Zynga 2013 Annual Report Download - page 8

Table of Contents
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 Asia and Europe. We were originally organized in April 2007 and 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.” As of
December 31, 2013, we had 2,034 full-time employees.
While 2013 was a challenging year for the Company, we believe we exit 2013 well-positioned to meet our near-term and long-term
objectives and execute on our corporate strategy. In 2014, we intend to continue to drive efficiencies to align our cost structure with our strategic
initiatives. In 2013, in addition to enhancing our executive management team, we reduced our capital expenditures by $90.2 million (excluding
the purchase of our headquarters building in 2012), reduced headcount by over 1,000 employees, and reduced total costs and expenses by $525.3
million.
Our Social Games
We design our social games to provide players with shared experiences that surprise and delight them. Our social games leverage the
global connectivity and distribution on Facebook and other Internet-based social networks, Zynga.com, and on mobile platforms including
Apple’s App Store for iOS devices and the Google Play App Store for Android devices. Our games are generally free to play, span a number of
categories and attract a community of players that is demographically and geographically diverse. We operate our games as live services and
update them with fresh content and new features to make them more social, enhance player engagement and improve monetization. We analyze
the data generated by our players’ game play and social interactions to guide the creation of new content and features. We use this ongoing
feedback loop to keep our games compelling and enhance the player experience.
We generate revenue from the following online services:
Virtual Goods and Paid Downloads
Our primary revenue source is the sale of virtual currency that players use to buy in-game virtual goods. Virtual currency can also be
earned for free through game play or by accepting promotional offers from our advertising partners. We also generate revenue when players
purchase mobile game downloads.
Advertising
Our advertising services offer creative ways for marketers and advertisers to reach and engage with our players. The goal of our
engagement-based advertising is to enhance the player experience while delivering real value to advertisers. Our advertising offerings include:
Our Strategy
Our mission is to connect the world through games. In pursuit of our mission, we encourage entrepreneurship and intelligent risk-taking to
produce great games and breakthrough innovations. Our goal from a content perspective is to create top hits that engage mainstream global
audiences.
4
•
Branded Virtual Goods and Sponsorships
that integrate advertising within game play;
•
Engagement Ads and Offers
in which players can answer certain questions, watch-to-earn engagements or sign up for third party
services to receive virtual currency;
•
Mobile Ads
through ad
-
supported free versions of our mobile games, such as
Words with Friends
;
•
Display Ads
in our online web games that include banner advertisements; and
•
Licensing
our brands.