Zynga IPO road show presentation

44
Mark Pincus Founder and CEO

description

Source: http://www.businessinsider.com/its-out-this-is-zyngas-ipo-show-presentation-2011-12#mark-pincus-is-the-founder-and-ceo-of-zynga-1

Transcript of Zynga IPO road show presentation

Page 1: Zynga IPO road show presentation

Mark Pincus Founder and CEO

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Offering Summary

Offering Size

Over-Allotment

Filing Range

Expected Pricing

Tlcker /listing

Use of Proceeds

Underwriters

lOOM shares (all primary)

15% (all secondary)

$8.So-$10.00

Week of December 12, 2011

ZNGA / NASDAQ Global Select

General corporate purposes, capital expenditures, and tax withholding obligations related to the vesting of employee equity-based compensation (ZSUs)

Morgan Stanley Goldman Sachs SofA Merrill lynch Barclays Capital J.P. Morgan Allen & Company

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Investment Opportunity

1. Play is a core Internet and mobile activity

Jf zynga = play 2. Zynga is the leader in play

3. Only scalable platform

4. Repeatable and profitable model

5. Unmatched investment

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Our Vision

J4lzynga =play

--· ---

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Our Mission

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INOAOS~ ~ [jil•Uitt'(l}9J! !'I Maf1a Wars

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CityVille: The Most Popular Social Game in the Western World

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The Zynga Platform: Scalable, Repeatable with Network Effects

Network Effects

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Words With Friends: The Most Popular Word Game

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Zynga Platform Delivers Results

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Created 9 of the 10 biggest social games of all time

227M MAUs, 54M DAUs

28 minutes of play daily

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3 Tectonic Shifts in the Global Internet Landscape

Social 18

Apps 188 downloads

User Pay $98 virtual goods

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$SOOM Invested in the Future of Play

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The Future of Play

• Platform

• Games

• Team

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Our DNA Combines Social, Web and Game Talent

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John Schappert Chief Operating Officer

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Play Huge Global Market Opportunity

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A Better Model for Play 1--

Traditional

Development Cycle Years

Revenue Model Single Purchase

Engagement Days I Months

Data and Analytlcs Limited

Distribution Traditional Retail

I ~tzynga Months

Free-to-Play I Ongoing

Years

Continuous Feedback

Networ1< Virality

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Undisputed Leader in Play

9 of the Top 10 Social Games

Rank Developer Social Game

1 if zynga FarmVille

2 if zynga CityVille

4 ifzynga Cafe world

5 ifzynga Words With Friends

6 ifzynga FrontlerVille

7 l!lzynga Empires & Allies

8 l!lzynga Texas Hold' em Poker

9 ifzynga FtshVille

10 ifzynga Treasure Isle

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Zynga DAUs > 14 Competitors

'*zynga NeJU 14 Competitors

s.pt~ber 2011 D•ilv Active Users

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Best Brands in Social Games

2010

60M

Ill Game on Face book since January 2009 4 out of 5 Top Games on Face book

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34M 32M 29M

Wo.-o Maf1aWars 11M 8M 6M

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lOx DAU Growth in Mobile

Mobile Dally AcUft U.ers : Wob to Mobile

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VOA~·~I 991K

Oct2010 Oct2011

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Zynga Games are Social

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Powerful Virtual Goods Business Model

Play longer

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Virtual Goods

TTM Revenue

%of Total Revenue

YoYGrowth

Gift

$969M

95%

122%

Collect and Decorate

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· Accelerate Game Progress

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Drive Bookings

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Advertising- Early and Promising

Branded Vi rtua I Goods

Advertising

TTM Revenue $SSM

" of Total Revenue S%

YoY Growth 162%

Social Engagement Ads

Sponsorships Mobile

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Games as a live Service

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Llounch 111M loot

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Co-op Fa rming Acltfll010

Mobile -2010

Promottons

ExponSIOtl M..O 2011

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Quests ~r20t0

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fund

Chanty MitCh lOU

~:/1 Expansion

Stptfmber 2011

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Only Zynga ...

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Industry Leading Engines and Infrastructure 1--

Unmatched Player Experience

leading Engines •

Scalable Infrastructure

.

• Multi-platform: Flash 11, HTML 5, mobile

• Quickly serve game data

• High performance

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peak traffic

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• Securely store player data

• Always available

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Data and Analytics Drive Our Games

A/B Test for FarmVille Marketplace Layout

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9% Increase in Bookings

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Power of the Zynga Network

DAUs

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Cross Promotion from Zynga Network of ZZ7M MAUs and 54M DAUs

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Multiple Opportunities for Growth

Grow Existing Franchises

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Launch New Games

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Expand Internationally

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Increase Mobile Offerings . .

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More Platforms

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Largest Launch Lineup in Company History

2007 • 2008 200Q I • 1H20t1 R.:enl •nd Coming Soon

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Dave Wehner Chief Financial Officer

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Financial Highlights 1--

a Attractive business model

a Robust bookings growth

• Highly profitable

• Investing for long-term growth

• Strong balance sheet

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Free-to-Play Business Model

Key Metrics

227M Q3 2011 Average MAUs

54M Q3 2011 Average DAUs

7. 7 M TTM Unique Payers

$1.18 TTM Bookings

$339M TTM Adjusted EBITOA ,... IWII.III_....,._.,.••t-... """ .... -..-u

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Robust Bookings Growth 1--

Bookincs ($M) . -. ... --. .. ,.,,_~

S328

2009 2010

Full Yeu

9 Month Bookincs 2010 to 2011 V/Y Growth

llookl,.sGrOW1h 43%

Normo4ltod GrOWih 86%

2009 2010 2011

9 Months Ended 9/3()

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Longevity of Bookings from Enduring Game Franchises

AR ViUIE Normalized Bookings Indexed to Peak Quarter

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80% Book mas

60" -40"

20" OAUs

0% • Ql Q2 QS Q6 Q7 Q10

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New Games Drive Additional Growth

Bookings ($M)

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SS9S

S328

5184

• 2009 2010 2009 2010 2011

Full Year 9 Months Ended 9/30

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Investing in the Platform for Play

Adj. EBITOA Mar&in

More Games

R&D (ex·SBC) (SM)

$113

2010 2011

TlME-9/)0

49% 31%

. • More Powerful Infrastructure

% of OCF

Capital Elcpenditures ($M)

$199

$62

2010 2011

T1M Ended 9/)0

17% 70%

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Profitable Financial Model

Annual 9 Months 2010 2011

Cost of Revenue 21% 26%

R&D 17% 28%

S&M 13% 13%

G&A 8% 12%

D&A 5% 8%

Adjusted EBITDA 47% 28%

Capex 7% 22%

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