(Mark One) |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 45-3264542 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||
Class A common stock, par value $0.00003 per share | APP | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||||||||||
Item 5. | ||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 436,336 | $ | 502,152 | |||||||
Accounts receivable, net | 1,035,372 | 953,810 | |||||||||
Prepaid expenses and other current assets | 136,180 | 160,201 | |||||||||
Total current assets | 1,607,888 | 1,616,163 | |||||||||
Property and equipment, net | 172,994 | 173,331 | |||||||||
Goodwill | 1,827,197 | 1,842,850 | |||||||||
Intangible assets, net | 1,198,122 | 1,292,635 | |||||||||
Other assets | 456,316 | 434,208 | |||||||||
Total assets | $ | 5,262,517 | $ | 5,359,187 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 390,079 | $ | 371,702 | |||||||
Accrued and other current liabilities | 256,402 | 278,861 | |||||||||
Short-term debt | 35,563 | 215,000 | |||||||||
Deferred revenue | 80,480 | 78,559 | |||||||||
Total current liabilities | 762,524 | 944,122 | |||||||||
Long-term debt | 3,489,891 | 2,905,906 | |||||||||
Other non-current liabilities | 249,898 | 252,830 | |||||||||
Total liabilities | 4,502,313 | 4,102,858 | |||||||||
Commitments and contingencies (Note 4) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 | — | — | |||||||||
Class A and Class B Common Stock, $0.00003 par value—1,700,000,000 (Class A 1,500,000,000 and Class B 200,000,000) shares authorized, 328,958,886 (Class A 273,916,065 and Class B 55,042,821) and 339,886,712 (Class A 268,774,090 and Class B 71,112,622) shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 11 | 11 | |||||||||
Additional paid-in capital | 1,420,895 | 2,134,581 | |||||||||
Accumulated other comprehensive loss | (83,896) | (65,274) | |||||||||
Accumulated deficit | (576,806) | (812,989) | |||||||||
Total stockholders’ equity | 760,204 | 1,256,329 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,262,517 | $ | 5,359,187 |
March 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 761,075 | $ | 317,235 | ||||
Accounts receivable, net | 340,881 | 296,964 | ||||||
Prepaid expenses and other current assets | 82,865 | 48,795 | ||||||
Total current assets | 1,184,821 | 662,994 | ||||||
Property and equipment, net | 22,167 | 28,587 | ||||||
Operating lease right-of-use | 78,540 | 84,336 | ||||||
Goodwill | 249,385 | 249,773 | ||||||
Intangible assets, net | 1,036,800 | 1,086,332 | ||||||
Other assets | 49,686 | 42,571 | ||||||
Total assets | $ | 2,621,399 | $ | 2,154,593 | ||||
Liabilities, redeemable noncontrolling interest, and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 158,023 | $ | 147,275 | ||||
Accrued liabilities | 95,102 | 95,057 | ||||||
Licensed asset obligation | 17,666 | 18,760 | ||||||
Short-term debt | 18,310 | 15,210 | ||||||
Deferred revenue | 85,892 | 86,886 | ||||||
Operating lease liabilities | 21,726 | 22,206 | ||||||
Deferred acquisition costs, current | 89,877 | 212,658 | ||||||
Total current liabilities | 486,596 | 598,052 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 2,137,612 | 1,583,990 | ||||||
Operating lease liabilities, noncurrent | 66,604 | 71,755 | ||||||
Other non-current liabilities | 60,309 | 59,032 | ||||||
Total liabilities | 2,751,121 | 2,312,829 | ||||||
Contingencies (Note 5) | 0 | 0 | ||||||
Redeemable noncontrolling interest | 255 | 309 | ||||||
Stockholders’ deficit: | ||||||||
Convertible preferred stock, 109,090,908 shares authorized, issued, and outstanding at March 31, 2021 and December 31, 2020; respectively | 399,589 | 399,589 | ||||||
Common stock A, $0.00003 par value—386,400,000 shares authorized, 184,817,898 and 183,800,251 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 6 | 6 | ||||||
Common stock F, $0.00003 par value—43,200,000 shares authorized, 42,564,150 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 1 | 1 | ||||||
Additional paid-in capital | 493,465 | 453,655 | ||||||
Accumulated other comprehensive income (loss) | (117 | ) | 604 | |||||
Accumulated deficit | (1,022,921 | ) | (1,012,400 | ) | ||||
Total stockholders’ deficit | (129,977 | ) | (158,545 | ) | ||||
Total liabilities, redeemable noncontrolling interest, and stockholders’ deficit | $ | 2,621,399 | $ | 2,154,593 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | $ | 1,058,115 | $ | 715,405 | |||||||
Costs and expenses: | |||||||||||
Cost of revenue | 294,148 | 261,960 | |||||||||
Sales and marketing | 226,687 | 202,976 | |||||||||
Research and development | 155,323 | 144,851 | |||||||||
General and administrative | 42,398 | 44,571 | |||||||||
Total costs and expenses | 718,556 | 654,358 | |||||||||
Income from operations | 339,559 | 61,047 | |||||||||
Other income (expense): | |||||||||||
Interest expense | (74,182) | (74,511) | |||||||||
Other income, net | 2,568 | 10,111 | |||||||||
Total other expense, net | (71,614) | (64,400) | |||||||||
Income (loss) before income taxes | 267,945 | (3,353) | |||||||||
Provision for income taxes | 31,762 | 1,165 | |||||||||
Net income (loss) | 236,183 | (4,518) | |||||||||
Less: Net income attributable to participating securities | $ | 1,451 | $ | — | |||||||
Net income (loss) attributable to common stock—Basic | $ | 234,732 | $ | (4,518) | |||||||
Net income (loss) attributable to common stock—Diluted | $ | 234,784 | $ | (4,518) | |||||||
Net income (loss) per share attributable to Class A and Class B common stockholders: | |||||||||||
Basic | $ | 0.70 | $ | (0.01) | |||||||
Diluted | $ | 0.67 | $ | (0.01) | |||||||
Weighted average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders: | |||||||||||
Basic | 335,794,739 | 373,160,029 | |||||||||
Diluted | 348,596,295 | 373,160,029 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 603,877 | $ | 260,178 | ||||
Costs and expenses: | ||||||||
Cost of revenue | 223,061 | 76,453 | ||||||
Sales and marketing | 265,513 | 128,667 | ||||||
Research and development | 60,876 | 19,112 | ||||||
General and administrative | 42,962 | 10,810 | ||||||
Total costs and expenses | 592,412 | 235,042 | ||||||
Income from operations | 11,465 | 25,136 | ||||||
Other income (expense): | ||||||||
Interest expense and loss on settlement of debt | (35,010 | ) | (18,629 | ) | ||||
Other income, net | 9,790 | 1,021 | ||||||
Total other expense | (25,220 | ) | (17,608 | ) | ||||
Income (loss) before income taxes | (13,755 | ) | 7,528 | |||||
Provision for (benefit from) income taxes | (3,180 | ) | 2,864 | |||||
Net income (loss) | (10,575 | ) | 4,664 | |||||
Add: Net loss attributable to noncontrolling interest | 54 | 0 | ||||||
Net income (loss) attributable to AppLovin | (10,521 | ) | 4,664 | |||||
Less: Net income attributable to participating securities | — | (1,677 | ) | |||||
Net income (loss) attributable to common stock—Basic | (10,521 | ) | 2,987 | |||||
Net income (loss) attributable to common stock—Diluted | $ | (10,521 | ) | $ | 3,004 | |||
Net income (loss) per share attributable to common stockholders: | ||||||||
Basic | $ | (0.05 | ) | $ | 0.01 | |||
Diluted | $ | (0.05 | ) | $ | 0.01 | |||
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | ||||||||
Basic | 222,408,568 | 210,898,346 | ||||||
Diluted | 222,408,568 | 214,053,440 | ||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income (loss) | $ | 236,183 | $ | (4,518) | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment, net of tax | (18,622) | 10,006 | |||||||||
Other comprehensive income (loss), net of tax | (18,622) | 10,006 | |||||||||
Comprehensive income | 217,561 | 5,488 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | $ | (10,575 | ) | $ | 4,664 | |||
Other comprehensive loss, net of tax: | ||||||||
Foreign currency translation | (721 | ) | (36 | ) | ||||
Interest rate swap—(loss), net of tax provision of NaN and $0.5 million, respectively | 0 | (1,867 | ) | |||||
Total other comprehensive loss | (721 | ) | (1,903 | ) | ||||
54 | — | |||||||
Total comprehensive income (loss) attributable to common stockholders | $ | (11,242 | ) | $ | 2,761 | |||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||
Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | 339,886,712 | $ | 11 | $ | 2,134,581 | $ | (65,274) | $ | (812,989) | $ | 1,256,329 | ||||||||||||||||||||||||
Stock issued in connection with equity awards | 3,936,518 | — | 23,429 | — | — | 23,429 | |||||||||||||||||||||||||||||
Shares withheld related to net share settlement | (1,397,947) | — | (80,144) | — | — | (80,144) | |||||||||||||||||||||||||||||
Repurchase of Class A common stock | (13,466,397) | — | (752,224) | — | — | (752,224) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 95,253 | — | — | 95,253 | |||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax | — | — | — | (18,622) | — | (18,622) | |||||||||||||||||||||||||||||
Net income | — | — | — | — | 236,183 | 236,183 | |||||||||||||||||||||||||||||
Balance as of March 31, 2024 | 328,958,886 | $ | 11 | $ | 1,420,895 | $ | (83,896) | $ | (576,806) | $ | 760,204 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | 373,873,683 | $ | 11 | $ | 3,155,748 | $ | (83,382) | $ | (1,169,700) | $ | 1,902,677 | ||||||||||||||||||||||||
Stock issued in connection with equity awards | 4,061,015 | — | 2,974 | — | — | 2,974 | |||||||||||||||||||||||||||||
Shares withheld related to net share settlement | (1,281,849) | — | (19,167) | — | — | (19,167) | |||||||||||||||||||||||||||||
Repurchase of Class A common stock | (5,396,617) | — | (76,358) | — | — | (76,358) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 82,966 | — | — | 82,966 | |||||||||||||||||||||||||||||
Total other comprehensive income, net of tax | — | — | — | 10,006 | — | 10,006 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (4,518) | (4,518) | |||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 371,256,232 | $ | 11 | $ | 3,146,163 | $ | (73,376) | $ | (1,174,218) | $ | 1,898,580 |
AppLovin Corporation Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Deficit (In thousands, except share data) unaudted | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non-controlling | Convertible Preferred Stock | Class A Common Stock | Class F Common Stock | Additional Paid-In | Comprehensive Income | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||
Interest | Shares | Amount | Shares | Amount | Shares | Amount | Capital | (Loss) | Deficit | Deficit | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 309 | 109,090,908 | $ | 399,589 | | 183,800,251 | $ | 6 | 42,564,150 | $ | 1 | $ | 453,655 | $ | 604 | $ | (1,012,400 | ) | $ | (158,545 | ) | ||||||||||||||||||||||
Exercises and vesting of exercised Class A common stock options | — | — | — | 1,232,156 | — | — | — | 10,143 | — | — | 10,143 | |||||||||||||||||||||||||||||||||
Repurchase of Class A common stock | — | — | — | (214,509 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | 29,667 | — | — | 29,667 | |||||||||||||||||||||||||||||||||
Total other comprehens i veloss | — | — | — | — | — | — | — | — | (721 | ) | — | (721 | ) | |||||||||||||||||||||||||||||||
Net loss | (54 | ) | — | — | — | — | — | — | — | — | (10,521 | ) | (10,521 | ) | ||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 255 | 109,090,908 | $ | 399,589 | 184,817,898 | $ | 6 | 42,564,150 | $ | 1 | $ | 493,465 | $ | (117) | $ | (1,022,921 | ) | $ | (129,977 | ) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | 236,183 | $ | (4,518) | |||||||
Adjustments to reconcile net income (loss) to operating activities: | |||||||||||
Amortization, depreciation and write-offs | 112,667 | 128,208 | |||||||||
Stock-based compensation | 95,253 | 82,966 | |||||||||
Other | 8,540 | 9,139 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (84,836) | 65,614 | |||||||||
Prepaid expenses and other assets | 26,813 | (17,549) | |||||||||
Accounts payable | 18,056 | 9,722 | |||||||||
Accrued and other liabilities | (19,897) | 15,080 | |||||||||
Net cash provided by operating activities | 392,779 | 288,662 | |||||||||
Investing Activities | |||||||||||
Purchase of non-marketable equity securities | (28,333) | (16,834) | |||||||||
Other investing activities | (3,302) | 3,859 | |||||||||
Net cash used in investing activities | (31,635) | (12,975) | |||||||||
Financing Activities | |||||||||||
Repurchases of stock | (752,224) | (64,897) | |||||||||
Principal repayments of debt | (668,972) | (8,327) | |||||||||
Payment of withholding taxes related to net share settlement | (80,144) | (19,167) | |||||||||
Payments of licensed asset obligation | — | (15,254) | |||||||||
Proceeds from issuance of debt | 1,072,330 | — | |||||||||
Proceeds from exercise of stock options | 9,782 | 2,906 | |||||||||
Other financing activities | (5,384) | (6,676) | |||||||||
Net cash used in financing activities | (424,612) | (111,415) | |||||||||
Effect of foreign exchange rate on cash and cash equivalents | (2,348) | 1,137 | |||||||||
Net increase (decrease) in cash and cash equivalents | (65,816) | 165,409 | |||||||||
Cash and cash equivalents at beginning of the period | 502,152 | 1,080,484 | |||||||||
Cash and cash equivalents at end of the period | $ | 436,336 | $ | 1,245,893 |
AppLovin Corporation | ||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||||||||||||||||||||||||
unaudted | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable | Convertible Preferred Stock | Additional | Other | Total | ||||||||||||||||||||||||||||||||||||||||
Non-controlling | Class A Common Stock | Class F Common Stock | Paid-In | Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||||||||||||||||||||
Interest | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Loss | Deficit | Deficit | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | — | 109,090,908 | $ | 399,589 | 177,593,772 | $ | 6 | 42,564,150 | $ | 1 | $ | 235,190 | $ | (4,140 | ) | $ | (887,213) | | $ | (256,567 | ) | ||||||||||||||||||||||
Exercises and vesting of early exercised Class A common stock options | — | — | — | 442,503 | — | — | — | 145 | — | — | 145 | |||||||||||||||||||||||||||||||||
Repurchase of unvested Class A common stock related to early exercised stock options | — | — | — | (425,001 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Repurchase of Class A common stock | — | — | — | (114,000 | ) | — | — | — | (760 | ) | — | — | (760 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | 3,462 | — | — | 3,462 | |||||||||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | — | — | — | — | (1,903 | ) | — | (1,903 | ) | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | 4,664 | 4,664 | |||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | — | 109,090,908 | $ | 399,589 | 177,497,274 | $ | 6 | 42,564,150 | $ | 1 | $ | 238,037 | $ | (6,043 | ) | $ | (882,549 | ) | $ | (250,959 | ) | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Supplemental non-cash investing and financing activities disclosures: | |||||||||||
Right-of-use assets acquired under finance leases | $ | 9,942 | $ | 45,318 | |||||||
Acquisitions not yet paid | $ | 13,088 | $ | 12,969 | |||||||
Repurchase of common stock included in accrued liabilities | $ | — | $ | 11,461 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest, net | $ | 71,189 | $ | 67,006 | |||||||
Cash paid for income taxes, net of refunds | $ | 3,578 | $ | 1,816 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Operating Activities | ||||||||
Net income (loss) | $ | (10,575 | ) | $ | 4,664 | |||
Adjustments to reconcile net income (loss) to operating activities: | ||||||||
Amortization, depreciation and write-offs | 88,817 | 32,279 | ||||||
Amortization of debt issuance costs and discount | 4,303 | 1,421 | ||||||
Stock-based compensation | 29,959 | 3,462 | ||||||
Change in operating right-of-use | 5,796 | 1,184 | ||||||
Loss on settlement of debt | 16,852 | 0 | ||||||
Net unrealized gains on fair value remeasurement of financial instruments | (11,214 | ) | 0 | |||||
Net gain on foreign currency remeasurement | (1,305 | ) | (49 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (43,917 | ) | (3,435 | ) | ||||
Prepaid expenses and other current assets | (18,775 | ) | 4,450 | |||||
Other assets | 472 | 53 | ||||||
Accounts payable | 9,370 | 5,352 | ||||||
Operating lease liabilities | (5,631 | ) | (1,098 | ) | ||||
Accrued and other liabilities | (1,339 | ) | (2,942 | ) | ||||
Deferred revenue | (994 | ) | 346 | |||||
Net cash provided by operating activities | 61,819 | 45,687 | ||||||
Investing Activities | ||||||||
Purchase of property and equipment | (121 | ) | (200 | ) | ||||
Acquisitions, net of cash acquired | (4,152 | ) | (54,499 | ) | ||||
Purchase of non-marketable investments and other | (14,000 | ) | 0 | |||||
Net cash used in investing activities | (18,273 | ) | (54,699 | ) | ||||
Financing Activities | ||||||||
Proceeds from debt issuance, net of issuance costs | 844,729 | 49,835 | ||||||
Payments of debt principal | (302,327 | ) | (3,053 | ) | ||||
Payments of finance leases | (840 | ) | (1,669 | ) | ||||
Proceeds from exercise of stock options | 12,882 | 145 | ||||||
Payments of deferred acquisition costs | (152,245 | ) | (11,019 | ) | ||||
Repurchases of common stock | 0 | (760 | ) | |||||
Payments of deferred IPO costs | (1,825 | ) | 0 | |||||
Net cash provided by financing activities | 400,374 | 33,479 | ||||||
Effect of foreign exchange rate on cash and cash equivalents | (80 | ) | 7 | |||||
Net increase in cash and cash equivalents | 443,840 | 24,474 | ||||||
Cash and cash equivalents at beginning of the period | 317,235 | 396,247 | ||||||
Cash and cash equivalents at end of the period | 761,075 | 420,721 | ||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Supplemental non-cash investing and financing activities disclosures: | ||||||||
Acquisition not yet paid | $ | 32,161 | $ | 5,370 | ||||
Deferred IPO costs not yet paid | $ | 1,834 | $ | 0 | ||||
Assets acquired under finance leases | $ | 445 | $ | 1,419 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest on debt | $ | 15,662 | $ | 15,837 | ||||
Cash paid for income taxes | $ | 221 | $ | 2,056 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Software Platform Revenue | $ | 678,370 | $ | 354,758 | |||||||
In-App Purchase Revenue | 259,196 | 251,328 | |||||||||
In-App Advertising Revenue | 120,549 | 109,319 | |||||||||
Total Apps Revenue | 379,745 | 360,647 | |||||||||
Total Revenue | $ | 1,058,115 | $ | 715,405 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Business Revenue - Apps | $ | 156,963 | $ | 99,749 | ||||
Business Revenue - Software Platform | 88,419 | 46,512 | ||||||
Total Business Revenue | 245,382 | 146,261 | ||||||
Consumer Revenue | 358,495 | 113,917 | ||||||
Total Revenue | $ | 603,877 | $ | 260,178 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
United States | $ | 634,604 | $ | 439,319 | |||||||
Rest of the World | 423,511 | 276,086 | |||||||||
Total Revenue | $ | 1,058,115 | $ | 715,405 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
United States | $ | 366,166 | $ | 162,088 | ||||
Rest of the World | 237,711 | 98,090 | ||||||
Total Revenue | $ | 603,877 | $ | 260,178 | ||||
As of March 31, 2021 | ||||||||||||||||||
Balance Sheet Location | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | ||||||||||||||||||
Money market funds | Cash and cash equivalents | $ | 477 | $ | 477 | $ | — | $ | — | |||||||||
Marketable equity securities | Prepaid expenses and other current assets | 5,354 | 5,354 | — | — | |||||||||||||
Embedded derivative | Long-term debt | 16,740 | — | — | 16,740 | |||||||||||||
Total financial assets | $ | 22,571 | $ | 5,831 | $ | — | $ | 16,740 | ||||||||||
Financial Liability: | ||||||||||||||||||
Convertible security | Deferred acquisition costs, current | $ | 47,200 | $ | — | $ | — | $ | 47,200 |
As of December 31, 2020 | ||||||||||||||||||||
Balance Sheet Location | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Money market funds | Cash and cash equivalents | $ | 6,413 | $ | 6,413 | $ | — | $ | — | |||||||||||
Embedded derivative | Long-term debt | 5,680 | — | — | 5,680 | |||||||||||||||
Total financial assets | $ | 12,093 | $ | 6,413 | $ | — | $ | 5,680 | ||||||||||||
Financial Liability: | ||||||||||||||||||||
Convertible security | Deferred acquisition costs, current | $ | 46,500 | $ | — | $ | — | $ | 46,500 |
As of March 31, 2024 | ||||||||||||||||||||||||||||||||
Balance Sheet Location | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Money market deposit accounts | Cash and cash equivalents | $ | 1,370 | $ | 1,370 | $ | — | $ | — | |||||||||||||||||||||||
Total financial assets | $ | 1,370 | $ | 1,370 | $ | — | $ | — |
As of December 31, 2023 | ||||||||||||||||||||||||||||||||
Balance Sheet Location | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Money market deposit accounts | Cash and cash equivalents | $ | 1,352 | $ | 1,352 | $ | — | $ | — | |||||||||||||||||||||||
Total financial assets | $ | 1,352 | $ | 1,352 | $ | — | $ | — |
Embedded Derivative | Convertible Security | |||||||
Balance as of December 31, 2020 | $ | 5,680 | $ | 46,500 | ||||
Addition related to the issuance of term loans in February 2021 | 5,630 | — | ||||||
Extinguishment of term loans in February 2021 | (1,130 | ) | — | |||||
Change in fair value recognized in earnings | 6,560 | 700 | ||||||
Balance as of March 31, 2021 | $ | 16,740 | $ | 47,200 | ||||
Cash | $ | 1,043 | ||
Accounts receivable and other current assets | 1,457 | |||
Intangible assets | ||||
Apps—estimated useful life of 5 years | 17,040 | |||
Tradename—estimated useful life of 5 years | 260 | |||
Developed Technology—estimated useful life of 2 years | 590 | |||
Property, equipment and other tangible assets | 369 | |||
Goodwill | 9,805 | |||
Accounts payable, accrued liabilities and other liabilities | (4,935 | ) | ||
Total purchase consideration | $ | 25,629 | ||
Software Platform | Apps | Total | |||||||||
December 31, 2023 | $ | 1,497,109 | $ | 345,741 | $ | 1,842,850 | |||||
Foreign currency translation | (15,653) | — | (15,653) | ||||||||
March 31, 2024 | $ | 1,481,456 | $ | 345,741 | $ | 1,827,197 |
December 31, 2020 | $ | 249,773 | ||
Foreign currency translation | (388 | ) | ||
March 31, 2021 | $ | 249,385 | ||
Weighted- Average Remaining Useful Life (Years) | As of March 31, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Book Value | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||
Apps | 3.6 | $ | 1,828,387 | $ | (1,225,576) | $ | 602,811 | $ | 1,818,907 | $ | (1,152,611) | $ | 666,296 | ||||||||||||||||
Customer relationships | 7.9 | 516,021 | (123,578) | 392,443 | 519,175 | (111,374) | 407,801 | ||||||||||||||||||||||
User base | 2.0 | 68,817 | (49,312) | 19,505 | 68,817 | (46,874) | 21,943 | ||||||||||||||||||||||
License asset | 1.8 | 59,207 | (34,529) | 24,678 | 59,207 | (31,003) | 28,204 | ||||||||||||||||||||||
Developed technology | 3.3 | 206,481 | (96,599) | 109,882 | 207,900 | (88,716) | 119,184 | ||||||||||||||||||||||
Other | 3.5 | 73,102 | (24,299) | 48,803 | 71,196 | (21,989) | 49,207 | ||||||||||||||||||||||
Total intangible assets | $ | 2,752,015 | $ | (1,553,893) | $ | 1,198,122 | $ | 2,745,202 | $ | (1,452,567) | $ | 1,292,635 |
Weighted- | ||||||||||||||||||||||||||||
Average | As of March 31, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||
Remaining | Gross | Gross | ||||||||||||||||||||||||||
Useful Life | Carrying | Accumulated | Net Book | Carrying | Accumulated | Net Book | ||||||||||||||||||||||
(Years) | Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||||||
Long-lived intangible assets: | ||||||||||||||||||||||||||||
Apps | 4.2 | $ | 1,239,252 | $ | (290,213 | ) | $ | 949,039 | $ | 1,222,417 | $ | (232,832 | ) | $ | 989,585 | |||||||||||||
User base | 5.0 | 68,817 | (20,055 | ) | 48,762 | 68,817 | (17,617 | ) | 51,200 | |||||||||||||||||||
License asset | 0.6 | 28,551 | (15,266 | ) | 13,285 | 28,551 | (10,918 | ) | 17,633 | |||||||||||||||||||
Developed technology | 1.2 | 14,946 | (9,812 | ) | 5,134 | 14,946 | (8,489 | ) | 6,457 | |||||||||||||||||||
Other | 7.4 | 23,300 | (2,720 | ) | 20,580 | 23,321 | (1,864 | ) | 21,457 | |||||||||||||||||||
Total long-lived intangible assets | 1,374,866 | (338,066 | ) | 1,036,800 | 1,358,052 | (271,720 | ) | 1,086,332 | ||||||||||||||||||||
Short-lived intangible assets: | ||||||||||||||||||||||||||||
Apps | 0.4 | 33,584 | (29,370 | ) | 4,214 | 29,869 | (25,599 | ) | 4,270 | |||||||||||||||||||
Total intangible assets | $ | 1,408,450 | $ | (367,436 | ) | $ | 1,041,014 | $ | 1,387,921 | $ | (297,319 | ) | $ | 1,090,602 | ||||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenue | $ | 82,185 | $ | 27,576 | ||||
Sales and marketing | 3,209 | 2,694 | ||||||
Total | $ | 85,394 | $ | 30,270 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenue | $ | 88,142 | $ | 98,644 | |||||||
Sales and marketing | 16,819 | 16,788 | |||||||||
Total | $ | 104,961 | $ | 115,432 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenue | $ | 109 | $ | 29 | ||||
Sales and marketing | 1,819 | 452 | ||||||
Research and development | 6,465 | 1,527 | ||||||
General and administrative | 21,566 | 1,454 | ||||||
Total | $ | 29,959 | $ | 3,462 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenue | $ | 1,468 | $ | 1,316 | |||||||
Sales and marketing | 21,963 | 16,683 | |||||||||
Research and development | 59,446 | 49,929 | |||||||||
General and administrative | 12,376 | 15,038 | |||||||||
Total | $ | 95,253 | $ | 82,966 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic EPS | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 236,183 | $ | (4,518) | |||||||
Less: | |||||||||||
Income attributable to options exercises by promissory notes | (726) | — | |||||||||
Income attributable to common stock subject to share repurchase agreements | (724) | — | |||||||||
Income attributable to unvested early exercised options | (1) | — | |||||||||
Net income (loss) attributable to Class A and Class B common stockholders—Basic | $ | 234,732 | $ | (4,518) | |||||||
Denominator: | |||||||||||
Weighted-average shares used in computing net income (loss) per share—Basic | 335,794,739 | 373,160,029 | |||||||||
Net income (loss) per share attributable to common stock—Basic | $ | 0.70 | $ | (0.01) | |||||||
Diluted EPS | |||||||||||
Numerator: | |||||||||||
Net income (loss) attributable to AppLovin | 236,183 | (4,518) | |||||||||
Less: | |||||||||||
Income attributable to options exercises by promissory notes | (700) | — | |||||||||
Income attributable to common stock subject to share repurchase agreements | (698) | — | |||||||||
Income attributable to unvested early exercised options | (1) | — | |||||||||
Net income (loss) attributable to Class A and Class B common stockholders—Diluted | $ | 234,784 | $ | (4,518) | |||||||
Denominator: | |||||||||||
Weighted-average shares used in computing net income (loss) per share—Basic | 335,794,739 | 373,160,029 | |||||||||
Weighted-average dilutive stock awards | 12,801,556 | — | |||||||||
Weighted-average shares used in computing net income (loss) per share—Diluted | 348,596,295 | 373,160,029 | |||||||||
Net income (loss) per share attributable to common stock—Diluted | $ | 0.67 | $ | (0.01) |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Basic EPS | ||||||||
Numerator: | ||||||||
Net income (loss) attributable to AppLovin | $ | (10,521) | $ | 4,664 | ||||
Less: | ||||||||
Income attributable to convertible preferred stock | — | (1,545 | ) | |||||
Income attributable to options exercises by promissory notes | — | (82 | ) | |||||
Income attributable to unvested early exercised options | — | 0 | ||||||
Income attributable to unvested RSA’s | — | (50 | ) | |||||
Net income (loss) attributable to common stock—Basic | $ | (10,521 | ) | $ | 2,987 | |||
Denominator: | ||||||||
Weighted-average shares used in computing net income (loss) per share—Basic | 222,408,568 | 210,898,346 | ||||||
Net income (loss) per share attributable to common stock—Basic | $ | (0.05 | ) | $ | 0.01 | |||
Diluted EPS | ||||||||
Numerator: | ||||||||
Net income (loss) attributable to AppLovin | $ | (10,521 | ) | $ | 4,664 | |||
Less: | ||||||||
Income attributable to convertible preferred stock | — | (1,530 | ) | |||||
Income attributable to options exercises by promissory notes | — | (81 | ) | |||||
Income attributable to unvested early exercised options | — | 0 | ||||||
Income attributable to unvested RSA’s | — | (49 | ) | |||||
Net income (loss) attributable to common stock—Diluted | $ | (10,521 | ) | $ | 3,004 | |||
Denominator: | ||||||||
Weighted-average shares used in computing net income (loss) per share—Basic | 222,408,568 | 210,898,346 | ||||||
Weighted-average dilutive stock options | — | 3,155,094 | ||||||
Weighted-average shares used in computing net income (loss) per share—Diluted | 222,408,568 | 214,053,440 | ||||||
Net income (loss) per share attributable to common stock—Diluted | $ | (0.05 | ) | $ | 0.01 | |||
As of March 31, | |||||||||||
2024 | 2023 | ||||||||||
Stock options exercised for promissory notes | 85,000 | 1,399,999 | |||||||||
Early exercised stock options | 559 | 38,250 | |||||||||
Stock options | 12,265 | 10,582,241 | |||||||||
Unvested RSUs | 2,006,934 | 16,195,182 | |||||||||
ESPP | — | 842,419 | |||||||||
Total antidilutive potential common shares | 2,104,758 | 29,058,091 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Convertible preferred stock | 109,090,908 | 109,090,908 | ||||||
Stock options exercised for promissory notes | 3,874,999 | 5,709,999 | ||||||
Early exercised stock options | 458,499 | 0 | ||||||
Unvested RSAs | 782,895 | 3,252,519 | ||||||
Stock options | 19,581,567 | 1,902,237 | ||||||
Total antidilutive potential common shares | 133,788,868 | 119,955,663 | ||||||
Three Months Ended March 31 | ||||||||
(In thousands) | 2021 | 2020 | ||||||
Provision for (benefit from) income taxes | $ | (3,180 | ) | $ | 2,864 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue: | |||||||||||
Software Platform | $ | 678,370 | $ | 354,758 | |||||||
Apps | 379,745 | 360,647 | |||||||||
Total Revenue | $ | 1,058,115 | $ | 715,405 | |||||||
Segment Adjusted EBITDA: | |||||||||||
Software Platform | $ | 492,020 | $ | 218,694 | |||||||
Apps | 56,751 | 55,004 | |||||||||
Total Segment Adjusted EBITDA | $ | 548,771 | $ | 273,698 | |||||||
Interest expense | $ | (74,182) | $ | (74,511) | |||||||
Other income, net | 3,397 | 9,771 | |||||||||
Amortization, depreciation and write-offs | (112,667) | (128,208) | |||||||||
Loss on disposal of long lived assets | (1,646) | — | |||||||||
Non-operating foreign exchange gain (loss) | (106) | 672 | |||||||||
Stock-based compensation | (95,253) | (82,966) | |||||||||
Acquisition-related expense | (369) | (517) | |||||||||
Restructuring costs | — | (1,292) | |||||||||
Income (loss) before income taxes | $ | 267,945 | $ | (3,353) |
Twelve months ended March 31, | ||||||||
2021 | 2020 | |||||||
Enterprise Clients | 194 | 164 | ||||||
Revenue Per Enterprise Client (in thousands) | $ | 4,129 | $ | 3,687 |
Three months ended March 31, | ||||||||
2021 | 2020 | |||||||
Software Platform Enterprise Clients | 193 | 130 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Monthly Active Payers (millions) | 1.8 | 1.8 | |||||||||
Average Revenue Per Monthly Active Payer | $ | 48 | $ | 46 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Monthly Active Payers (millions) | 3.1 | 1.1 | ||||||
Average Revenue Per Monthly Active Payer | $ | 38 | $ | 34 |
Three months ended March 31, | ||||||||
2021 | 2020 | |||||||
Total Software Transaction Value | $ | 147,901 | $ | 57,512 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands, except percentages) | |||||||||||
Revenue | $ | 1,058,115 | $ | 715,405 | |||||||
Net income (loss) | $ | 236,183 | $ | (4,518) | |||||||
Net Margin | 22.3% | (0.6)% | |||||||||
Adjusted as follows: | |||||||||||
Interest expense | 74,182 | 74,511 | |||||||||
Other (income), net | (3,397) | (9,771) | |||||||||
Provision for income taxes | 31,762 | 1,165 | |||||||||
Amortization, depreciation and write-offs | 112,667 | 128,208 | |||||||||
Loss on disposal of long lived assets | 1,646 | — | |||||||||
Non-operating foreign exchange (gain) loss | 106 | (672) | |||||||||
Stock-based compensation | 95,253 | 82,966 | |||||||||
Acquisition-related expense | 369 | 517 | |||||||||
Restructuring costs | — | 1,292 | |||||||||
Adjusted EBITDA | $ | 548,771 | $ | 273,698 | |||||||
Adjusted EBITDA Margin | 51.9 | % | 38.3 | % |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net income (loss) | (10,575 | ) | 4,664 | |||||
Adjusted as follows: | ||||||||
Interest expense and loss on settlement of debt | 35,010 | 18,629 | ||||||
Other income, net | (8,626 | ) | (1,110 | ) | ||||
Provision for (benefit from) income taxes | (3,180 | ) | 2,864 | |||||
Amortization, depreciation and write-offs | 88,817 | 32,279 | ||||||
Non-operating foreign exchange gain | (1,281 | ) | — | |||||
Stock-based compensation | 29,959 | 3,462 | ||||||
Acquisition-related expense | 938 | 1,657 | ||||||
Adjusted EBITDA | 131,062 | 62,445 | ||||||
Adjusted EBITDA Margin | 21.7 | % | 24.0 | % | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 392,779 | $ | 288,662 | |||||||
Less: | |||||||||||
Purchase of property and equipment | (227) | (70) | |||||||||
Principal payments of finance leases | (4,959) | (5,447) | |||||||||
Free Cash Flow | $ | 387,593 | $ | 283,145 | |||||||
Net cash used in investing activities | $ | (31,635) | $ | (12,975) | |||||||
Net cash used in financing activities | $ | (424,612) | $ | (111,415) |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Revenue | $ | 1,058,115 | $ | 715,405 | ||||||||||
Costs and expenses: | ||||||||||||||
Cost of revenue(1)(2) | 294,148 | 261,960 | ||||||||||||
Sales and marketing(1)(2) | 226,687 | 202,976 | ||||||||||||
Research and development(1) | 155,323 | 144,851 | ||||||||||||
General and administrative(1) | 42,398 | 44,571 | ||||||||||||
Total costs and expenses | 718,556 | 654,358 | ||||||||||||
Income from operations | 339,559 | 61,047 | ||||||||||||
Other income (expense): | ||||||||||||||
Interest expense and loss on settlement of debt | (74,182) | (74,511) | ||||||||||||
Other income, net | 2,568 | 10,111 | ||||||||||||
Total other expense, net | (71,614) | (64,400) | ||||||||||||
Income (loss) before income taxes | 267,945 | (3,353) | ||||||||||||
Provision for income taxes | 31,762 | 1,165 | ||||||||||||
Net income (loss) | $ | 236,183 | $ | (4,518) |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Cost of revenue | $ | 1,468 | $ | 1,316 | ||||||||||
Sales and marketing | 21,963 | 16,683 | ||||||||||||
Research and development | 59,446 | 49,929 | ||||||||||||
General and administrative | 12,376 | 15,038 | ||||||||||||
Total stock-based compensation | $ | 95,253 | $ | 82,966 |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||
Cost of revenue | $ | 88,142 | $ | 98,644 | ||||||||||
Sales and marketing | 16,819 | 16,788 | ||||||||||||
Total amortization expense related to acquired intangibles | $ | 104,961 | $ | 115,432 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Revenue | $ | 603,877 | $ | 260,178 | ||||
Costs and expenses: | ||||||||
Cost of revenue (1)(2) | 223,061 | 76,453 | ||||||
Sales and marketing (1)(2) | 265,513 | 128,667 | ||||||
Research and development (1) | 60,876 | 19,112 | ||||||
General and administrative (1) | 42,962 | 10,810 | ||||||
Total costs and expenses | 592,412 | 235,042 | ||||||
Income from operations | 11,465 | 25,136 | ||||||
Other income (expense): | ||||||||
Interest expense and loss on settlement of debt | (35,010 | ) | (18,629 | ) | ||||
Other income, net | 9,790 | 1,021 | ||||||
Total other expense | (25,220 | ) | (17,608 | ) | ||||
Income (loss) before income taxes | (13,755 | ) | 7,528 | |||||
Provision for (benefit from) income taxes | (3,180 | ) | 2,864 | |||||
Net income (loss) | $ | (10,575 | ) | $ | 4,664 | |||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Cost of revenue | $ | 109 | $ | 29 | ||||
Sales and marketing | 1,819 | 452 | ||||||
Research and development | 6,465 | 1,527 | ||||||
General and administrative | 21,566 | 1,454 | ||||||
Total stock-based compensation | $ | 29,959 | $ | 3,462 | ||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Cost of revenue | $ | 82,185 | $ | 27,576 | ||||
Sales and marketing | 3,209 | 2,694 | ||||||
Total amortization expense related to acquired intangibles | $ | 85,394 | $ | 30,270 | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | 100 | % | 100 | % | |||||||
Costs and expenses: | |||||||||||
Cost of revenue | 28 | % | 37 | % | |||||||
Sales and marketing | 21 | % | 28 | % | |||||||
Research and development | 15 | % | 20 | % | |||||||
General and administrative | 4 | % | 6 | % | |||||||
Total costs and expenses | 68 | % | 91 | % | |||||||
Income from operations | 32 | % | 9 | % | |||||||
Other income (expense): | |||||||||||
Interest expense and settlement of debt | (7) | % | (10) | % | |||||||
Other income, net | 0 | % | 1 | % | |||||||
Total other expense, net | (7) | % | (9) | % | |||||||
Income (loss) before income taxes | 25 | % | — | % | |||||||
Provision for income taxes | 3 | % | 0 | % | |||||||
Net income (loss) | 22 | % | (1) | % |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Revenue | 100 | % | 100 | % | ||||
Costs and expenses: | ||||||||
Cost of revenue | 37 | % | 29 | % | ||||
Sales and marketing | 44 | % | 49 | % | ||||
Research and development | 10 | % | 7 | % | ||||
General and administrative | 7 | % | 4 | % | ||||
Total costs and expenses | 98 | % | 90 | % | ||||
Income from operations | 2 | % | 10 | % | ||||
Other income (expense): | ||||||||
Interest expense and loss on settlement of debt | (6 | )% | (7 | )% | ||||
Other income, net | 2 | % | 0 | % | ||||
Total other expense | (4 | )% | (7 | )% | ||||
Income (loss) before income taxes | (2 | )% | 3 | % | ||||
Provision for (benefit from) income taxes | (1 | )% | 1 | % | ||||
Net income (loss) | (2 | )% | 2 | % | ||||
Totals of percentages of revenue may not foot due to rounding. |
Three Months Ended March 31, | 2023 to 2024 % change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Software Platform Revenue | $ | 678,370 | $ | 354,758 | 91 | % | ||||||||||||||
In-App Purchases Revenue | 259,196 | 251,328 | 3 | % | ||||||||||||||||
In-App Advertising Revenue | 120,549 | 109,319 | 10 | % | ||||||||||||||||
Total Apps Revenue | 379,745 | 360,647 | 5 | % | ||||||||||||||||
Total Revenue | $ | 1,058,115 | $ | 715,405 | 48 | % |
Three Months Ended March 31, | 2020 to 2021 % change | |||||||||||
2021 | 2020 | |||||||||||
Business Revenue – Apps | $ | 156,963 | $ | 99,749 | 57 | % | ||||||
Business Revenue – Software Platform | 88,419 | 46,512 | 90 | % | ||||||||
Total Business Revenue | 245,382 | 146,261 | 68 | % | ||||||||
Consumer Revenue | 358,495 | 113,917 | 215 | % | ||||||||
Total Revenue | $ | 603,877 | $ | 260,178 | 132 | % | ||||||
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Cost of revenue | $ | 294,148 | $ | 261,960 | 12 | % | ||||||||||||||
Percentage of revenue | 28 | % | 37 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Cost of revenue | $ | 223,061 | $ | 76,453 | 192 | % | ||||||
Percentage of revenue | 37 | % | 29 | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Sales and marketing | $ | 226,687 | $ | 202,976 | 12 | % | ||||||||||||||
Percentage of revenue | 21 | % | 28 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Sales and marketing | $ | 265,513 | $ | 128,667 | 106 | % | ||||||
Percentage of revenue | 44 | % | 49 | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Research and development | $ | 155,323 | $ | 144,851 | 7 | % | ||||||||||||||
Percentage of revenue | 15 | % | 20 | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
General and administrative | $ | 42,398 | $ | 44,571 | (5) | % | ||||||||||||||
Percentage of revenue | 4 | % | 6 | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Interest expense | $ | (74,182) | $ | (74,511) | — | % | ||||||||||||||
Percentage of revenue | (7) | % | (10) | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Other income, net | $ | 2,568 | $ | 10,111 | (75) | % | ||||||||||||||
Percentage of revenue | — | % | 1 | % |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Provision for income taxes | $ | 31,762 | $ | 1,165 | ** | |||||||||||||||
Percentage of revenue | 3 | % | — | % |
** Not meaningful |
Three Months Ended March 31, | 2023 to 2024 % Change | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||
Software Platform Adjusted EBITDA | $ | 492,020 | $ | 218,694 | 125 | % | ||||||||||||||
Apps Adjusted EBITDA | $ | 56,751 | $ | 55,004 | 3 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Research and development | $ | 60,876 | $ | 19,112 | 219 | % | ||||||
Percentage of revenue | 10 | % | 7 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
General and administrative | $ | 42,962 | $ | 10,810 | 297 | % | ||||||
Percentage of revenue | 7 | % | 4 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Interest expense and loss on settlement of debt | $ | (35,010 | ) | $ | (18,629 | ) | 88 | % | ||||
Percentage of revenue | (6 | )% | (7 | )% |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Other income, net | $ | 9,790 | $ | 1,021 | 859 | % | ||||||
Percentage of revenue | 2 | % | 0 | % |
Three Months Ended March 31, | 2020 to 2021 % Change | |||||||||||
2021 | 2020 | |||||||||||
(in thousands, except percentages) | ||||||||||||
Provision for (benefit from) income taxes | $ | (3,180 | ) | $ | 2,864 | (211 | )% | |||||
Percentage of revenue | (1 | )% | 1 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 392,779 | $ | 288,662 | |||||||
Net cash used in investing activities | $ | (31,635) | $ | (12,975) | |||||||
Net cash used in financing activities | $ | (424,612) | $ | (111,415) |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Net cash provided by operating activities | $ | 61,819 | $ | 45,687 | ||||
Net cash used in investing activities | (18,273 | ) | (54,699 | ) | ||||
Net cash provided by financing activities | 400,374 | 33,479 |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1) | ||||||||||
(in thousands) | (in thousands) | (in millions) | ||||||||||||
January 1 - 31 | — | $ | — | — | $ | 2 | ||||||||
February 1 - 29 | — | $ | — | — | $ | 1,252 | ||||||||
March 1 - 31 | 13,466 | $ | 57.60 | 13,466 | $ | 500 | ||||||||
Total | 13,466 | 13,466 |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||
10.1* | ||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||
32.1† | ||||||||||||||||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Stockholders’ Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. | |||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
10.18 | Equity Exchange Agreement between the registrant and Herald Chen, dated March 16, 2021. | S-1/A | 333-253800 | 10.18 | March 22, 2021 | |||||||||||
10.19 | Director Nominations Agreement between the registrant and KKR Denali Holdings L.P., dated March 16, 2021. | S-1/A | 333-253800 | 10.19 | March 22, 2021 | |||||||||||
31.1 | Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||||||
31.2 | Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||||||
32.1† | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Deficit, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. | |||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
APPLOVIN CORPORATION | ||||||||||||
Date: May | By: | /s/ Adam Foroughi | ||||||||||
Chief Executive Officer | ||||||||||||
(Principal Executive Officer) |
Date: May | By: | /s/ | ||||||||||
Chief Financial Officer | ||||||||||||
(Principal Financial Officer) |