Zynga 2014 Annual Report Download - page 56

Table of Contents
ABPU. We define ABPU as our total bookings in a given period, divided by the number of days in that period, divided by, the average
DAUs during the period. We believe that ABPU provides useful information to investors and others in understanding and evaluating our results
in the same manner as our management and board of directors. We use ABPU as a measure of overall monetization across all of our players
through the sale of virtual goods and advertising.
Our business model for social games is designed so that, as there are more players that play our games, social interactions increase and the
more valuable the games and our business become. All engaged players of our games help drive our bookings and, consequently, both online
game revenue and advertising revenue. Virtual goods are purchased by players who are socializing with, competing against or collaborating with
other players, most of whom do not buy virtual goods. Accordingly, we primarily focus on bookings, DAUs, MAUs, MUUs, MUPs and ABPU,
which together we believe best reflect key audience metrics.
The table below shows average DAUs, MAUs, MUUs, MUPs and ABPU for the last eight quarters:
Average DAUs, MAUs and MUUs, grew during the first and second quarter of 2014 and declined in the third and fourth quarters of 2014
and when comparing the three months ended December 31, 2014 to December 31, 2013. Growth in average DAUs, MAUs and MUUs in the
first and second quarters of 2014 was due to increases in mobile users from FarmVille 2: Country Escape and Hit it Rich! Slots, both launched
on mobile platforms in the first half of 2014. Average DAUs and MAUs also increased due to the inclusion of NaturalMotion mobile users from
CSR Racing and Clumsy Ninja . Declines in average DAUs, MAUs and MUUs in the third and fourth quarter of 2014 were due to declines in
users for our existing games such as FarmVille 2 and Zynga Poker. In addition, MUPs declined in the three months ended December 31, 2014
compared to the three months ended December 31, 2013, as payers in FarmVille 2 and Zynga Poker contributed more MUPs in 2013 than in
2014. ABPU increased in each consecutive quarter in 2014 due to a faster decline in DAUs in those periods than the decline in bookings. Future
growth in audience and engagement will depend on our ability to retain current players, attract new players, launch new games and expand into
new market and distribution platforms.
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For the Three Months Ended
Dec 31,
2014
Sep 30,
2014
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Jun 30,
2013
Mar 31,
2013
(users and payers in millions)
Average DAUs
25
26
29
28
27
30
39
52
Average MAUs
108
112
130
123
112
133
187
253
Average MUUs
71
77
89
86
80
97
123
150
Average MUPs
1.1
1.3
1.7
1.4
1.3
1.6
1.9
2.5
ABPU
$
0.079
$
0.073
$
0.067
$
0.063
$
0.060
$
0.055
$
0.053
$
0.049
MUUs and MUPs exclude NaturalMotion as our systems are unable to distinguish whether a player of a NaturalMotion game is also a
player of a Zynga game so we exclude NaturalMotion payers to avoid potential double counting of MUUs and MUPs.
(1)
(1)
(1)