2022 | 14.3 |
2023 | 23.4 |
2024 | 21.4 |
2025 | 17.5 |
2026 | 17.6 |
Thereafter | 89.7 |
Total lease payments | 189.9 |
Less: Imputed interest | (34.9) |
Total lease liability balance | $ 155 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Aug. 04, 2021 | Apr. 21, 2021 | Mar. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||||
Intangible assets, weighted average useful life | 4 years 2 months 12 days | ||||
Chartboost [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition effective date of acquisition | Aug. 4, 2021 | ||||
Percentage of acquired equity interest | 100.00% | ||||
Business acquisition, cost of acquired entity | $ 232.7 | ||||
Business acquisition, cost of acquired entity upfront cash paid | 204.7 | ||||
Business acquisition, retained in escrow | $ 25 | ||||
Business acquisition, escrow period | 15 months | ||||
Purchase consideration | $ 2.2 | ||||
Deferred cash consideration | $ 0.8 | ||||
Intangible assets, weighted average useful life | 5 years 3 months 18 days | ||||
Transaction costs | $ 13 | $ 14.3 | |||
Chartboost [Member] | Research and Development Expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | 4.1 | 4.1 | |||
Chartboost [Member] | Sales and Marketing Expenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | 2.8 | 2.8 | |||
Chartboost [Member] | General and Administrative Expenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | $ 6.1 | $ 7.4 | |||
Chartboost [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Preliminary measurement period | 1 year | ||||
Chartboost [Member] | Employees [Member] | |||||
Business Acquisition [Line Items] | |||||
Payment of cash bonuses, inclusive of payroll-related taxes | $ 19.3 | ||||
Payment of cash bonuses, post-acquisition service period | 2 years | ||||
Payment of cash bonuses, period for recognize as expense on straight-line basis | 2 years | ||||
Chartboost [Member] | Class A Common stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition consideration by shares | 1,012,388 | ||||
Echtra [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of acquired equity interest | 100.00% | ||||
Business acquisition, cost of acquired entity | $ 21.1 | ||||
Business acquisition, cost of acquired entity upfront cash paid | $ 19.6 | ||||
Business acquisition effective date of acquisition | Mar. 2, 2021 | ||||
Business acquisition, retained in unrestricted cash | $ 1.5 | ||||
Business acquisition, unrestricted cash period | 12 months | ||||
Uncosoft [Member] | Rollic | |||||
Business Acquisition [Line Items] | |||||
Percentage of acquired equity interest | 100.00% | ||||
Business acquisition, cost of acquired entity | $ 10.5 | ||||
Business acquisition, cost of acquired entity upfront cash paid | $ 12.5 | ||||
Business acquisition effective date of acquisition | Apr. 21, 2021 | ||||
Time sharing transactions, deferred profit | $ 2 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Price Allocation (Detail) - USD ($) $ in Millions | Aug. 04, 2021 | Mar. 02, 2021 | Sep. 30, 2021 | Apr. 21, 2021 | Dec. 31, 2020 |
Intangible assets, net: | |||||
Goodwill | $ 3,296.6 | $ 3,160.8 | |||
Other current liabilities | $ (552.2) | $ (462.4) | |||
Chartboost [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 12.2 | ||||
Restricted cash | 0.4 | ||||
Accounts receivable | 19.4 | ||||
Prepaid expenses | 0.6 | ||||
Other current assets | 2.6 | ||||
Intangible assets, net: | |||||
Goodwill | 129.3 | ||||
Property and equipment | 0.2 | ||||
Right-of-use assets | 0.5 | ||||
Other non-current assets | 0.1 | ||||
Total assets acquired | 280.6 | ||||
Accounts payable | (1.4) | ||||
Income taxes payable | (0.1) | ||||
Operating lease liabilities | (0.4) | ||||
Other current liabilities | (31) | ||||
Deferred tax liabilities, net | (14.4) | ||||
Non-current operating lease liabilities | (0.1) | ||||
Other non-current liabilities | (0.5) | ||||
Total liabilities | (47.9) | ||||
Total purchase price consideration | 232.7 | ||||
Total purchase price consideration | 232.7 | ||||
Fair value of Zynga Replacement Stock Options allocated to purchase consideration | (2.2) | ||||
Total cash consideration, including escrow consideration and deferred cash consideration | 230.5 | ||||
Chartboost [Member] | Developed Technology, Useful Life of 5 years [Member] | |||||
Intangible assets, net: | |||||
Intangible assets, net | 99.8 | ||||
Chartboost [Member] | Trade Names, Useful Life of 8 Years [Member] | |||||
Intangible assets, net: | |||||
Intangible assets, net | 12.8 | ||||
Chartboost [Member] | Customer Relationships, Useful Life of 4 Years [Member] | |||||
Intangible assets, net: | |||||
Intangible assets, net | $ 2.7 | ||||
Uncosoft [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 0.1 | ||||
Intangible assets, net: | |||||
Goodwill | 9 | ||||
Deferred tax liabilities, net | (0.4) | ||||
Total liabilities | (0.4) | ||||
Total purchase price consideration | 10.5 | ||||
Total assets acquired | 10.9 | ||||
Uncosoft [Member] | Developed Technology, Useful Life of One Year [Member] | |||||
Intangible assets, net: | |||||
Intangible assets, net | $ 1.8 | ||||
Echtra [Member] | |||||
Business Acquisition [Line Items] | |||||
Prepaid expenses | $ 0.1 | ||||
Intangible assets, net: | |||||
Goodwill | 10.3 | ||||
Total purchase price consideration | 21.1 | ||||
Total purchase price consideration | 21.1 | ||||
Total assets acquired | 21.1 | ||||
Echtra [Member] | Developed Technology, Useful Life of 10 Years [Member] | |||||
Intangible assets, net: | |||||
Intangible assets, net | $ 10.7 |
Acquisitions - Schedule of Ac_2
Acquisitions - Schedule of Acquisition Price Allocation (Parenthetical) (Detail) | Aug. 04, 2021 | Apr. 21, 2021 | Mar. 02, 2021 |
Chartboost [Member] | Developed Technology, Useful Life of 5 years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 5 years | ||
Chartboost [Member] | Trade Names, Useful Life of 8 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 8 years | ||
Chartboost [Member] | Customer Relationships, Useful Life of 4 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 4 years | ||
Uncosoft [Member] | Developed Technology, Useful Life of One Year [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 1 year | ||
Echtra [Member] | Developed Technology, Useful Life of 10 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 10 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill Roll Forward | |
Goodwill, beginning balance | $ 3,160.8 |
Additions | 148.6 |
Foreign currency translation adjustments | (12.8) |
Goodwill, ending balance | $ 3,296.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
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 Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,347.4 | $ 1,222.7 |
Accumulated Amortization | (541.1) | (384.6) |
Net Book Value | 806.3 | 838.1 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,082.9 | 972.2 |
Accumulated Amortization | (475) | (346.5) |
Net Book Value | 607.9 | 625.7 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 219.8 | 208.5 |
Accumulated Amortization | (55.5) | (35.5) |
Net Book Value | 164.3 | 173 |
Developer and Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 44.7 | 42 |
Accumulated Amortization | (10.6) | (2.6) |
Net Book Value | $ 34.1 | $ 39.4 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 2 months 12 days | ||||
Trademarks, Branding and Domain Names [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets | $ 6.1 | $ 6.1 | $ 6.1 | ||
Weighted-average remaining useful lives of acquired intangible assets | 5 years 9 months 18 days | ||||
Other Intangible Assets | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization Expense | $ 54.6 | $ 46 | $ 159.5 | $ 78.7 | |
Developed Technology [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 9 months 18 days | ||||
Developer and Customer Relationships [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 1 month 6 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
Remaining 2021 | $ 56.1 |
2022 | 214.9 |
2023 | 199.9 |
2024 | 162 |
2025 | 102.9 |
2026 | 39.1 |
Thereafter | 25.3 |
Total | $ 800.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Increase in provision for (benefit from) income taxes | $ 24.4 | $ 36 | |
Additional current federal and state tax expense | $ 9.4 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | Dec. 17, 2020USD ($)d$ / shares | Jun. 14, 2019USD ($)d$ / shares | Sep. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021 | Dec. 31, 2020USD ($) | Sep. 30, 2020shares | Jun. 30, 2020 | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020shares |
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 1,564.5 | $ 1,564.5 | $ 1,564.5 | $ 1,564.5 | ||||||
Debt instrument carrying amount of equity component conversion option | $ 278.6 | $ 278.6 | $ 278.6 | $ 278.6 | ||||||
Anti-dilutive securities underlying conversion option | shares | 103.5 | 109.6 | 111.1 | 83.9 | ||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit facility expiration period | 3 years | |||||||||
Initial aggregate principal borrowing capacity amount | $ 425 | $ 425 | ||||||||
Debt instrument interest rate, description | Under the 2020 Credit Agreement, 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. 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 | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.25% | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Maximum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.35% | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% | 0.50% | ||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.50% | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 2.00% | |||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Federal Funds Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | |||||||||
Common Class A [Member] | Convertible Senior Notes And Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Anti-dilutive securities underlying conversion option | shares | 83.1 | |||||||||
Common Class A [Member] | Convertible Senior Notes Due 2026 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Anti-dilutive securities underlying conversion option | shares | 66.9 | |||||||||
Convertible Senior Notes Due 2026 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 874.5 | 874.5 | $ 874.5 | $ 874.5 | $ 874.5 | |||||
Debt instrument, interest rate | 0.00% | |||||||||
Additional aggregate principal amount | $ 112.5 | |||||||||
Proceeds from the issuance of notes | $ 856.8 | |||||||||
Debt instrument maturity date | Dec. 15, 2026 | |||||||||
Debt instrument payment terms | The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. | |||||||||
Debt repurchase price percentage | 100.00% | |||||||||
Debt instrument initial carrying amount | $ 707.4 | |||||||||
Interest rate used to calculate the present value of the cash flows | 3.50% | |||||||||
Debt instrument carrying amount of equity component conversion option | $ 167.1 | $ 163.7 | 163.7 | 163.7 | $ 163.7 | |||||
Contractual term | 6 years | |||||||||
Transaction costs attributable to the liability component | $ 14.3 | |||||||||
Transaction costs attributable to the equity component | $ 3.4 | |||||||||
Convertible Senior Notes Due 2026 [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 13.07 | 13.07 | ||||||||
Initial cap price | $ / shares | 17.42 | 17.42 | ||||||||
Cost incurred for Capped Calls | $ 63 | |||||||||
Convertible Senior Notes Due 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument estimated fair value | $ 849.1 | $ 849.1 | ||||||||
Convertible Senior Notes Due 2026 [Member] | Common Class A [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial conversion rate of common stock per $1,000 principal amount | 76.5404 | |||||||||
Initial conversion price per share of common stock | $ / shares | $ 13.07 | |||||||||
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 | Dec. 20, 2023 | |||||||||
Debt instrument redemption price percentage | 100.00% | |||||||||
Convertible Senior Notes Due 2026 [Member] | Common Class A [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Capped calls economic dilutive potential common stock shares | shares | 66.9 | |||||||||
Convertible Senior Notes Due 2024 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 690 | 690 | 690 | 690 | $ 690 | |||||
Debt instrument, interest rate | 0.25% | |||||||||
Additional aggregate principal amount | $ 90 | |||||||||
Proceeds from the issuance of notes | $ 672.2 | |||||||||
Debt instrument maturity date | Jun. 1, 2024 | |||||||||
Debt instrument payment terms | The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. | |||||||||
Debt repurchase price percentage | 100.00% | |||||||||
Debt instrument initial carrying amount | $ 572 | |||||||||
Interest rate used to calculate the present value of the cash flows | 4.10% | |||||||||
Debt instrument carrying amount of equity component conversion option | $ 118 | $ 114.9 | $ 114.9 | $ 114.9 | $ 114.9 | |||||
Contractual term | 5 years | |||||||||
Transaction costs attributable to the liability component | $ 14.8 | |||||||||
Transaction costs attributable to the equity component | $ 3.1 | |||||||||
Convertible Senior Notes Due 2024 [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 8.31 | 8.31 | ||||||||
Initial cap price | $ / shares | 12.54 | 12.54 | ||||||||
Cost incurred for Capped Calls | $ 73.8 | |||||||||
Convertible Senior Notes Due 2024 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument estimated fair value | $ 788 | $ 788 | ||||||||
Convertible Senior Notes Due 2024 [Member] | Common Class A [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% | |||||||||
Convertible Senior Notes Due 2024 [Member] | Common Class A [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Capped calls economic dilutive potential common stock shares | shares | 83.1 |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability and Equity Components of Notes (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 17, 2020 | Jun. 14, 2019 |
Liability component: | ||||
Principal | $ 1,564.5 | $ 1,564.5 | ||
Unamortized debt discount | (213.4) | (249.9) | ||
Unamortized transaction costs | (20.9) | (24.7) | ||
Net carrying amount | 1,330.2 | 1,289.9 | ||
Equity component, net of transaction costs | 278.6 | 278.6 | ||
Convertible Senior Notes Due 2024 [Member] | ||||
Liability component: | ||||
Principal | 690 | 690 | $ 690 | |
Unamortized debt discount | (66.4) | (83.8) | ||
Unamortized transaction costs | (8.3) | (10.5) | ||
Net carrying amount | 615.3 | 595.7 | ||
Equity component, net of transaction costs | 114.9 | 114.9 | $ 118 | |
Convertible Senior Notes Due 2026 [Member] | ||||
Liability component: | ||||
Principal | 874.5 | 874.5 | $ 874.5 | |
Unamortized debt discount | (147) | (166.1) | ||
Unamortized transaction costs | (12.6) | (14.2) | ||
Net carrying amount | 714.9 | 694.2 | ||
Equity component, net of transaction costs | $ 163.7 | $ 163.7 | $ 167.1 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Notes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 0.4 | $ 0.4 | $ 1.3 | $ 1.3 |
Amortization of debt discount | 12.3 | 5.6 | 36.4 | 16.7 |
Amortization of transaction costs | 1.2 | 0.7 | 3.8 | 2.1 |
Total | $ 13.9 | $ 6.7 | $ 41.5 | $ 20.1 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Current [Abstract] | ||
Contingent consideration payable | $ 253.7 | $ 323.6 |
Accrued payables from acquisitions | 137.5 | |
Accrued accounts payable | 64.2 | 58.1 |
Accrued compensation liability | 48.8 | 61.7 |
Value-added taxes payable | 6.8 | 6.4 |
Other current liabilities | 41.2 | 12.6 |
Total other current liabilities | $ 552.2 | $ 462.4 |
Other Current and Non-Current_4
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Noncurrent [Abstract] | ||
Deferred consideration payable from acquisitions | $ 25.3 | $ 24.4 |
Uncertain tax positions, including interest and penalties | 25 | 24.8 |
Contingent consideration obligation | 213.6 | |
Accrued payables from acquisitions | 25 | 136 |
Other non-current liabilities | 3 | 2.3 |
Total other non-current liabilities | $ 78.3 | $ 401.1 |
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 ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 44,600,000 | $ 38,800,000 | $ 125,000,000 | $ 84,900,000 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 800,000 | 600,000 | 2,000,000 | 1,500,000 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 29,900,000 | 25,400,000 | 83,000,000 | 48,600,000 |
Sales and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4,400,000 | 4,000,000 | 13,000,000 | 11,000,000 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 9,500,000 | $ 8,800,000 | $ 27,000,000 | $ 23,800,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | shares | 30.1 | |
Stock Options, Granted | shares | 1 | |
Stock Options, Exercised | shares | (2) | |
Stock Options Outstanding, Ending balance | shares | 29.1 | 30.1 |
Outstanding Options, Weighted Average Exercise Price (per option), Beginning Balance | $ / shares | $ 3.46 | |
Weighted Average Exercise Price (per option), Granted | $ / shares | 2.93 | |
Weighted Average Exercise Price (per option), Exercised | $ / shares | 2.96 | |
Outstanding Options, Weighted Average Exercise Price (per option), Ending Balance | $ / shares | $ 3.47 | $ 3.46 |
Aggregate Intrinsic Value of Stock Options Outstanding | $ | $ 118.4 | $ 193.1 |
Outstanding Options, Weighted Average Contractual Term (in years) | 5 years 9 months 29 days | 6 years 5 months 4 days |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term, in years | 5 years 7 months 6 days | 5 years 7 months 6 days | |
Risk-free interest rates | 0.70% | 0.70% | |
Expected volatility | 34.20% | 34.20% | |
Dividend yield | 0.00% | 0.00% | |
Weighted-average estimated fair value of options granted | [1] | $ 7.21 | $ 7.21 |
[1] | Of the total the weighted-average estimated fair value of the Zynga Replacement Stock options, $5.10 was allocated to the post-combination value. |
Stockholders' Equity - Weight_2
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Parenthetical) (Detail) - $ / shares | Aug. 04, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-average estimated fair value of stock options granted | [1] | $ 7.21 | $ 7.21 | |
Chartboost [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-average estimated fair value of stock options granted | $ 5.10 | |||
[1] | Of the total the weighted-average estimated fair value of the Zynga Replacement Stock options, $5.10 was allocated to the post-combination value. |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Outstanding Shares, Beginning balance | shares | 64.5 |
Unvested Shares, Granted | shares | 21.8 |
Unvested Shares, Vested | shares | (16.8) |
Unvested Shares, Forfeited | shares | (3.1) |
Unvested Outstanding Shares, Ending balance | shares | 66.4 |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 7.43 |
Unvested Weighted Average Grant Date Fair Value, Granted | $ / shares | 10.12 |
Unvested Weighted Average Grant Date Fair Value, Vested | $ / shares | 6.36 |
Unvested Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 6.92 |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 8.61 |
Unvested, Aggregate Intrinsic Value of Unvested RSU | $ | $ 636 |
Unvested, Aggregate Intrinsic Value of Unvested RSU | $ | $ 500 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 15, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Apr. 30, 2018 |
2018 Share Repurchase Program [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Repurchase of common stock | 0 | 0 | ||
Stock repurchase program, remaining amount | $ 173,800,000 | $ 173,800,000 | ||
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] | ||||
Conversion of stock description | The number of shares earned will range from 0% to 150% of the target number of shares granted, depending on an adjusted operating cash flow metric for the year ended December 31, 2021 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 employees. The target number of shares granted totaled 1.2 million. | |||
Share-based compensation awards vesting period | 4 years | |||
Number of shares across all executives totaled | $ 1,200,000 | |||
Performance Based RSUs [Member] | One Year Anniversary [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting rights, percentage | 25.00% | |||
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 | 150.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Beginning balance, Value | $ 3,020.6 | $ 2,942.4 | $ 2,941.5 | $ 1,736.2 | $ 1,855.6 | $ 1,975.4 | $ 2,941.5 | $ 1,975.4 |
Other comprehensive income (loss), net of tax | (20.1) | 11 | (15.6) | 31.3 | 17.7 | (30) | (24.7) | 19 |
Ending balance, Value | 3,007 | 3,020.6 | 2,942.4 | 2,813.4 | 1,736.2 | 1,855.6 | 3,007 | 2,813.4 |
Foreign Currency Translation [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Beginning balance, Value | (50.8) | (50.8) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (24.6) | |||||||
Other comprehensive income (loss), net of tax | (24.6) | |||||||
Ending balance, Value | (75.4) | (75.4) | ||||||
Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Beginning balance, Value | 0.1 | 0.1 | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (0.1) | |||||||
Other comprehensive income (loss), net of tax | (0.1) | |||||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
Beginning balance, Value | (55.3) | (66.3) | (50.7) | (138.2) | (155.9) | (125.9) | (50.7) | (125.9) |
Other comprehensive income (loss) before reclassifications, net of tax | (24.7) | |||||||
Other comprehensive income (loss), net of tax | (20.1) | 11 | (15.6) | 31.3 | 17.7 | (30) | (24.7) | |
Ending balance, Value | $ (75.4) | $ (55.3) | $ (66.3) | $ (106.9) | $ (138.2) | $ (155.9) | $ (75.4) | $ (106.9) |
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 Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
BASIC AND DILUTED: | ||||||||
Net income (loss) attributable to common stockholders | $ (41.7) | $ 27.8 | $ (23) | $ (122.2) | $ (150.3) | $ (103.9) | $ (36.9) | $ (376.4) |
Weighted-average common shares outstanding | 1,097.1 | 1,076.7 | 1,090.4 | 995.6 | ||||
Net income (loss) per share attributable to common stockholders | $ (0.04) | $ (0.11) | $ (0.03) | $ (0.38) |
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 Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 103.5 | 109.6 | 111.1 | 83.9 |
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 | 29.1 | 30.9 | 28.9 | 30.9 |
RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 67.3 | 69.8 | 68 | 53 |
Convertible Senior Notes [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 7.1 | 8.9 | 14.2 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2021 | $ 10.3 |
2022 | 8.3 |
2023 | 10.4 |
2024 | 0 |
2025 | 10 |
Thereafter | 0 |
Total | $ 39 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining 2021 | $ 12.5 |
2022 | 42.9 |
2023 | 33.6 |
2024 | 16.5 |
Thereafter | 0 |
Total | $ 105.5 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Uncertain tax positions liability, including interest and penalties | $ 25 | $ 24.8 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - StarLark and Lvy [Member] - USD ($) $ in Millions | Oct. 05, 2021 | Aug. 03, 2021 |
Subsequent Event [Line Items] | ||
Business acquisition effective date of acquisition | Aug. 3, 2021 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Business acquisition effective date of acquisition | Oct. 5, 2021 | |
Business acquisition, cost of acquired entity upfront cash paid | $ 276 | |
Business acquisition, retained in escrow | $ 40 | |
Business acquisition, escrow period | 15 months | |
Business combination payments description | the issuance of 20,009,528 shares of Class A common stock of Zynga, valued at $145.7 million on the StarLark Closing Date. | |
Class A Common stock [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Business acquisition consideration by shares | 20,009,528 | |
Business acquisition consideration by value | $ 145.7 |