Zynga 2013 Annual Report Download - page 49

Table of Contents
We use bookings to evaluate the results of our operations, generate future operating plans and assess the performance of our company.
While we believe that this non-GAAP financial measure is useful in evaluating our business, this information should be considered as
supplemental in nature and is not meant as a substitute for revenue recognized in accordance with U.S. GAAP. In addition, other companies,
including companies in our industry, may calculate bookings differently or not at all, which reduces its usefulness as a comparative measure.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we believe provides useful information to investors and
others in understanding and evaluating our operating results in the same manner as our management and board of directors.
For a reconciliation of net income (loss) to adjusted EBITDA, see the section titled “—Non-GAAP Financial Measures” included in
“Item 6. Selected Consolidated Financial and Other Data” of this Annual Report on Form 10-K.
Key Operating Metrics
We manage our business by tracking several operating metrics: “DAUs,” which measure daily active users of our games, “MAUs,” which
measure monthly active users of our games, “MUUs,” which measure monthly unique users of our games, “MUPs,” which measure monthly
unique payers in our games, and “ABPU,” which measures our average daily bookings per average DAU, each of which is recorded by our
internal analytics systems.
DAUs . We define DAUs as the number of individuals who played one of our games during a particular day. Under this metric, an
individual who plays two different games on the same day is counted as two DAUs. Similarly, an individual who plays the same game on two
different platforms (e.g. web and mobile) or on two different social networks on the same day would be counted as two DAUs. Average DAUs
for a particular period is the average of the DAUs for each day during that period. We use DAUs as a measure of audience engagement.
MAUs. We define MAUs as the number of individuals who played a particular game in the 30-day period ending with the measurement
date. Under this metric, an individual who plays two different games in the same 30-day period is counted as two MAUs. Similarly, an
individual who plays the same game on two different platforms (e.g., web and mobile) or on two different social networks in a 30-day period
would be counted as two MAUs. Average MAUs for a particular period is the average of the MAUs at each month-end during that period. We
use MAUs as a measure of total game audience size.
MUUs. We define MUUs as the number of unique individuals who played any of our games on a particular platform in the 30-day period
ending with the measurement date. An individual who plays more than one of our games in a given 30-day period would be counted as a single
MUU. However, because we cannot always distinguish unique individuals playing across multiple platforms, an individual who plays any of our
games on two different platforms (e.g., web and mobile) in a given 30-
day period may be counted as two MUUs in the event that we do not have
data that allows us to de-duplicate the player. Because many of our players play more than one game in a given 30-
day period, MUUs are always
lower than MAUs in any given time period. Average MUUs for a particular period is the average of the MUUs at each month-end during that
period. We use MUUs as a measure of total audience reach across our network of games.
MUPs . We define MUPs as the number of unique players who made a payment at least once during the applicable month through a
payment method for which we can quantify the number of unique payers, including payers from certain of our mobile games. MUPs does not
include payers who use certain payment methods for which we cannot quantify the number of unique payers. If a player made a payment in our
games on two separate platforms (e.g., Facebook and Google+) in a period, the player would be counted as two unique payers in that period.
MUPs are presented as an average of the three months in the applicable quarter.
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