Zynga 2014 Annual Report Download - page 7

Table of Contents
PART I
ITEM 1. BUSINESS
Overview
Zynga Inc. (“Zynga” or “we” or “the Company”) is a leading provider of social game services. We develop, market and operate social
games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook. Generally, all of our
games are free to play, and we generate revenue through the in-game sale of virtual goods and advertising services.
We are a pioneer and innovator of social games and a leader in making “play” a core activity on mobile devices and social networking
sites. We believe our leadership position in social games is the result of our significant investment in our people, content, brand, technology and
infrastructure. Our leadership position in social games is defined by the following:
In 2014, we launched several new games on mobile including FarmVille 2: Country Escape, Hit It Rich! Slots, NFL Showdown, New
Zynga Poker, New Words With Friends, Wizard of Oz Slots and Looney Tunes Dash!. FarmVille 2: Country Escape launched globally on
April 17, 2014 and received Apple App Store “Editor’s Choice” featuring and Google Play top tier featuring at launch. FarmVille2: Country
Escape
also received Apple App Store Best of 2014 and Google Play Best Games of 2014 featuring. Looney Tunes Dash! launched on
December 19, 2014 and was featured on Apple App Store’s best new games on iOS. These launches demonstrate our commitment to developing
high quality mobile social games.
Consistent with our free-to-play business model, a small portion of our players have historically been payers. During the three months
ended December 31, 2014, we had approximately 1.1 million monthly unique payers or MUPs (excluding payers who use certain payment
methods for which unique payer data is not available and excluding NaturalMotion). Because the opportunity for social interactions increases as
the number of players increases, we believe that maintaining and growing our overall number of players, including the number of players who
may not purchase virtual goods, is important to the success of our business. As a result, we believe that the number of players who choose to
purchase virtual goods will continue to constitute a small portion of our overall players.
Our top three games historically have contributed the majority of our revenue. Our top three games accounted for 60%, 54% and 55% of
our online game revenue in 2014, 2013 and 2012, respectively.
4
•
Engaged and Global Community of Players.
According to our analytics, during the fourth quarter of 2014, we had 108 million
monthly active users or MAUs, and 25 million daily active users or DAUs on all our games combined. During the month of
December 2014, we were a top 20 publisher worldwide on iOS and Google Play based on monthly revenue as reported by AppAnnie.
Our players are also highly engaged, with our games being played by 27 million DAUs worldwide for the full year ended 2014.
According to comScore, in December 2014, Zynga is ranked number 2 in terms of total time spent on mobile gaming per user and
ranked number 7 in terms of total time spent on mobile.
•
Leading Portfolio of Social Games.
We have developed a number of popular social games including FarmVille, Words With
Friends, Zynga Poker, Hit It Rich! Slots
and
CSR Racing
.
•
Scalable Technology and Data.
We leverage our technology to increase player engagement, cross-promote our portfolio of games,
continually enhance existing games, launch new games and build the Zynga brand. We believe our scale results in network effects
that deliver compelling value to our players, and we are committed to making significant investments to grow our community of
players, their engagement and monetization over time. We believe that combining data analytics with creative game design enables
us to create a superior player experience.