Zynga 2013 Annual Report Download - page 15

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Table of Contents
We webcast our earnings calls and certain events we participate in or host with members of the investment community on our investor
relations website. Additionally, we provide notifications of news or announcements regarding our financial performance, including SEC filings,
investor events, press and earnings releases as part of our investor relations website. Investors and others can receive notifications of new
information posted on our investor relations website in real time by signing up for email alerts and RSS feeds. Further corporate governance
information, including our certificate of incorporation, bylaws, governance guidelines, board committee charters, and code of conduct, is also
available on our investor relations website under the heading “Corporate Governance.” The contents of our websites are not incorporated by
reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites are
intended to be inactive textual references only.
ITEM 1A. RISK FACTORS
We have identified the following risks and uncertainties that may have a material adverse effect on our business, financial condition or
results of operations. The risks described below are not the only ones we face. Additional risks not presently known to us or that we currently
believe are not material may also significantly impair our business operations. Our business could be harmed by any of these risks. The trading
price of our Class A common stock could decline due to any of these risks, and you may lose all or part of your investment. In assessing these
risks, you should also refer to the other information contained in this Annual Report on Form 10-K, including our consolidated financial
statements and related notes.
Risks Related to Our Business and Industry
If our distribution channels or platform providers change their standard terms and conditions for developers in a way that is detrimental to
us, our business will suffer.
Facebook is currently the primary distribution, marketing, promotion and payment platform for our games. To date, we have derived a
significant portion of our bookings (69% in the twelve months ended December 31, 2013) and revenue (75% in the twelve months ended
December 31, 2013) and acquired a significant number of our players through Facebook. Except for certain limited addenda, we are subject to
Facebook’s standard terms and conditions for application developers, which govern the promotion, distribution between us and Facebook and
operation of games and other applications on the Facebook platform, and which are subject to change by Facebook at its sole discretion at any
time. If Facebook changes its standard terms and conditions in a way that is detrimental to us, our business would be harmed and our operating
results would be adversely affected.
Our business may be harmed if:
In addition, we have benefited from Facebook’s strong brand recognition and large user base. If Facebook loses its market position or
otherwise falls out of favor with Internet users or other factors cause its user base to stop growing or shrink, we would need to identify
alternative channels for marketing, promoting and distributing our games, which would consume substantial resources and may not be effective,
or available at all.
11
•
Facebook discontinues or limits access to its platform by us;
•
Facebook terminates or seeks to terminate our contractual relationship altogether;
•
Facebook prohibits us from offering our games on the Facebook platform because it determines that we are a competitor or for other
reasons;
•
Facebook modifies its terms of service or other policies, including fees charged to, or other restrictions on, us, other application
developers, or Facebook changes how the personal information of its users is made available to application developers on the
Facebook platform or shared by users;
•
Facebook establishes more favorable relationships with one or more of our competitors; or
•
Facebook develops its own competitive offerings.