Stockholders' Equity

3 Months Ended

Mar. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

9. Stockholders' Equity

We recorded stock-based expense related to grants of employee and consultant stock options, warrants, restricted stock and restricted stock units ("ZSUs") in our consolidated statements of operations as follows (in thousands):

	Three Months Ended March 31,
	2012		2011
	(unaudited)
Cost of revenue	$	6,818	$	551
Research and development		78,146		9,333
Sales and marketing		12,915		2,440
General and administrative		35,972		2,182
Total stock-based expenses	$	133,851	$	14,506

The following table shows stock option activity for the three months ended March 31, 2012 (in thousands, except weighted-average exercise price and contractual term):

	Outstanding Options
	Shares			Weighted- Average Exercise Price		Aggregate Intrinsic Value of Stock Options Outstanding		Weighted Average Contractual Term (In years)
	(unaudited)
Balance as of December 31, 2011		102,314		$	0.69	$	892,135		7.04
Stock option grants		—			—
Stock option forfeitures and cancellations		(947	)		0.47
Stock option exercises		(2,906	)		0.19
Balance as of March 31, 2012		98,461		$	0.71	$	1,225,126		7.05

The following table shows a summary of ZSU activity for the three months ended March 31, 2012 (in thousands, except weighted-average fair value and remaining term):

	Outstanding ZSU's
	Shares			Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value of Unvested ZSUs		Weighted Average Remaining Term (In years)
	(unaudited)
Unvested as of December 31, 2011		79,818		$	11.24	$	751,090		1.45
Granted		11,014			13.89
Vested		(9,166	)		11.57
Forfeited and cancelled		(4,937	)		10.86
Unvested as of March 31, 2012		76,729		$	11.61	$	1,008,986		1.62

In March 2012, we donated one million shares of Class A common stock to Zynga.org, an unaffiliated non-profit organization that was formed in March 2012 to support charitable causes in the communities in which we conduct business. Zynga.org is a separate legal entity in which we have no financial interest and do not exercise control and, accordingly, is not consolidated in our consolidated financial statements. For our contribution of Class A common stock we recorded $13.1 million of stock-based expense, which is included in general and administrative expenses, equal to the fair value of the shares of Class A common stock issued.