Zynga 2011 Annual Report Download - page 15

Table of Contents
If we fail to effectively manage our growth, our business and operating results could be harmed.
We continue to experience rapid growth in our headcount and operations, which will continue to place significant demands on our
management and our operational, financial and technological infrastructure. As of December 31, 2011, approximately 54% of our employees had
been with us for less than one year and approximately 84% for less than two years. As we continue to grow, we must expend significant
resources to identify, hire, integrate, develop and motivate a large number of qualified employees. If we fail to effectively manage our hiring
needs and successfully integrate our new hires, our ability to continue launching new games and enhance existing games could suffer.
To effectively manage the growth of our business and operations, we will need to continue spending significant resources to improve our
technology infrastructure, our operational, financial and management controls, and our reporting systems and procedures by, among other things:
These enhancements and improvements will require significant capital expenditures and allocation of valuable management and employee
resources. If we fail to implement these enhancements and improvements effectively, our ability to manage our expected growth and comply
with the rules and regulations that are applicable to public reporting companies will be impaired. In addition, if our operating costs are higher
than we expect or if we do not maintain adequate control of our costs and expenses, our operating results will suffer.
Our growth prospects will suffer if we are unable to continue to develop successful games for mobile platforms.
Developing games for mobile platforms is an important component of our strategy. We have devoted and we expect to continue to devote
substantial resources to the development of our mobile games, and we cannot guarantee that we will continue to develop such games that appeal
to players or advertisers. The uncertainties we face include:
These and other uncertainties make it difficult to know whether we will succeed in continuing to develop commercially viable games for
mobile. If we do not succeed in doing so, our growth prospects will suffer.
Our core values of focusing on our players first and acting for the long term may conflict with the short-term interests of our business.
One of our core values is to focus on surprising and delighting our players, which we believe is essential to our success and serves the best,
long-term interests of Zynga and our stakeholders. Therefore, we have made in the past and we may make in the future, significant investments
or changes in strategy that we think will benefit
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monitoring and updating our technology infrastructure to maintain high performance and minimize down time;
• enhancing information and communication systems to ensure that our employees and offices around the world are well-coordinated
and can effectively communicate with each other;
•
enhancing our internal controls to ensure timely and accurate reporting of all of our operations; and
•
appropriately documenting our information technology systems and our business processes.
• we have relatively limited experience working with wireless carriers, mobile platform providers and other partners whose
cooperation we may need in order to be successful;
• we may encounter difficulty in integrating features on games developed for mobile platforms that a sufficient number of players will
pay for; and
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we will need to move beyond payment methods provided by social networks and successfully allow for a variety of payment
methods and systems based on the mobile platform, geographies and other factors.