Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 11, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Registrant Name | AppLovin Corporation | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001751008 | |
Entity File Number | 001-40325 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3264542 | |
Entity Address, Address Line One | 1100 Page Mill Road | |
Entity Address, City or Town | Palo Alto | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94304 | |
City Area Code | 800 | |
Local Phone Number | 839-9646 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Class A common stock, par value $0.00003 per share | |
Trading Symbol | APP | |
Security Exchange Name | NASDAQ | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 216,751,056 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 147,921,563 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
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 assets | 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 |
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) | ||
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 |
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 |
Common Class A [Member] | ||
Stockholders' deficit: | ||
Common stock | 6 | 6 |
Total stockholders' deficit | 6 | 6 |
Common Class F [Member] | ||
Stockholders' deficit: | ||
Common stock | 1 | 1 |
Total stockholders' deficit | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Convertible Preferred Stock [Member] | ||
Preferred stock shares authorized | 109,090,908 | 109,090,908 |
Preferred stock shares issued | 109,090,908 | 109,090,908 |
Preferred stock shares outstanding | 109,090,908 | 109,090,908 |
Common Class A [Member] | ||
Common stock par or stated value per share | $ 0.00003 | $ 0.00003 |
Common stock shares authorized | 386,400,000 | 386,400,000 |
Common stock shares issued | 184,817,898 | 183,800,251 |
Common stock shares outstanding | 184,817,898 | 183,800,251 |
Common Class F [Member] | ||
Common stock par or stated value per share | $ 0.00003 | $ 0.00003 |
Common stock shares authorized | 43,200,000 | 43,200,000 |
Common stock shares issued | 42,564,150 | 42,564,150 |
Common stock shares outstanding | 42,564,150 | 42,564,150 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
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 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 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 nil and $0.5 million, respectively | 0 | (1,867) |
Total other comprehensive loss | (721) | (1,903) |
Add: Net loss attributable to the non-controlling interest | 54 | |
Total comprehensive income (loss) attributable to common stockholders | $ (11,242) | $ 2,761 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Interest rate swap gain loss tax component | $ 0 | $ 0.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Deficit - USD ($) $ in Thousands | Total | Redeemable Non Controlling Equity [Member] | Convertible Preferred Stock [Member] | Common Class A [Member] | Common Class F [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2019 | $ (256,567) | $ 399,589 | $ 6 | $ 1 | $ 235,190 | $ (4,140) | $ (887,213) | |
Beginning balance (Shares) at Dec. 31, 2019 | 109,090,908 | 177,593,772 | 42,564,150 | |||||
Exercises and vesting of early exercised Class A common stock options | 145 | 145 | ||||||
Exercises and vesting of early exercised Class A common stock options (Shares) | 442,503 | |||||||
Repurchase of unvested Class A common stock related to early exercised stock options (Shares) | (425,001) | |||||||
Repurchase of Class A common stock | (760) | (760) | ||||||
Repurchase of Class A common stock (Shares) | (114,000) | |||||||
Stock-based compensation | 3,462 | 3,462 | ||||||
Total other comprehensive loss | (1,903) | (1,903) | ||||||
Net loss | 4,664 | 4,664 | ||||||
Net loss - Temporary Equity | 0 | |||||||
Ending balance at Mar. 31, 2020 | (250,959) | $ 399,589 | $ 6 | $ 1 | 238,037 | (6,043) | (882,549) | |
Ending balance (Shares) at Mar. 31, 2020 | 109,090,908 | 177,497,274 | 42,564,150 | |||||
Beginning balance, Temporary Equity at Dec. 31, 2020 | 309 | $ 309 | ||||||
Beginning balance at Dec. 31, 2020 | (158,545) | $ 399,589 | $ 6 | $ 1 | 453,655 | 604 | (1,012,400) | |
Beginning balance (Shares) at Dec. 31, 2020 | 109,090,908 | 183,800,251 | 42,564,150 | |||||
Exercises and vesting of early exercised Class A common stock options | 10,143 | 10,143 | ||||||
Exercises and vesting of early exercised Class A common stock options (Shares) | 1,232,156 | |||||||
Repurchase of Class A common stock (Shares) | (214,509) | |||||||
Stock-based compensation | 29,667 | 29,667 | ||||||
Total other comprehensive loss | (721) | (721) | ||||||
Net loss | (10,521) | (10,521) | ||||||
Net loss - Temporary Equity | (54) | (54) | ||||||
Ending balance, Temporary Equity at Mar. 31, 2021 | 255 | $ 255 | ||||||
Ending balance at Mar. 31, 2021 | $ (129,977) | $ 399,589 | $ 6 | $ 1 | $ 493,465 | $ (117) | $ (1,022,921) | |
Ending balance (Shares) at Mar. 31, 2021 | 109,090,908 | 184,817,898 | 42,564,150 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 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 asset | 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 |
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 |
Description of Business and Pri
Description of Business and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Principles of Consolidation | 1. Description of Business and Principles of Consolidation Description of Business AppLovin Corporation (the “Company” or “AppLovin”) was incorporated apps—free-to-play The Company’s operations are headquartered in Palo Alto, California, and has several operating locations in the U.S. as well as various international office locations in North America, Asia and Europe. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s final prospectus dated April 14, 2021 and filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933 (the “Prospectus”). The condensed consolidated balance sheet data as of December 31, 2020 was derived from the audited consolidated financial statements at that date but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of the Company’s financial position, results of operations, cash flows and stockholders’ equity for the interim periods presented. The results of operations for the three months ended March 31, 2021 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other period. Principles of Consolidation The unaudited condensed consolidated financial statements reflect the accounts of AppLovin Corporation and its subsidiaries in which the Company has a controlling financial interest. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation, the Company consolidates any variable interest entity (“VIE”) of which the Company is the primary beneficiary. The Company engages in business relationships with certain entities in the ordinary course of business to develop game Apps. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company does not consolidate a VIE in which it has a majority ownership interest when the Company is not considered the primary beneficiary. The Company evaluates its relationships with all VIEs on an ongoing basis. All intercompany transactions and balances have been eliminated upon consolidation. Initial Public Offering and Capital Structure Change The Company’s registration statement on Form S-1 reimbursements. KKR Capital Markets LLC was is million of the net proceeds from the IPO to repay the entire outstanding amount under the revolving credit facility (See Note 8). KKR Capital Markets LLC is a lender under the revolving credit facility and an affiliate of KKR Denali, a principal stockholder of the Company. Following the effectiveness of the IPO Registration Statement, the Company filed its Amended and Restated Certificate of Incorporation, which became effective immediately prior to the closing of the IPO (the “IPO Certificate”). The IPO Certificate authorizes a total of 1,500,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, 150,000,000 shares of Class C common stock, and 100,000,000 shares of preferred stock. Upon the filing and effectiveness of the IPO Certificate, a ll and 150, 7 2 Company’s co-founder, CEO, Following the closing of the IPO, the Company had two classes of outstanding common stock: Class A common stock and Class B common stock. No shares of the Company’s Class C common stock or preferred stock were issued and outstanding. The rights of the holders of all classes of stock pursuant to the IPO Certificate are as follows: Common Stock The rights of the holders of Class A common stock, Class B common stock, and Class C common stock (referred to together as the “common stock”) are identical, except with respect to voting and conversion. Voting Rights Holders of the Class A common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders, holders of the Class B common stock are entitled to 20 votes for each share held on all matters submitted to a vote of stockholders, and holders of the Class C common stock are not entitled to vote on any matter that is submitted to a vote of stockholders, except as otherwise required by law. The holders of the Class A common stock and Class B common stock will vote together as a single class, unless otherwise required by law. Under the IPO Certificate, approval of the holders of at least a majority of the outstanding shares of the Class B common stock voting as a separate class will be required to increase the number of authorized shares of the Class B common stock. In addition, Delaware law could require either holders of the Class A common stock, the Class B common stock, or the Class C common stock to vote separately as a single class in the following circumstances: • if the Company were to seek to amend the IPO Certificate to increase or decrease the par value of a class of stock, then that class would be required to vote separately to approve the proposed amendment; and • if the Company were to seek to amend the IPO Certificate in a manner that alters or changes the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. Until the date on which the final conversion of all outstanding shares of Class B common stock pursuant to the terms of the IPO Certificate occurs, approval of at least two-thirds Upon the closing of the IPO, the Class B Stockholders held all of the issued and outstanding shares of the Company’s Class B common stock. The Class B Stockholders have Dividend Rights Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of the Company’s common stock will be entitled to receive dividends out of funds legally available if the Company’s board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that the Company’s board of directors may determine. No Preemptive or Similar Rights The Company’s common stock will not be entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions. Right to Receive Liquidation Distributions If the Company becomes subject to a liquidation, dissolution or winding-up, Conversion of Class B Common Stock Each share of Class B common stock will be convertible at any time at the option of the holder into one share of Class A common stock. Following the closing of the IPO, shares of Class B common stock will automatically convert into shares of Class A common stock upon sale or transfer except for certain transfers described in the IPO Certificate, including transfers for estate planning, transfers among KKR Denali and its affiliates, or other transfers among the Class B Stockholders. Withdrawal from the Voting Agreement constitutes a transfer. Each share of Class B common stock will convert automatically into one share of Class A common stock upon the date fixed by the Company’s board of directors that is no less than 61 days and no more than 180 days following the date on which (i) the Voting Agreement is terminated or (ii) Adam Foroughi is no longer involved with the Company as a member of the board of directors or as an executive officer. Conversion of Class C Common Stock After the conversion or exchange of all outstanding shares of the Company’s Class B common stock into shares of Class A common stock, all outstanding shares of Class C common stock will convert automatically into Class A common stock, on a share-for-share Preferred Stock The Company’s IPO Certificate also authorizes the issuance of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue from Contracts with Customers The Company generates Business and Consumer revenue. Business Revenue includes fees paid by mobile app advertisers that use the Company’s software platform (“Software Platform”), and revenue generated from the sale of digital advertising inventory of the Company’s apps (“Apps”). Consumer Revenue consists of mobile in-app Business Revenue Our Software Platform provides the technology to match advertisers and third-party owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The pricing and terms for all mobile advertising arrangements are governed by the Company’s terms and conditions and generally stipulate payment terms of 30 days subsequent to the end of the month. The contract is fully cancellable at any time. For Business Revenue generated through placement of advertisements on mobile applications owned by Publishers, the Company’s performance obligation is to provide an advertiser with access to our Software Platform which facilitates the advertiser’s purchase of advertising inventory from Publishers. The Company does not control the advertising inventory prior to its transfer to the advertiser, the Company’s customer, because the Company does not have the substantive ability to direct the use of, nor obtain substantially all of the remaining benefits from the advertising inventory. The Company is not primarily responsible for fulfillment and does not have any inventory risk. The Company is an agent as it relates to the sale of third-party advertising inventory and presents revenue on a net basis. The transaction price is the product of either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers. Advertisers purchase Apps advertising inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of advertising inventory through Ad Networks is recognized net of the amounts retained by Ad Networks as the Company is unable to determine the gross amount paid by the advertisers to Ad Networks. The Company recognizes mobile advertising revenue when the agreed upon action is completed or when the ad is displayed to users, depending on the agreed upon pricing mechanism with an advertiser or Ad Network. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Consumer Revenue IAPs include fees collected from users for the purchase of virtual goods to enhance their gameplay experience. The identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items over the estimated period of time the virtual items are available to the user or until the virtual item is consumed. The Company categorizes its virtual goods as either consumable or durable. Consumable virtual goods represent goods that can be consumed by a specific player action in gameplay; accordingly, the Company recognizes revenue from the sale of consumable virtual goods as the goods are consumed and the Company’s performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the user over an extended period of time; accordingly, the Company recognizes revenue from the sale of durable virtual goods ratably over the period of time the goods are available to the user and the Company’s performance obligation is satisfied, which is generally the estimated average user life (“EAUL”). Payment is required at the time of purchase and the purchase price is a fixed amount. Users make IAPs through the Company’s distribution partners. The transaction price is equal to the gross amount charged to users because the Company is the principal in the transaction. IAPs fees are non-refundable. The EAUL represents the Company’s best estimate of the expected life of paying users for the applicable game. The EAUL begins when a user makes a first purchase of durable virtual goods and ends when a user is determined to be inactive. The Company determines the EAUL on a game-by-game The Company presents taxes collected from customers and remitted to governmental authorities on a net basis. Asset Acquisitions and Business Combinations The Company performs an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test suggests that the set of assets and activities is a business, the Company then performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For transactions accounted for as business combinations, the Company allocates the fair value of acquisition consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. Acquisition consideration includes the fair value of any promised contingent consideration. The excess of the fair value of acquisition consideration over the fair value of acquired identifiable assets and liabilities is recorded as goodwill. Contingent consideration is remeasured to its fair value each reporting period with changes in the fair value of contingent consideration recorded in general and administrative expenses. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are expensed as incurred. For transactions accounted for as asset acquisitions, the cost, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. The Company generally includes contingent consideration in the cost of the assets acquired only when the uncertainty is resolved. The Company recognizes contingent consideration adjustments to the cost of the acquired assets prospectively using the straight-line method over the remaining useful life of the assets. No goodwill is recognized in asset acquisitions. Services and Development Agreements The Company enters into strategic agreements with mobile gaming studios (“Partner Studios”). The Company has historically allowed these Partner Studios to continue their operations with a significant degree of autonomy. In some cases, the Company bought Apps from Partner Studios and entered into service and development agreements whereby Partner Studios provide support in improving existing Apps and developing new Apps. The substantial majority of payments associated with service agreements for existing Apps are expensed to research and development when the services are rendered as the payments primarily relate to developing enhancements for the Apps. Payments for new Apps associated with development agreements are generally made in connection with the development of a particular App, and therefore, the Company is subject to development risk prior to the release of the App. Accordingly, payments that are due prior to completion of an App are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of an App are generally capitalized and expensed as cost of revenue. See Note 6, “Acquisitions” for additional information. Recent Accounting Pronouncements (Issued and Not Yet Adopted) In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Recent Accounting Pronouncements (Issued and Adopted) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue Disaggregation of Revenue The following table present s 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 Revenue disaggregated by geography, based on user location, consists of the following (in thousands): 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 Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of the satisfaction of performance obligations. During the three months ended March 31, 2021 and 2020, the Company recognized $57.7 million and $8.1 million of revenue that was included in the deferred revenue as of December 31, 2020 and 2019, respectively. Unsatisfied Performance Obligations All of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following table sets forth the Company’s financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis as of the dates indicated (in thousands): 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 Convertible Security In November 2020, the Company issued a convertible security as part of the consideration exchanged for certain mobile game Apps acquired from an independent foreign-based mobile game developer. The Company elected to account for the convertible security using the fair value option. Under the fair value option, the financial liability is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. The fair value of the convertible security was determined using the probability-weighted expected return method (“PWERM”). This valuation methodology is based on unobservable estimates and judgements, and therefore is classified as a Level 3 fair value measurement. The significant unobservable input used in the fair value measurement of the convertible security is the expected timing of occurrence of an IPO. Fair value measurements are highly sensitive to changes in this input and significant changes in this input would result in a significantly higher or lower fair value. For the three months ended March 31, 2021, the Company recorded a total loss of $0.7 million in other income, net in the Company’s condensed consolidated statements of operations due to the change in fair value of the convertible security. The convertible security is included in deferred acquisition costs, current, in the Company’s condensed consolidated balance sheets. Embedded Derivative Loans issued under Company’s credit agreement with the lenders party thereto and Bank of America, N.A., as administrative agent for the lenders (the “Credit Agreement”) contain certain interest adjustment features which were determined to be an embedded derivative requiring bifurcation and separate accounting as the features are not clearly and closely related to the host debt instrument. The embedded derivative was initially valued and remeasured using the “with-and-without” method. The “with-and-without” methodology involves valuing the whole instrument with and without the embedded derivative using a discounted cash flow approach. The difference of the estimated fair value between the instrument with the embedded derivative and the instrument without the embedded derivative is the fair value of the embedded derivative. This valuation methodology is based on unobservable estimates and judgements, and therefore is classified as a Level 3 fair value measurement. The significant unobservable input used in the fair value measurement of the embedded derivative is the expected timing of occurrence of an IPO. Fair value measurements are highly sensitive to changes in these inputs and significant changes in these inputs would result in a significantly higher or lower fair value. The initial fair value of the embedded derivative was determined to be nominal for term loans issued prior to 2021 and 5.6 million for the term loans issued in February 2021, which was accounted for as a reduction to the carrying amount of the term loans. For the three months ended March 31, 2021 and 2020, the Company recorded a total gain of 6.6 million and nil, respectively, in other income, net in the Company’s condensed consolidated statements of operations due to the change in fair value of the embedded derivative. Marketable Equity Securities The Company’s marketable equity securities consist entirely of its investment in the ordinary shares of Huuuge, Inc., a foreign based independent mobile game developer, which completed its initial public offering and became listed on the Warsaw Stock Exchange in the first quarter of 2021. The Company had carried the investment at cost in other assets on the Company’s consolidated balance sheets in prior fiscal years. The cost basis of the investment was immaterial. The fair value of the marketable equity securities was based on the quoted market price of Huuuge, Inc.’s ordinary shares as of March 31, 2021, and therefore was classified as a Level 1 fair value measurement. For the three months ended March 31, 2021, the Company recorded a total unrealized gain of $5.4 million in other income, net in the Company’s condensed consolidated statements of operations as a result of remeasuring the investment to fair value. The following table presents a reconciliation of the Company’s financial asset and liability measured at fair value as of March 31, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands): 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 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 5. Contingencies Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. Letters of Credit As of March 31, 2021 and December 31, 2020 the Company had outstanding letters of credit in the aggregate amount of $11.1 million, which were issued as security for certain leased office facilities under the Credit Agreement. These letters of credit have never been drawn upon. Legal Proceedings The Company is involved from time to time in litigation, claims, and proceedings. The outcomes of the Company’s legal proceedings are inherently unpredictable and subject to significant uncertainty. The Company records a liability when it is probable that a loss has been incurred and the amount can be reasonably estimated. If it is determined that a loss is reasonably possible and the loss or range of loss can be estimated, the reasonably possible loss is disclosed. The Company evaluates developments in legal matters that could affect the amount of liability that has been previously accrued, and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine the likelihood of matters and the estimated amount of losses related to such matters. To date, losses in connection with legal proceedings have not been material. The Company expenses legal fees in the period in which they are incurred. Indemnifications The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including certain customers, business partners, investors, contractors and the Company’s officers, directors and certain employees. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s condensed consolidated statements of operations in connection with the indemnification provisions have not been material. As of March 31, 2021, the Company did not have any material indemnification claims that were probable or reasonably possible. Non-income The Company may be subject to audit by various tax authorities with regard to non-income non-income non-income |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions 2021 Acquisitions In February 2021, the Company signed a share purchase agreement with Adjust GmbH, a leading mobile app attribution, measurement and analytics company in Germany, which agreement, as amended and restated and further amended, provides for the Company to acquire all the outstanding shares of Adjust GmbH for (i) $ 598.0 352.0 trading days commencing with and following the closing of the IPO (the “Conversion Price”); and (iii) the assumption of up to 40.0 million in the aggregate of debt, accrued interest, and fees of Adjust, in each case upon the terms and subject to the conditions of the share purchase agreement. The transaction closed on April 20, 2021. The 20-day trading period expired on May 12. As of the date of issuance of these condensed consolidated financial statements, the Company has not received any notice designating the 10-day period for determining the Conversion Price. Due to the timing of this transaction close, as of the date of issuance of these condensed consolidated financial statements, the Company is in the process of finalizing the valuation and related accounting impact. During the three months ended March 31, 2021, the Company recognized earn-out 27.2 million related to the Zenlife acquisition closed in 2020. These earn-out costs increased the book value of the acquired mobile game Apps, and are amortized over the remaining useful life of the originally acquired game Apps. During the three months ended March 31, 2021, the Company also acquired certain mobile game Apps for an aggregated consideration of $8.6 million . In January 2021 the Company paid $60.0 million to Recoded, an independent foreign-based mobile game developer, in relation to a new game App acquired in 2020. In February 2021, the Company paid an additional $90.0 million to Recoded related to deferred cash consideration on the acquisition closed in 2019. 2020 Acquisitions Geewa million indemnity holdback that was paid in January 2021. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): 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 The income approach was used to value the developed Apps and tradename. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and assumed liabilities acquired and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is not deductible for tax purposes. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the condensed consolidated statements of operations. In March 2020, the Company completed a transaction to acquire a certain mobile game App from an independent foreign-based mobile game developer in exchange for an upfront cash consideration of $30.0 million and earn-out payments. The transaction was accounted for as an asset acquisition with the entire upfront cash consideration allocated to the acquired mobile game App. Additionally, the Company entered into a service and development agreement with the independent mobile game developer to support the initially acquired game App as well as to develop new game Apps. The earn-out payments are based on a predetermined percentage of revenue net of certain direct costs generated by the initially acquired game App, or additional game Apps developed under the service and development agreement, over the term of the agreement, which is initially two years, but which may renew for an additional two-year term. During the three months ended March 31, 2021 and 2020, the earn-outs incurred in connection with this acquisition were immaterial. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets, Net | 7. Goodwill and Acquired Intangible Assets, Net The following table presents goodwill activity (in thousands): December 31, 2020 $ 249,773 Foreign currency translation (388 ) March 31, 2021 $ 249,385 Acquired intangible assets, net consisted of the following (in thousands): 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 As of March 31, 2021 and December 31, 2020, short-lived mobile Apps were included in prepaid expenses and other current assets. The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands): 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 |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 8. Credit Agreement On August 15, 2018, the Company entered into a Credit Agreement which provided for senior secured term loans in an aggregate principal amount of $820.0 million (the “Closing Term Loans”) and a revolving credit facility of $50.0 million. On April 23, 2019, the Credit Agreement was amended to increase the senior secured term loan facility by $ million, on terms identical to those applicable to the Closing Term Loans (together with the Closing Term Loans, the “Initial Term Loans”). On April 27, 2020, the Credit Agreement was further amended to modify certain negative covenants. On May 6, 2020, the Credit Agreement was further amended (the “Third Amendment”) to increase the senior secured term loan facility by an additional $ million (the “Third Amendment Term Loans”). On October 27, 2020, the Credit Agreement was further amended to increase the aggregate principal amount of the revolving credit facility by an additional $540.0 million. On November 30, 2020, the Company borrowed $150.0 million under the revolving credit facility. On February 12, 2021, the Company amended the Credit Agreement to 1) increase the senior secured term loan facility by an aggregate principal amount of $ million (the “Fifth Amendment Term Loans”, and together with the Initial Term Loans, the “Term Loans”), on terms identical to those applicable to the existing Initial Term Loans, the proceeds of which was partially used to repay in full the outstanding principal and accrued and unpaid interest of the Third Amendment Term Loans, totaling $ million, in accordance with the pre-existing early redemption option in the Credit Agreement, and 2) increase the aggregate principal amount of the revolving credit facility by an additional $ million, on terms identical to those applicable to the existing revolving credit facility. According to the amended Credit Agreement, the Company is required to make equal quarterly repayments of $ million with respect to the Term Loans. In connection with this amendment, the Company paid $ million in fees to KKR Capital Markets LLC, who is affiliated with KKR Denali, one of the Company’s principal stockholders. The Company evaluated the accounting for the Fifth Amendment Term Loans on a creditor-by-creditor n %. For new creditors, the transaction was accounted for as an issuance of new debt. As a result, $ million of the $ million third-party issuance costs related to the modified debt was recorded in other income, net on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021, with the remaining million related to the new debt recorded as a reduction to the carrying amount of the Term Loans. In addition, the Company recorded $ million for an embedded derivative related to the contingent interest adjustment feature of the Fifth Amendment Term Loans, which was bifurcated and accounted for separately as the feature is not clearly and closely related to the host instrument. For details regarding the fair value measurement of the embedded derivative, see Note 4. The debt discount related to the deferred third-party issuance costs, the bifurcated embedded derivative and the unamortized debt discount of the Initial Term Loans that were modified as part of the amendment is being amortized to interest expense using the effective interest method over the remaining contractual term of the Term Loans. The Company accounted for the early repayment of the Third Amendment Term loans as a debt extinguishment. As a result, the Company recognized a loss on debt extinguishment of $ million during the three months ended March 31, 2021, which was recorded in interest expense and loss on extinguishment of debt on the Company’s condensed consolidated statements of operations. The loss on debt extinguishment consisted primarily of the unamortized original issue discount and debt issuance cost. On March 31, 2021, the Company drew down an additional $250.0 million from the Company’s $600.0 million revolving credit facility. A lender under the revolving credit facility is an affiliate of KKR Denali, a principal stockholder of the Company. Following such draw down , million outstanding under the revolving credit facility, which was repaid in full with the net proceeds from the IPO in April 2021. As of March 31, 2021, the Company was in compliance with all of the covenants. After the effectiveness of the IPO Registration Statement, the applicable margins for both the Term Loans and the Revolving Credit Loans were reduced by 0.25% on April 16, 2021 in accordance with the pre-existing |
Cash Flow Hedges
Cash Flow Hedges | 3 Months Ended |
Mar. 31, 2021 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Cash Flow Hedges | 9. Cash Flow Hedges The Company manages exposure to market risk associated with fluctuating interest rates with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for trading or speculative purposes. On November 14, 2018, the Company entered into an interest rate swap agreement as part of its interest rate risk management strategy in connection with the term loan. The notional amount for the swap was $410.0 million. The swap was a receive-variable (one-month pay-fixed The Company applied the hedge accounting provisions of the critical terms match hedge, and formally documented at inception all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking the various hedges. The critical terms of the swap and hedged item coincided (notional amount, interest rate reset dates, interest rate payment dates, and underlying index), the hedge was expected to offset changes in expected cash flows due to fluctuations in one-month Unrealized changes in the fair value of derivatives accounted for as a critical term match hedge were reported in other comprehensive income (loss) and subsequently reclassified to earnings in the same period or periods during which the hedged forecasted transaction affected earnings. The interest rate swap contract expired on December 31, 2020 and the settlement value of the interest rate swap liability was reclassified to interest expense and loss on settlement of debt For the three months ended March 31, 2020, the Company recognized million of realized loss related to hedged transaction, which were recorded in interest expense and loss on settlement of debt in the Company’s condensed consolidated statements of operations. As of March 31, 2020, the settlement value of the interest rate swap liability before tax effect was million and was included in accrued liabilities and reported in other comprehensive income net of tax effect. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | 10. Stock-based Compensation In March 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Equity Incentive Plan, the 2021 Partner Studio Incentive Plan and the Employee Stock Purchase Plan, all of which became effective on the business day immediately prior to the effective date of the IPO Registration Statement: 2021 Equity Incentive Plan The 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and any parent and subsidiary companies’ employees, and for the grant of nonstatutory stock options, restricted stock, 2021 Partner Studio Incentive Plan The 2021 Partner Studio Incentive Plan (the “2021 Partner Plan”) provides for the grant of nonstatutory stock options, restricted stock, restricted stock units (RSUs), stock appreciation rights (SARs), performance units, and performance shares to individuals or entities engaged by the Company or a parent or subsidiary of the Company to render bona fide services to the party engaging such individual or entity. A total of 390,000 shares of the Company’s Class A common stock are reserved for issuance pursuant to the 2021 Partner Plan. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “ESPP”) permits participants to purchase shares of the Company’s Class A common stock through contributions (in the form of payroll deductions or otherwise to the extent permitted by the administrator) of up to 15% of their eligible compensation. Amounts contributed and accumulated by the participant will be used to purchase shares of the Company’ Class A common stock at the end of each 6-month value of the Company’s Class A common stock on the first day of an offering period or on the exercise date. A participant may purchase a maximum of 590 shares of the Company’s Class A common stock during a purchase period. The ESPP provides for consecutive, overlapping 24-month A total of 7,800,000 shares of the Company’s Class A common stock are available for sale under the ESPP. The number of shares of the Company’s Class A common stock that will be available for sale under the ESPP also includes an annual increase on the first day of each fiscal year beginning with fiscal year 2022, equal to the least of: (a) 7,800,000 shares, (b) one percent (1%) of the outstanding shares of all classes of the Company’s common stock as of the last day of the immediately preceding fiscal year, or (c) such other amount as the Company’s board of directors may determine. The initial offering period will be from April 15, 2021 through November 19, 2023. As of March 31, 2021, the Company had not yet launched the ESPP and was under no obligation to do so. 2011 Equity Incentive Plan The Company’s 2011 Equity Incentive Plan (the “2011 Plan”) provides for the granting of stock options to employees, consultants, and advisors of the Company. Options granted under the 2011 Plan may be either incentive stock options or nonqualified stock options. Incentive stock options may be granted only to Company employees, including directors who are also employees. Nonqualified stock options may be granted to Company employees, consultants, and advisors. The 2011 Plan also provides for grants of restricted stock awards (the “RSAs”) and restricted stock units. As of March 31, 2021, the Company reserved 125,316,000 shares of Class A common stock for issuance under the 2011 Plan. Shares remaining available for issuance under the 2011 Plan were 3,754,596 as of March 31, 2021. Options under the 2011 Plan may be granted for periods of up to 10 years and generally vest over four years. As noted above, immediately prior to the effectiveness of the 2021 Plan, the 2011 Plan was terminated, and no further awards will be granted thereunder. All outstanding awards will continue to be governed by their existing terms. The Company recognized stock-based compensation expense for the periods indicated as follows (in thousands): 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 For the three months ended March 31, 2021 , In January 2021, a new director was elected to serve on the Company’s board of directors and received options to purchase a total of 206,000 shares of the Company’s common stock under the 2011 Plan. With respect to 21,000 shares, 1/12th of the shares will vest, subject to such director’s continued role as a service provider to the Company, on April 21, 2021, and thereafter, 1/12th of the shares vesting every three months; provided that 100% of any unvested shares covered by the option will vest immediately prior to the closing of an Acquisition or Other Combination (each as defined in the 2011 Plan). The options to purchase 185,000 shares were fully vested on the date of grant and such options were exercised in full in January 2021. Early Exercise of Stock Options paid-in-capital th one-year 36-months. During 2020 and 2019, the Company provided financing to certain employees in the form of promissory notes to early exercise stock options. These promissory notes are partially collateralized by shares and in-substance are nonrecourse. For accounting purposes, exercised options via nonrecourse promissory notes are not substantive and are continued to be treated as options. In February 2021, promissory notes issued to executive officers in the amount of $ million were settled through either share repurchase, in the amount of $ million, or cash payment, in the amount of $ million. In connection with the repurchase of shares, the Company accelerated vesting of shares of Class A common stock for one of the Company’s officers. The acceleration of vesting was accounted as an option modification with an immaterial impact to the stock-based compensation expense. As of March 31, 2021 and 202 0 , the Company had and 5,709,999 shares of Class A common stock options, respectively, that were exercised via nonrecourse promissory notes, of which and 4,935,000 shares, were unvested and subject to repurchase, respectively. The principal balances of nonrecourse promissory notes outstanding amounted to $ million and $21.2 million as of March 31, 2021 and 2020, respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 11. Net Income (Loss) Per Share Basic and diluted net income (loss) per share attributable to common stockholders is computed in conformity with the two-class method required for participating securities. The Company considers its convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested stock options and unvested restricted stock awards to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested common stock options and unvested restricted stock awards as the holders of these instruments do not have a contractual obligation to share in the Company’s losses. Net income is attributed to common stockholders and participating securities based on their participation rights. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options. The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data): 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 — — 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 — — 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 The following table presents the forms of antidilutive potential common shares: 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 — 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 The table above does not include the convertible security issued in 2020. This security is convertible into the Company’s common stock starting 61 days following the effective date of an initial public offering of the Company. The convertible security may be converted, at the option of the holder, into a number of shares of the Company’s Class A Common Stock equal to $40.0 million divided by a conversion price equal to (i) the preceding 20-day |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company is subject to income taxes in the U.S. and in foreign jurisdictions. The Company bases its interim tax accruals on an estimated annual effective tax rate applied to year-to-date year-to-date On March 11, 2021, the American Rescue Plan Act (“ARPA”) was enacted. The ARPA contains numerous income tax provisions, such as expanding the definition of covered employees. The ARPA has no impact on the income tax provision (benefit) for the three months ended March 31, 2021. During the three months ended March 31, 2021, there were no material changes to the Company’s unrecognized tax benefits, and the Company does not expect material changes in its unrecognized tax benefits within the next twelve months. Three Months Ended March 31 (In thousands) 2021 2020 Provision for (benefit from) income taxes $ (3,180 ) $ 2,864 The change from $2.9 million of tax provision during the three months ended March 31, 2020, to $3.2 million of tax benefit during the three months ended in March 31, 2021 was primarily due to a net loss before taxes compared to a net income before taxes in the respective periods, and an establishment of deferred tax liability related to restructuring during the three months ended March 31, 2020. |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party | 13. Related Party On February 12, 2021, the Company entered into certain amendment to the Credit Agreement. See N ote 8. In connection with this amendment, the Company paid $ million in fees to KKR Capital Markets LLC, who is affiliated with KKR Denali, one of the Company’s principal stockholders. On March 31, 2021, the Company drew down an additional $ million from the Company’s $ million revolving credit facility. A lender under the revolving credit facility is an affiliate of KKR Denali, a principal stockholder of the Company. See Note 8. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 4 In April 2021, the Company completed two separate transactions to acquire certain mobile game Apps from two foreign based independent mobile game developers in exchange for an aggregate upfront cash consideratio n million and potential future earn-out payments. Concurrent with the closings of these transactions, the Company entered into a development services agreement with each of the independent mobile game developers to support the acquired mobile game Apps, as well as to develop new game Apps during the four-year term of the agreement. With respect to the first transaction, the potential future earn-out payments are contingent on the revenue generated by the acquired game Apps exceeding a certain revenue threshold, which will be measured and payable (if applicable) each year for four years from the date of the transaction. With respect to the second transaction, the potential future earn-out payments will be determined in a manner similar to the first transaction, in addition to a potential one-time earn-out payment of $50.0 million contingent on the achievement of a certain monthly revenue milestone within the four years following the date of the transaction. Due to the timing of these transactions, as of the date of issuance of these condensed consolidated financial statements, the Company is in the process of finalizing the valuation and related accounting for these transactions. In May 2021, the Company granted 6,038,514 RSUs to certain employees under the 2021 Plan at the grant date fair value of $58.55 per RSU. The RSUs generally vest either over four In May 2021, the Company amended a certain agreement with a cloud service provider to increase the aggregate spend commitment from $130.0 million to $300.0 million through May 2026. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company generates Business and Consumer revenue. Business Revenue includes fees paid by mobile app advertisers that use the Company’s software platform (“Software Platform”), and revenue generated from the sale of digital advertising inventory of the Company’s apps (“Apps”). Consumer Revenue consists of mobile in-app Business Revenue Our Software Platform provides the technology to match advertisers and third-party owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The pricing and terms for all mobile advertising arrangements are governed by the Company’s terms and conditions and generally stipulate payment terms of 30 days subsequent to the end of the month. The contract is fully cancellable at any time. For Business Revenue generated through placement of advertisements on mobile applications owned by Publishers, the Company’s performance obligation is to provide an advertiser with access to our Software Platform which facilitates the advertiser’s purchase of advertising inventory from Publishers. The Company does not control the advertising inventory prior to its transfer to the advertiser, the Company’s customer, because the Company does not have the substantive ability to direct the use of, nor obtain substantially all of the remaining benefits from the advertising inventory. The Company is not primarily responsible for fulfillment and does not have any inventory risk. The Company is an agent as it relates to the sale of third-party advertising inventory and presents revenue on a net basis. The transaction price is the product of either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers. Advertisers purchase Apps advertising inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of advertising inventory through Ad Networks is recognized net of the amounts retained by Ad Networks as the Company is unable to determine the gross amount paid by the advertisers to Ad Networks. The Company recognizes mobile advertising revenue when the agreed upon action is completed or when the ad is displayed to users, depending on the agreed upon pricing mechanism with an advertiser or Ad Network. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Consumer Revenue IAPs include fees collected from users for the purchase of virtual goods to enhance their gameplay experience. The identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items over the estimated period of time the virtual items are available to the user or until the virtual item is consumed. The Company categorizes its virtual goods as either consumable or durable. Consumable virtual goods represent goods that can be consumed by a specific player action in gameplay; accordingly, the Company recognizes revenue from the sale of consumable virtual goods as the goods are consumed and the Company’s performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the user over an extended period of time; accordingly, the Company recognizes revenue from the sale of durable virtual goods ratably over the period of time the goods are available to the user and the Company’s performance obligation is satisfied, which is generally the estimated average user life (“EAUL”). Payment is required at the time of purchase and the purchase price is a fixed amount. Users make IAPs through the Company’s distribution partners. The transaction price is equal to the gross amount charged to users because the Company is the principal in the transaction. IAPs fees are non-refundable. The EAUL represents the Company’s best estimate of the expected life of paying users for the applicable game. The EAUL begins when a user makes a first purchase of durable virtual goods and ends when a user is determined to be inactive. The Company determines the EAUL on a game-by-game The Company presents taxes collected from customers and remitted to governmental authorities on a net basis. |
Asset Acquisitions and Business Combinations | Asset Acquisitions and Business Combinations The Company performs an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test suggests that the set of assets and activities is a business, the Company then performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination. For transactions accounted for as business combinations, the Company allocates the fair value of acquisition consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. Acquisition consideration includes the fair value of any promised contingent consideration. The excess of the fair value of acquisition consideration over the fair value of acquired identifiable assets and liabilities is recorded as goodwill. Contingent consideration is remeasured to its fair value each reporting period with changes in the fair value of contingent consideration recorded in general and administrative expenses. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are expensed as incurred. For transactions accounted for as asset acquisitions, the cost, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. The Company generally includes contingent consideration in the cost of the assets acquired only when the uncertainty is resolved. The Company recognizes contingent consideration adjustments to the cost of the acquired assets prospectively using the straight-line method over the remaining useful life of the assets. No goodwill is recognized in asset acquisitions. |
Services and Development Agreements | Services and Development Agreements The Company enters into strategic agreements with mobile gaming studios (“Partner Studios”). The Company has historically allowed these Partner Studios to continue their operations with a significant degree of autonomy. In some cases, the Company bought Apps from Partner Studios and entered into service and development agreements whereby Partner Studios provide support in improving existing Apps and developing new Apps. The substantial majority of payments associated with service agreements for existing Apps are expensed to research and development when the services are rendered as the payments primarily relate to developing enhancements for the Apps. Payments for new Apps associated with development agreements are generally made in connection with the development of a particular App, and therefore, the Company is subject to development risk prior to the release of the App. Accordingly, payments that are due prior to completion of an App are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of an App are generally capitalized and expensed as cost of revenue. See Note 6, “Acquisitions” for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (Issued and Not Yet Adopted) In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Recent Accounting Pronouncements (Issued and Adopted) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of revenue disaggregated by type | The following table present s 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 |
Summary of revenue disaggregated by geography | Revenue disaggregated by geography, based on user location, consists of the following (in thousands): 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of company's financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis | The following table sets forth the Company’s financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis as of the dates indicated (in thousands): 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 |
Summary of reconciliation of the Company's financial asset and liability measured at fair value | The following table presents a reconciliation of the Company’s financial asset and liability measured at fair value as of March 31, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands): 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 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Geewa A S [Member] | |
Summary of the fair value of identifiable assets acquired and liabilities assumed | The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): 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 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity | The following table presents goodwill activity (in thousands): December 31, 2020 $ 249,773 Foreign currency translation (388 ) March 31, 2021 $ 249,385 |
Summary of Intangible Assets Acquired Net | Acquired intangible assets, net consisted of the following (in thousands): 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 |
Summary of Finite-Lived Intangible Assets, Amortization Expense | The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands): 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 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Share-Based Payment Arrangement Expenses | The Company recognized stock-based compensation expense for the periods indicated as follows (in thousands): 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 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data): 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 — — 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 — — 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 |
Summary of antidilutive potential common shares | The following table presents the forms of antidilutive potential common shares: 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 — 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense (Benefit) | Three Months Ended March 31 (In thousands) 2021 2020 Provision for (benefit from) income taxes $ (3,180 ) $ 2,864 |
Description of Business and P_2
Description of Business and Principles of Consolidation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 30, 2021 | Apr. 19, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Date of incorporation | Jul. 18, 2011 | |||
Entity incorporation state or country code | DE | |||
Preferred stock shares converted into equity | 0 | |||
KKR Denali Holdings L P [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Repayment of revolving credit facility | $ 400 | |||
Common Class A [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares authorized | 386,400,000 | 386,400,000 | ||
Common stock shares issued | 184,817,898 | 183,800,251 | ||
Common stock shares outstanding | 184,817,898 | 183,800,251 | ||
Common Class C [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares issued | 0 | |||
Common stock shares outstanding | 0 | |||
Subsequent Event [Member] | Common Class A [Member] | Restated Certificate Of Incorporation [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares authorized | 1,500,000,000 | |||
Subsequent Event [Member] | Common Class A [Member] | Conversion Of Class A Common Stock Into Class B Common Stock [Member] | KKR Denali [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common Stock Shares Converted From One Class To Another | 150,307,622 | |||
Subsequent Event [Member] | Common Class A [Member] | Conversion Of Class A Common Stock Into Class B Common Stock [Member] | Adam Foroughi [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common Stock Shares Converted From One Class To Another | 150,307,622 | |||
Subsequent Event [Member] | Common Class A [Member] | Conversion Of Class A Common Stock Into Class B Common Stock [Member] | Herald Chen [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common Stock Shares Converted From One Class To Another | 150,307,622 | |||
Subsequent Event [Member] | Common Class B [Member] | Restated Certificate Of Incorporation [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares authorized | 200,000,000 | |||
Subsequent Event [Member] | Common Class C [Member] | Restated Certificate Of Incorporation [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares authorized | 150,000,000 | |||
Subsequent Event [Member] | Preferred Stock [Member] | Restated Certificate Of Incorporation [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Preferred stock shares authorized | 100,000,000 | |||
Subsequent Event [Member] | IPO [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Common stock shares issued during the period shares | 22,500,000 | |||
Sale of stock issue price per share | $ 80 | |||
Sale of stock net consideration received on the transaction | $ 1,750 | |||
Underwriting discounts and commissions | 47.2 | |||
Offering expenses | $ 7.9 |
Revenue - Summary of revenue di
Revenue - Summary of revenue disaggregated by type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Total Business Revenue | $ 245,382 | $ 146,261 |
Revenues | 603,877 | 260,178 |
Business Revenue - Apps [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Business Revenue | 156,963 | 99,749 |
Business Revenue - Software Platform [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Business Revenue | 88,419 | 46,512 |
Consumer Revenue [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 358,495 | $ 113,917 |
Revenue - Summary of revenue _2
Revenue - Summary of revenue disaggregated by geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 603,877 | $ 260,178 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 366,166 | 162,088 |
Rest of the World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 237,711 | $ 98,090 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 57.7 | $ 8.1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of company's financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | $ 22,571 | $ 12,093 |
Money market funds [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Balance Sheet Location | Cash and cash equivalents | Cash and cash equivalents |
Financial Assets | $ 477 | $ 6,413 |
Marketable security [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Balance Sheet Location | Prepaid expenses and other current assets | |
Financial Assets | $ 5,354 | |
Embedded derivative [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Balance Sheet Location | Long-term debt | Long-term debt |
Financial Assets | $ 16,740 | $ 5,680 |
Convertible security [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Balance Sheet Location | Deferred acquisition costs, current | Deferred acquisition costs, current |
Financial Liability | $ 47,200 | $ 46,500 |
Level 1 [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | 5,831 | 6,413 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | 477 | 6,413 |
Level 1 [Member] | Marketable security [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | 5,354 | |
Level 3 [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | 16,740 | 5,680 |
Level 3 [Member] | Embedded derivative [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Assets | 16,740 | 5,680 |
Level 3 [Member] | Convertible security [Member] | ||
Fair Value By Fair Value Hierarchy Level [Line Items] | ||
Financial Liability | $ 47,200 | $ 46,500 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of reconciliation of the Company's financial asset and liability measured at fair value (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Embedded derivative [Member] | |
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items] | |
Balance beginning | $ 5,680 |
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 |
Balance ending | 16,740 |
Convertible security [Member] | |
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items] | |
Balance beginning | 46,500 |
Change in fair value recognized in earnings | 700 |
Balance ending | $ 47,200 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Feb. 12, 2021 | |
Gain loss due to change in the fair value of embedded derivatives | $ 6,600 | $ 0 | |
Embedded derivative | $ 5,600 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Unrealized gain loss due to change in fair value of marketable securities | 5,400 | ||
Convertible Debt Securities [Member] | |||
Gain loss due to change in the fair value | $ 700 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Standby Letters of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 11.1 | $ 11.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 01, 2021 | Jan. 01, 2021 | Mar. 01, 2020 | Jan. 31, 2020 | Feb. 28, 2021 | Mar. 31, 2021 |
Geewa A.S [Member] | ||||||
Total consideration | $ 25,629 | |||||
Consideration paid | 23,500 | |||||
Consideration indemnity holdback | 2,100 | |||||
Business combination acquisition related costs | $ 300 | |||||
Zenlife asset acquisition [Member] | ||||||
Earn-out payment related to asset acquisition | $ 27,200 | |||||
Adjust Gmbh [Member] | ||||||
Consideration paid | $ 598,000 | |||||
Business combination number of consecutive trading days for determining number of shares issuable upon conversion | 10 days | |||||
Business combination total number of trading days for determning number of shares issuable upon conversion | 20 days | |||||
Repayment of acquiree debt | $ 40,000 | |||||
Adjust Gmbh [Member] | Convertible Securities Convertible Into Class A Common Stock [Member] | ||||||
Stated value of share settled liability | $ 352,000 | |||||
Acquistion Of Certain Mobile Game Apps [Member] | ||||||
Payment of asset acquisition consideration | $ 90,000 | $ 60,000 | $ 30,000 | $ 8,600 | ||
2021 Acquisitions [Member] | ||||||
Business combination total number of trading days for determning number of shares issuable upon conversion | 20 days |
Acquisitions - Schedule Of Reco
Acquisitions - Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |||
Goodwill | $ 249,385 | $ 249,773 | |
Geewa A S [Member] | |||
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |||
Cash | $ 1,043 | ||
Accounts receivable and other current assets | 1,457 | ||
Apps | 17,040 | ||
Tradename | 260 | ||
Developed Technology | 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 |
Acquisitions - Schedule Of Re_2
Acquisitions - Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed (Parenthetical) (Detail) - Geewa A S [Member] | 3 Months Ended |
Mar. 31, 2021 | |
Apps [Member] | |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Trade Names [Member] | |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Developed Technology Rights [Member] | |
Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets, Net - Summary of Goodwill Activity (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Line Items] | |
December 31, 2020 | $ 249,773 |
Foreign currency translation | (388) |
March 31, 2021 | $ 249,385 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets, Net - Summary of Intangible Assets Acquired Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 1,036,800 | $ 1,086,332 |
Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,374,866 | 1,358,052 |
Accumulated Amortization | (338,066) | (271,720) |
Net Book Value | 1,036,800 | 1,086,332 |
Short and Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,408,450 | 1,387,921 |
Accumulated Amortization | (367,436) | (297,319) |
Net Book Value | $ 1,041,014 | 1,090,602 |
Apps [Member] | Short Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 4 months 24 days | |
Gross Carrying Value | $ 33,584 | 29,869 |
Accumulated Amortization | (29,370) | (25,599) |
Net Book Value | $ 4,214 | 4,270 |
Apps [Member] | Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 4 years 2 months 12 days | |
Gross Carrying Value | $ 1,239,252 | 1,222,417 |
Accumulated Amortization | (290,213) | (232,832) |
Net Book Value | $ 949,039 | 989,585 |
User Base [Member] | Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 5 years | |
Gross Carrying Value | $ 68,817 | 68,817 |
Accumulated Amortization | (20,055) | (17,617) |
Net Book Value | $ 48,762 | 51,200 |
License Asset [Member] | Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 7 months 6 days | |
Gross Carrying Value | $ 28,551 | 28,551 |
Accumulated Amortization | (15,266) | (10,918) |
Net Book Value | $ 13,285 | 17,633 |
Developed technology [Member] | Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 1 year 2 months 12 days | |
Gross Carrying Value | $ 14,946 | 14,946 |
Accumulated Amortization | (9,812) | (8,489) |
Net Book Value | $ 5,134 | 6,457 |
Other [Member] | Long Lived Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 7 years 4 months 24 days | |
Gross Carrying Value | $ 23,300 | 23,321 |
Accumulated Amortization | (2,720) | (1,864) |
Net Book Value | $ 20,580 | $ 21,457 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets, Net - Summary of Finite-Lived Intangible Assets, Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization of Intangible Assets | $ 85,394 | $ 30,270 |
Cost of revenue | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization of Intangible Assets | 82,185 | 27,576 |
Sales and marketing | ||
Finite Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization of Intangible Assets | $ 3,209 | $ 2,694 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Details) - USD ($) $ in Thousands | Apr. 16, 2021 | Mar. 31, 2021 | Feb. 12, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 30, 2020 | Oct. 27, 2020 | May 06, 2020 | Apr. 23, 2019 | Aug. 15, 2018 |
Debt Instrument [Line Items] | ||||||||||
Embedded derivative | $ 5,600 | |||||||||
Debt instrument loss on extinguishment of debt | $ (16,852) | $ 0 | ||||||||
Debt Instrument, Periodic Payment, Principal | 4,600 | |||||||||
Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in the variable interest rate margin | 0.25% | |||||||||
Fifth Amendment Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
New term loan | 597,800 | |||||||||
Debt issuance costs | 3,500 | |||||||||
Third party debt issuance costs that were expensed immediately | 2,900 | |||||||||
Debt issuance costs, gross | $ 600 | |||||||||
Percentage change of present value of cash flow between the original and modified debt | 10.00% | |||||||||
Debt instrument loss on extinguishment of debt | $ 16,900 | |||||||||
Fifth Amendment Term Loan [Member] | Contingent Interest Adjustment Feature [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Embedded derivative | 5,600 | |||||||||
Third Amendment Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
New term loan | $ 300,000 | |||||||||
Repayment of long term debt | 298,200 | |||||||||
Amended Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument increase in the credit facility | $ 150,000 | |||||||||
Lender commitment under the line of credit | 10,000 | $ 540,000 | $ 50,000 | |||||||
Amended Revolving Credit Facility [Member] | Affiliate Of KKR Denali [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from long term line of credit facility | $ 250,000 | 250,000 | ||||||||
Line of credit facility maximum borrowing capacity | 600,000 | 600,000 | ||||||||
Line of credit non current outstanding | $ 400,000 | $ 400,000 | ||||||||
Amended Revolving Credit Facility [Member] | Affiliate Of KKR Denali [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in the variable interest rate margin | 0.25% | |||||||||
Fifth Amendment Term Loan And Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs paid to related party | $ 800 | |||||||||
Closing Term Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
New term loan | $ 400,000 | $ 820,000 |
Cash Flow Hedges - Additional I
Cash Flow Hedges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2021 | Nov. 14, 2018 | |
Cash Flow Hedges | |||
Settlement value of interest rate swap liability before tax | $ 7.7 | ||
Receive Variable Pay Fixed Rate [Member] | Interest Rate Swap [Member] | |||
Cash Flow Hedges | |||
Interest rate swap notional amount | $ 410 | ||
Derivatives interest rate swap fixed interest rate | (2.9065%) | ||
Derivative hedges realized gain loss | $ 1.3 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Share-based Payment Arrangement, Expensed (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 29,959 | $ 3,462 |
Cost Of Revenue [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 109 | 29 |
Sales And Marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,819 | 452 |
Research And Development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 6,465 | 1,527 |
General And Administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 21,566 | $ 1,454 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2021 | Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 29,959 | $ 3,462 | ||
Employee promissory note settled in shares | $ 17,200 | |||
Employee promissory note settled in cash | 3,700 | |||
Number of options vested. | 21,000 | |||
Percentage of unvested options accelerated upon the occurrence of a qualified event | 100.00% | |||
Number of share options exercised | 185,000 | |||
Liabilities related to exercised options subject to repurchase | $ 2,700 | |||
Stock option contractual term | 10 years | |||
Promissory notes [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Employee promissory note outstanding | $ 19,700 | $ 21,200 | ||
Employee promissory note settled | $ 20,900 | |||
Common class A [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Number of shares recognized cost | 60,968 | |||
Number of share options exercised | 3,874,999 | 5,709,999 | ||
Common class A [Member] | Equity Option [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Exercised options subject to repurchase | 458,499 | 0 | ||
Common class A [Member] | Promissory notes [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Early exercised options with promissory note | 1,740,313 | 4,935,000 | ||
2011 equity incentive plan [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 300 | |||
Common stock reserved for future issuance under equity incentive plan | 3,754,596 | |||
2011 equity incentive plan [Member] | Common class A [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Capital shares reserved for future issuance | 125,316,000 | |||
2011 equity incentive plan [Member] | Common Stock [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Number of shares stock option | 206,000 | |||
Share based compensation by share based payment arrangement vesting percentage | 0.833% | |||
Employee Stock Purchase Plan | Common class A [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation by share based payment arrangement increase in the number of shares available for future issuance as a percentage of outstanding stock | 1.00% | |||
Percentage of eligible compensation eligible for participation in the stock purchase plan | 15.00% | |||
Share based compensation by share based payment arrangement purchase price of the stock as a percentage of fair value | 85.00% | |||
Share based compensation by share based payment arrangement maximum number of shares per employee | 590 | |||
Share based compensation by share based payment arrangement number of shares available for issuance | 7,800,000 | |||
Share based compensation by share based payment arrangement number of additional shares available for issuance | 7,800,000 | |||
2021 Partner Studio Incentive Plan [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Capital shares reserved for future issuance | 390,000 | |||
2021 equity incentive plan [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Capital shares reserved for future issuance | 39,000,000 | |||
Share based compensation by share based payment arrangement increase in the number of shares available for future issuance | 39,000,000 | |||
Share based compensation by share based payment arrangement increase in the number of shares available for future issuance as a percentage of outstanding stock | 5.00% |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) attributable to AppLovin | $ (10,521) | $ 4,664 |
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 |
Numerator: | ||
Net income (loss) attributable to AppLovin | $ (10,521) | $ 4,664 |
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 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Summary Of Antidilutive Potential Common Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 133,788,868 | 119,955,663 |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 109,090,908 | 109,090,908 |
Stock options exercised for promissory notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 3,874,999 | 5,709,999 |
Early exercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 458,499 | 0 |
Unvested RSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 782,895 | 3,252,519 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares | 19,581,567 | 1,902,237 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / shares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Number of days following the effective date of an initial public offering | 61 days |
Number of contractual preceding days in determining conversion price | 20 days |
Common Class A [Member] | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Stated value of convertible security | $ | $ 40 |
Conversion price multiple | $ / shares | $ 0.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income tax provision (benefit) | $ (3,180) | $ 2,864 |
Income Taxes - Summary Of Compo
Income Taxes - Summary Of Components Of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision for (benefit from) income taxes | $ (3,180) | $ 2,864 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
May 31, 2021 | Apr. 30, 2021 | |
Subsequent Event [Line Items] | ||
Contractual obligation amount | $ 130 | |
Amended contractual obligation amount | $ 300 | |
Restricted Stock Units (RSUs) [Member] | ||
Subsequent Event [Line Items] | ||
Share-based payment arrangement, restricted stock unit, granted | 6,038,514 | |
Restricted stock units granted, price per share | $ 58.55 | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Share-based payment arrangement, restricted stock unit, granted, vesting period | 5 years | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Share-based payment arrangement, restricted stock unit, granted, vesting period | 4 years | |
Mobile Game Apps From Two Separate Independent Foreign Based Mobile Game Developers [Member] | ||
Subsequent Event [Line Items] | ||
Asset acquisition upfront payment | $ 300 | |
Earn-out payment related to asset acquisition | $ 50 |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Feb. 12, 2021 | Mar. 31, 2021 |
Fifth Amendment Term Loan And Revolving Credit Facility [member] | |||
Related Party Transaction [Line Items] | |||
Debt issuance costs paid to related party | $ 0.8 | ||
Affiliate Of KKR Denali [member] | Amended Revolving Credit Facility [member] | |||
Related Party Transaction [Line Items] | |||
Proceeds from long term line of credit facility | $ 250 | $ 250 | |
Line of credit facility maximum borrowing capacity | $ 600 | $ 600 |