1. Team members
Mateo Fadul Gonzalez
Rafael Navarro
Domenic Millen
Aman Mehra
Siriorn Vichaiwatanapanich
Nabeeha Qazi

2. • Company Overview
• Zynga’s Industry Position
• Revenue Composition
• Company Value Chain Evolution
• Financial Analysis
• Strategy Analysis
• Zynga’s Future Prospects
Agenda

3. • Created in January 2007 and based in San Francisco, California
• The world’s leading provider of social game services
• Social Networks dependent (i.e. Facebook), also Mobile and Zynga.com
• Social games & internet gaming pioneer
• Leadership position: investment in their people, content, brand, technology
and infrastructure
• Connect the world through games
Overview

4. Profit Pool
Profit pool largely dominated by Retailers and
Software developers

5. Zynga’s Industry Position
• Develops its own
content and software
• Offer games through
online & mobile
platforms
• Use of existing
infrastructure (PC &
social websites)
• Huge savings (+ Profit)

6. Revenue Stream
Online Gaming (89%)
Advertising
(11%)
• Consumable Virtual Goods (energy)
• Durable Virtual Goods (tractors)
30%
70%
Geographical Distribution

7. Revenue Stream
• Zynga top three games accounts for 55% of Revenues, of the remaining 45%, no single
accounts for more than 10%
55%

8. Timeline
Company
started
First sale of
virtual
goods
Aquisition
of YoVille
First 3rd
party in-
game
advertising
IPO Launched
Draw
Something
Real-
money
gambling
Expand API to increase
game penetration
Texas
Holdem
Expanded
virtual
goods
concept to
other
games
Facebook
notific-
ations
Large
rollout of
mobile
games
Large scale
in-game
advertising
Slashed
workforce
Application
program-
ming
interface
(API)
Expand real-money
gambling business
Launched
Farmville
Agreement
with
Facebook
signed
Facebook
credits
Agreement
with
Facebook
revised
Zynga with
Friends
2007 2008 2009 2010 2011 2012 2013 2014 2015

9. Financial Performance
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
2009 2010 2011 2012
Online game
Advertising
Total Revenue
570%
85%
7%
-36% 226%
84%
Revenue Growth (in thousands $)

10. Financial Ratios
-43%
5%
-35%
-16%
-50%
-40%
-30%
-20%
-10%
0%
10%
2009 2010 2011 2012
Profit margin

11. Financial Ratios
1.08
0.57
0.30 0.29
-
0.20
0.40
0.60
0.80
1.00
1.20
2009 2010 2011 2012
Debt Ratio

12. Financial Ratios
2009 2010 2011 2012
ROA -20.41% 2.51% -16.07% -8.13%
ROE 245.94% 5.78% -23.11% -11.47%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
ROA & ROE

13. Financial Evaluation
ZNGA DNACF EA
Market Cap: 2.76B 3.43B 5.61B
Employees: 3,058 1,810 9,200
Revenue (ttm): 1.28B 2.45B 3.96B
Gross Margin (ttm): 73% 74% 64%
EBITDA (ttm): 54.00M 1.05B 393.00M
Operating Margin (ttm): -7% 40% 4%
Net Income (ttm): -209.45M 561.80M 175.00M
Net Profit Margin : -16% 23% 4%
EPS (ttm): -0.28 4.02 0.55
P/E (ttm): N/A 6.33 34.17
PEG (5 yr expected): -3.35 N/A 1.43
P/S (ttm): 2.16 1.39 1.41
Compare to 2 main competitors:
ZNGA = Zynga, Inc.
DNACF = DeNA Co., Ltd.
EA = Electronic Arts Inc.

14. Industry Future Prospects
Mobile games
becoming popular
Growing competition
from US & Intl. firms
Facebook opening up to more
game developers
Demand for sophisticated
games driving up costs

15. Zynga’s Future Prospects
Established customers
(players) base
Reduced dependence
on Facebook
Constant adaptations/
Innovations
Core mgt. team is not
the same
Reduced R&D expenses
Business integration
issues

16. Zynga’s Future Prospects
Industry Attractiveness
High Medium Low
MediumLowHigh
BusinessPosition

17. Zynga
Thank You...
Q&A