Zynga 2014 Annual Report Download - page 52

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Table of Contents
Limitations of Bookings and Adjusted EBITDA
Some limitations of bookings and adjusted EBITDA are:
Because of these limitations, you should consider bookings and adjusted EBITDA along with other financial performance measures,
including revenue, net income (loss) and our other financial results presented in accordance with U.S. GAAP.
49
•
adjusted EBITDA does not include the impact of stock
-
based expense;
•
bookings and adjusted EBITDA do not reflect that we defer and recognize online game revenue and revenue from certain advertising
transactions over the estimated average life of virtual goods or as virtual goods are consumed;
•
adjusted EBITDA does not reflect income tax expense;
•
adjusted EBITDA does not include other income (expense) net, which includes foreign exchange gains and losses and interest
income;
•
adjusted EBITDA excludes depreciation and amortization and although these are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future;
•
adjusted EBITDA does not include the impairment of intangible assets previously acquired, contingent consideration fair value
adjustments, and does not include acquisition
-
related transaction expenses or restructuring expense;
•
adjusted EBITDA does not include gains and losses associated with significant legal settlements; and
•
other companies, including companies in our industry, may calculate bookings and adjusted EBITDA differently or not at all, which
reduces their usefulness as a comparative measure.