Zynga 2012 Annual Report Download - page 50

We use bookings to evaluate the results of our operations, generate future operating plans and assess the
performance of our company. While we believe that this non-GAAP financial measure is useful in evaluating our
business, this information should be considered as supplemental in nature and is not meant as a substitute for
revenue recognized in accordance with U.S. GAAP. In addition, other companies, including companies in our
industry, may calculate bookings differently or not at all, which reduces its usefulness as a comparative measure.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income
(loss), adjusted for (provision for) / benefit from income taxes; other income (expense), net; interest income; gain
(loss) from legal settlements; depreciation and amortization; stock-based expense; impairment of intangible
assets; restructuring charges and change in deferred revenue. We believe that adjusted EBITDA provides useful
information to investors and others in understanding and evaluating our operating results in the same manner as
our management and board of directors. For a reconciliation of net income (loss) to adjusted EBITDA, see the
section titled “—Non-GAAP Financial Measures” Included in Item 6. Selected Consolidated Financial Data of
this Annual Report on Form 10-K.
Key Operating Metrics
We manage our business by tracking several operating metrics: “DAUs,” which measure daily active users
of our games, “MAUs,” which measure monthly active users of our games, “MUUs,” which measure monthly
unique users of our games, “MUPs,” which measure monthly unique payers in our games, and “ABPU,” which
measures our average daily bookings per average DAU, each of which is recorded by our internal analytics
systems.
DAUs. We define DAUs as the number of individuals who played one of our games during a particular day.
Under this metric, an individual who plays two different games on the same day is counted as two DAUs.
Similarly, an individual who plays the same game on two different platforms (e.g. web and mobile) or on two
different social networks on the same day would be counted as two DAUs. Average DAUs for a particular period
is the average of the DAUs for each day during that period. We use DAUs as a measure of audience engagement.
MAUs. We define MAUs as the number of individuals who played a particular game in the 30-day period
ending with the measurement date. Under this metric, an individual who plays two different games in the same
30-day period is counted as two MAUs. Similarly, an individual who plays the same game on two different
platforms (e.g., web and mobile) or on two different social networks in a 30-day period would be counted as two
MAUs. Average MAUs for a particular period is the average of the MAUs at each month-end during that period.
We use MAUs as a measure of total game audience size.
MUUs. We define MUUs as the number of unique individuals who played any of our games on a particular
platform in the 30-day period ending with the measurement date. An individual who plays more than one of our
games in a given 30-day period would be counted as a single MUU. However, because we cannot always
distinguish unique individuals playing across multiple platforms, an individual who plays any of our games on
two different platforms (e.g., web and mobile) in a given 30-day period may be counted as two MUUs in the
event that we do not have data that allows us to de-duplicate the player. Because many of our players play more
than one game in a given 30-day period, MUUs are always lower than MAUs in any given time period. Average
MUUs for a particular period is the average of the MUUs at each month-end during that period. We use MUUs
as a measure of total audience reach across our network of games.
MUPs. We define MUPs as the number of unique players who made a payment at least once during the
applicable month through a payment method for which we can quantify the number of unique payers, including
payers from certain of our mobile games. MUPs does not include payers who use certain payment methods for
which we cannot quantify the number of unique payers. If a player made a payment in our games on two separate
platforms (e.g., Facebook and Google+) in a period, the player would be counted as two unique payers in that
period. MUPs are presented as an average of the three months in the applicable quarter.
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