AppLovin (APP) 10-Q 13 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 01, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-40325
Entity Registrant Name	AppLovin Corporation
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
Title of 12(b) Security	Class A common stock, par value $0.00003 per share
Trading Symbol	APP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001751008
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		224,542,213
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		147,807,622

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,183,743	$ 317,235
Accounts receivable, net	383,133	296,964
Prepaid expenses and other current assets	149,969	48,795
Total current assets	1,716,845	662,994
Property and equipment, net	62,986	28,587
Operating lease right-of-use assets	80,092	84,336
Goodwill	1,016,074	249,773
Intangible assets, net	1,675,669	1,086,332
Other assets	47,905	42,571
Total assets	4,599,571	2,154,593
Current liabilities:
Accounts payable	192,658	147,275
Accrued liabilities	130,485	95,057
Licensed asset obligation	17,856	18,760
Short-term debt	18,310	15,210
Deferred revenue	90,054	86,886
Operating lease liabilities	24,536	22,206
Deferred acquisition costs, current	129,280	212,658
Total current liabilities	603,179	598,052
Non-current liabilities:
Long-term debt	1,733,676	1,583,990
Operating lease liabilities, noncurrent	65,371	71,755
Other non-current liabilities	199,708	59,032
Total liabilities	2,601,934	2,312,829
Commitments and Contingencies (Note 5)
Redeemable noncontrolling interest	196	309
Stockholders’ equity (deficit):
Convertible preferred stock, 100,000,000 and 109,090,908 shares authorized, nil and 109,090,908 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	0	399,589
Class A, Class B and Class F common stock, $0.00003 par value—1,700,000,000 (Class A 1,500,000,000, Class B 200,000,000, Class F nil) and 429,600,000 (Class A 386,400,000, Class B nil, Class F 43,200,000) shares authorized, 372,165,319 (Class A 224,357,697, Class B 147,807,622, Class F nil) and 226,364,401 (Class A 183,800,251, Class B nil, Class F 42,564,150) shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	11	7
Additional paid-in capital	3,015,233	453,655
Accumulated other comprehensive income (loss)	(9,305)	604
Accumulated deficit	(1,008,498)	(1,012,400)
Total stockholders’ equity (deficit)	1,997,441	(158,545)
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity (deficit)	$ 4,599,571	$ 2,154,593

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Preferred stock, shares authorized (in shares)	100,000,000	109,090,908
Preferred stock, shares issued (in shares)	0	109,090,908
Preferred stock, shares outstanding (in shares)	0	109,090,908
Common stock, par value (in dollars per share)	$ 0.00003	$ 0.00003
Common stock, shares authorized (in shares)	1,700,000,000	429,600,000
Common stock, shares issued (in shares)	372,165,319	226,364,401
Common stock, shares outstanding (in shares)	372,165,319	226,364,401
Class A Common Stock
Common stock, shares authorized (in shares)	1,500,000,000	386,400,000
Common stock, shares issued (in shares)	224,357,697	183,800,251
Common stock, shares outstanding (in shares)	224,357,697	183,800,251
Class B Common Stock
Common stock, shares authorized (in shares)	200,000,000	0
Common stock, shares issued (in shares)	147,807,622	0
Common stock, shares outstanding (in shares)	147,807,622	0
Class F Common Stock
Common stock, shares authorized (in shares)	0	43,200,000
Common stock, shares issued (in shares)	0	42,564,150
Common stock, shares outstanding (in shares)	0	42,564,150

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 668,806	$ 299,331	$ 1,272,683	$ 559,509
Costs and expenses:
Cost of revenue	245,853	118,051	468,914	194,504
Sales and marketing	265,463	135,319	530,976	263,986
Research and development	77,462	29,702	138,338	48,814
General and administrative	45,050	15,170	88,012	25,980
Lease modification and abandonment of leasehold improvements	0	7,851	0	7,851
Total costs and expenses	633,828	306,093	1,226,240	541,135
Income (loss) from operations	34,978	(6,762)	46,443	18,374
Other income (expense):
Interest expense and loss on settlement of debt	(19,030)	(18,809)	(54,040)	(37,438)
Other income (expense), net	(1,570)	3,157	8,220	4,178
Total other income (expense)	(20,600)	(15,652)	(45,820)	(33,260)
Income (loss) before income taxes	14,378	(22,414)	623	(14,886)
Provision for (benefit from) income taxes	14	(703)	(3,166)	2,161
Net income (loss)	14,364	(21,711)	3,789	(17,047)
Add: Net loss attributable to noncontrolling interest	59	320	113	320
Net income (loss) attributable to AppLovin	14,423	(21,391)	3,902	(16,727)
Less: Net income attributable to participating securities	(1,128)	0	(807)	0
Net income (loss) attributable to common stock—Basic	13,295	(21,391)	3,095	(16,727)
Net income (loss) attributable to common stock—Diluted	$ 13,349	$ (21,391)	$ 3,137	$ (16,727)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.04	$ (0.10)	$ 0.01	$ (0.08)
Diluted (in dollars per share)	$ 0.04	$ (0.10)	$ 0.01	$ (0.08)
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	335,619,207	213,440,147	279,326,624	212,169,247
Diluted (in shares)	353,857,814	213,440,147	298,506,265	212,169,247

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 14,364	$ (21,711)	$ 3,789	$ (17,047)
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss), net of tax effect of $2.6 million for the three and six months ended June 30, 2021	(9,188)	96	(9,909)	60
Interest rate swap gain, net of tax effect of $0.4 million and $1.0 million for the three and six months ended June 30, 2020	0	2,455	0	588
Total other comprehensive income (loss)	(9,188)	2,551	(9,909)	648
Add: Net loss attributable to noncontrolling interest	59	320	113	320
Total comprehensive income (loss) attributable to Applovin	$ 5,235	$ (18,840)	$ (6,007)	$ (16,079)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Foreign currency translation gain (loss) tax component	$ 2.6		$ 2.6
Interest rate swap gain tax component		$ 0.4		$ 1

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	IPO	Additional Paid-In Capital	Additional Paid-In CapitalIPO	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Redeemable Noncontrolling Interest	Convertible Preferred Stock	Convertible Preferred StockIPO	Common Stock	Common StockIPO
Balance at beginning of period at Dec. 31, 2019							$ 0
Balance at end of period at Mar. 31, 2020							0
Balance at beginning of period (in shares) at Dec. 31, 2019								109,090,908		220,157,922
Balance at beginning of period at Dec. 31, 2019	$ (256,567)		$ 235,190		$ (4,140)	$ (887,213)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)										442,503
Exercises and vesting of early exercised Class A common stock options	145		145
Repurchase of unvested Class A common stock related to early exercised stock (in shares)										(425,001)
Repurchase of Class A common stock (in shares)										(114,000)
Repurchase of Class A common stock	(760)		(760)
Stock-based compensation	3,462		3,462
Total other comprehensive loss, net	(1,903)				(1,903)
Net income (loss)	4,664					4,664
Balance at end of period (in shares) at Mar. 31, 2020								109,090,908		220,061,424
Balance at end of period at Mar. 31, 2020	(250,959)		238,037		(6,043)	(882,549)		$ 399,589		$ 7
Balance at beginning of period at Dec. 31, 2019							0
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss)	320
Balance at end of period at Jun. 30, 2020							2,236
Balance at beginning of period (in shares) at Dec. 31, 2019								109,090,908		220,157,922
Balance at beginning of period at Dec. 31, 2019	(256,567)		235,190		(4,140)	(887,213)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(16,727)
Balance at end of period (in shares) at Jun. 30, 2020								109,090,908		219,964,017
Balance at end of period at Jun. 30, 2020	(226,468)		281,368		(3,492)	(903,940)		$ 399,589		$ 7
Balance at beginning of period at Mar. 31, 2020							0
Increase (Decrease) in Temporary Equity [Roll Forward]
Acquisition of noncontrolling interest							2,556
Net income (loss)	320						(320)
Balance at end of period at Jun. 30, 2020							2,236
Balance at beginning of period (in shares) at Mar. 31, 2020								109,090,908		220,061,424
Balance at beginning of period at Mar. 31, 2020	(250,959)		238,037		(6,043)	(882,549)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)										37,593
Exercises and vesting of early exercised Class A common stock options	117		117
Repurchase of Class A common stock (in shares)										(135,000)
Repurchase of Class A common stock	(1,006)		(1,006)
Issuance of common stock warrants and options in connection with an acquisition	39,040		39,040
Issuance of common stock warrants in connection with lease modification	433		433
Stock-based compensation	4,747		4,747
Total other comprehensive loss, net	2,551				2,551
Net income (loss)	(21,391)					(21,391)
Balance at end of period (in shares) at Jun. 30, 2020								109,090,908		219,964,017
Balance at end of period at Jun. 30, 2020	(226,468)		281,368		(3,492)	(903,940)		$ 399,589		$ 7
Balance at beginning of period at Dec. 31, 2020	309						309
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss)							(54)
Balance at end of period at Mar. 31, 2021							255
Balance at beginning of period (in shares) at Dec. 31, 2020								109,090,908		226,364,401
Balance at beginning of period at Dec. 31, 2020	(158,545)		453,655		604	(1,012,400)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)										1,232,156
Exercises and vesting of early exercised Class A common stock options	10,143		10,143
Repurchase of Class A common stock (in shares)										(214,509)
Stock-based compensation	29,667		29,667
Total other comprehensive loss, net	(721)				(721)
Net income (loss)	(10,521)					(10,521)
Balance at end of period (in shares) at Mar. 31, 2021								109,090,908		227,382,048
Balance at end of period at Mar. 31, 2021	(129,977)		493,465		(117)	(1,022,921)		$ 399,589		$ 7
Balance at beginning of period at Dec. 31, 2020	309						309
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss)	113
Balance at end of period at Jun. 30, 2021	196						196
Balance at beginning of period (in shares) at Dec. 31, 2020								109,090,908		226,364,401
Balance at beginning of period at Dec. 31, 2020	(158,545)		453,655		604	(1,012,400)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,902
Balance at end of period (in shares) at Jun. 30, 2021								0		372,165,319
Balance at end of period at Jun. 30, 2021	1,997,441		3,015,233		(9,305)	(1,008,498)		$ 0		$ 11
Balance at beginning of period at Mar. 31, 2021							255
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss)	59						(59)
Balance at end of period at Jun. 30, 2021	196						$ 196
Balance at beginning of period (in shares) at Mar. 31, 2021								109,090,908		227,382,048
Balance at beginning of period at Mar. 31, 2021	(129,977)		493,465		(117)	(1,022,921)		$ 399,589		$ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)										1,020,588
Exercises and vesting of early exercised Class A common stock options	5,190		5,190
Exercise of warrant, net of shares withheld (in shares)										6,229,081
Repurchase of Class A common stock (in shares)										(390,000)
Issuance of common stock warrants and options in connection with an acquisition (in shares)										6,320,688
Issuance of common stock warrants and options in connection with an acquisition	342,170		342,170
Issuance of Class A common stock (in shares)										12,006
Issuance of Class A common stock in connection with initial public offering, net of issuance costs as adjusted for cost reimbursement (in shares)										22,500,000
Issuance of Class A common stock in connection with initial public offering, net of issuance costs as adjusted for cost reimbursement	1,747,971		1,747,970							$ 1
Conversion of preferred stock to common stock in connection with initial public offering (in shares)									(109,090,908)		109,090,908
Conversion of preferred stock to common stock in connection with initial public offering		$ 0		$ 399,586					$ (399,589)		$ 3
Stock-based compensation	26,852		26,852
Total other comprehensive loss, net	(9,188)				(9,188)
Net income (loss)	14,423					14,423
Balance at end of period (in shares) at Jun. 30, 2021								0		372,165,319
Balance at end of period at Jun. 30, 2021	$ 1,997,441		$ 3,015,233		$ (9,305)	$ (1,008,498)		$ 0		$ 11

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating Activities
Net income (loss)	$ 3,789	$ (17,047)
Adjustments to reconcile net income (loss) to operating activities:
Amortization, depreciation and write-offs	195,973	83,704
Amortization of debt issuance costs and discount	6,380	3,414
Stock-based compensation	57,103	8,494
Change in operating right-of-use asset	12,267	3,578
Lease modification and abandonment of leasehold improvements	0	7,851
Loss on settlement of debt	16,852	0
Net unrealized gains on fair value remeasurement of financial instruments	(9,855)	(2,940)
Net gain on foreign currency remeasurement	952	203
Changes in operating assets and liabilities:
Accounts receivable	(69,881)	7,708
Prepaid expenses and other current assets	(92,851)	(16,840)
Other assets	5,269	2,598
Accounts payable	33,936	(5,713)
Operating lease liabilities	(12,083)	(2,828)
Accrued and other liabilities	6,752	(2,839)
Deferred revenue	(2,327)	15,915
Net cash provided by operating activities	152,276	85,258
Investing Activities
Purchase of property and equipment	(653)	(1,183)
Acquisitions, net of cash acquired	(1,017,012)	(523,202)
Purchase of non-marketable investments and other	(14,000)	0
Proceeds from other investing activities	10,000	0
Capitalized software development costs	(1,517)	0
Net cash used in investing activities	(1,023,182)	(524,385)
Financing Activities
Proceeds from issuance of common stock in initial public offering, net of issuance costs as adjusted for cost reimbursement	1,744,240	0
Proceeds from debt issuance, net of issuance costs	844,729	331,346
Payments of debt principal	(706,905)	(56,690)
Payments of finance leases	(4,621)	(4,356)
Proceeds from exercise of stock options	17,888	262
Payments of deferred acquisition costs	(157,565)	(11,020)
Repurchases of common stock	0	(1,766)
Net cash provided by financing activities	1,737,766	257,776
Effect of foreign exchange rate on cash and cash equivalents	(352)	9
Net increase (decrease) in cash and cash equivalents	866,508	(181,342)
Cash and cash equivalents at beginning of the period	317,235	396,247
Cash and cash equivalents at end of the period	1,183,743	214,905
Supplemental non-cash investing and financing activities disclosures:
Issuance of convertible security related to acquisitions	342,170	0
Acquisitions of business through issuance of common stock and common stock warrants	0	38,167
Acquisitions not yet paid	119,256	9,169
Deferred IPO costs not yet paid	986	0
Assets acquired under finance leases	2,658	2,780
Right of use assets acquired under operating leases	0	6,937
Supplemental disclosure of cash flow information:
Cash paid for interest on debt	31,767	30,236
Cash paid for income taxes	$ 32,737	$ 1,866

Description of Business and Pri

Description of Business and Principles of Consolidation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Principles of Consolidation	Description of Business and Principles of Consolidation Description of Business AppLovin Corporation (the “Company” or “AppLovin”) was incorporated in the state of Delaware on July 18, 2011. The Company is a leader in the mobile app industry with a focus on building a software-based platform for mobile app developers to improve the marketing and monetization of their apps. The Company also has a globally diversified portfolio of apps—free-to-play mobile games that it operates through its own or partner studios. 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 and six months ended June 30, 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 (the “IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on April 14, 2021, and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on April 15, 2021. On April 19, 2021, the Company completed its IPO, in which the Company sold 22,500,000 shares of Class A common stock at price to the public of $80.00 per share. The Company received aggregate net proceeds of $1.75 billion after deducting underwriting discounts and commissions of $47.2 million and offering expenses of $7.9 million subject to certain cost reimbursements. KKR Capital Markets LLC was an underwriter for the IPO and is an affiliate of KKR Denali Holdings L.P. (“KKR Denali”), who is a principal stockholder of the Company. The Company used $400.0 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, all shares of Class F common stock and Series A convertible preferred stock then outstanding automatically converted into the equivalent number of shares of Class A common stock, respectively (the “Capital Stock Conversions”). Following the Capital Stock Conversions and immediately prior to the completion of the IPO, a total of 150,307,622 shares of Class A common stock held by Adam Foroughi, the Company’s co-founder, CEO, and Chairperson; Herald Chen, the Company’s President and Chief Financial Officer, and a member of the Company’s board of directors; and KKR Denali (collectively with certain affiliates, the Class B Stockholders) were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements. 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 as of June 30, 2021. 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 of the outstanding shares of the Company’s Class B common stock voting as a separate class will be required to amend or modify any provision of the IPO Certificate inconsistent with, or otherwise alter, any provision of the IPO Certificate to modify the voting, conversion, or other rights, powers, preferences, privileges, or restrictions of the Company’s Class B common stock. 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 entered into a voting agreement (the “Voting Agreement”) whereby all Class B common stock held by the Class B Stockholders and their respective permitted entities and permitted transferees will be voted as determined by two of Mr. Foroughi, Mr. Chen, and KKR Denali (one of which must be Mr. Foroughi). 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, the assets legally available for distribution to the Company’s stockholders would be distributable ratably among the holders of the Company’s common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock. 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 basis, on the date or time specified by the holders of a majority of the outstanding shares of Class A common stock, voting as a separate class. 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	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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 purchases (“IAPs”) made by users within Apps. 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. Such payments are initially recorded to deferred revenue. 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 basis. For a newly launched game that has limited playing data, the Company determines its EAUL based on the EAUL of a game that has sufficiently similar characteristics. The Company determines the EAUL on a quarterly basis and applies such calculated EAUL to all bookings in the respective quarter. Determining the EAUL is subjective and requires management’s judgment. Future playing patterns may differ from historical playing patterns, and therefore the EAUL may change in the future. The EAULs are generally between six 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, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion feature and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and simplifies classification of debt on the balance sheet and earnings per share calculation. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes. In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Option. The ASU requires the issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the guidance, an issuer determines the accounting for the modification or exchange based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes. Recent Accounting Pronouncements (Issued and Adopted) In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The ASU impacts various topic areas within ASC 740, including accounting for taxes under hybrid tax regimes, accounting for increases in goodwill, allocation of tax amounts to separate company financial statements within a group that files a consolidated tax return, intra period tax allocation, interim period accounting, and accounting for ownership changes in investments, among other minor codification improvements. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption. In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table presents revenue disaggregated by type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Business Revenue - Apps $ 162,223 $ 95,583 $ 319,186 $ 195,332 Business Revenue - Software Platform 145,664 40,909 234,083 87,421 Total Business Revenue 307,887 136,492 553,269 282,753 Consumer Revenue 360,919 162,839 719,414 276,756 Total Revenue $ 668,806 $ 299,331 $ 1,272,683 $ 559,509 Revenue disaggregated by geography, based on user location, consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 United States $ 406,179 $ 189,812 $ 772,345 $ 351,900 Rest of the World 262,627 109,519 500,338 207,609 Total Revenue $ 668,806 $ 299,331 $ 1,272,683 $ 559,509 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 June 30, 2021 and 2020, the Company recognized $59.5 million and $8.0 million of revenue that was included in deferred revenue as of March 31, 2021 and 2020, respectively. During the six months ended June 30, 2021 and 2020, the Company recognized $81.4 million and $8.2 million of revenue that was included in 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	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	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 June 30, 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 4,715 4,715 Total financial assets $ 5,192 $ 5,192 $ — $ — Financial Liability: Convertible security Deferred acquisition costs, current $ 49,000 $ — $ — $ 49,000 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 "Seller"). 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 and a discount for lack of marketability derived based on the remaining term of the lock up period related to the Company's Class A common stock into which the convertible security is convertible. 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 and six months ended June 30, 2021, the Company recorded a total loss of $1.8 million and $2.5 million, respectively, in other income (expense), 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. 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 terms of the Credit Agreement. As a result, the embedded derivative for the contingent interest adjustment feature related to the term loans was settled. The Company remeasured the embedded derivative to its fair value of $17.8 million on the settlement date, and then reclassified it to the carrying amount of the term loans. For the three and six months ended June 30, 2021, the Company recorded a total gain of $1.1 million and $7.6 million, respectively, in other income (expense), net in the Company’s condensed consolidated statements of operations due to the change in fair value of the embedded derivative. There was no gain or loss related to the change in fair value of the embedded derivative during the same periods in 2020. 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 June 30, 2021, and therefore was classified as a Level 1 fair value measurement. For the three and six months ended June 30, 2021, the Company recorded a total unrealized loss and gain of $0.6 million and $4.7 million, respectively, in other income (expense), 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 June 30, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands): Embedded Convertible 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 7,640 2,500 Settlement (17,820) — Balance as of June 30, 2021 $ — $ 49,000

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments 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. 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 June 30, 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 June 30, 2021, the Company did not have any material indemnification claims that were probable or reasonably possible. Non-income Taxes The Company may be subject to audit by various tax authorities with regard to non-income tax matters. The subject matter of non-income tax audits primarily arises from different interpretations on tax treatment and tax rates applied. The Company accrues liabilities for non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable, and the expense is recorded as a reduction of revenue or to general and administrative expenses depending on the nature of the liability.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions 2021 Acquisitions Business Combinations On April 20, 2021, the Company acquired adjust GmbH (“Adjust”), a mobile application tracking and analytics company. The Company purchased all of the outstanding shares of the capital stock of Adjust and settled all of Adjust’s debt for the stated purchase consideration of $980.0 million, which was composed of $352.0 million stated value of convertible securities convertible into a variable number of shares of the Company's Class A common stock at a variable conversion price, $50.0 million of cash holdback, and remaining amount of 578.0 million in cash consideration. The fair value of the convertible securities and fair value of the cash holdback are estimated to be $342.2 million and $47.6 million, respectively. As such, the fair value of the acquisition consideration is determined to be $967.8 million. The transaction is expected to expand the Company’s Software solutions and has been accounted for as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $3.1 million. The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 12,155 Accounts receivable and other current assets 21,840 Intangible assets Customer Relationships—estimated useful life of 12 years 155,000 Developed Technology—estimated useful life of 6 years 77,000 Tradename—estimated useful life of 5 years 8,000 Goodwill 776,147 Operating lease right-of-use assets 8,130 Property and equipment, net 1,897 Finance lease right-of-use assets 43,156 Other assets 3,191 Accounts payable, accrued liabilities and other current liabilities (15,540) Deferred revenue (5,600) Operating lease liabilities (8,130) Finance lease liabilities (43,156) Deferred income tax liability (66,273) Total purchase consideration $ 967,817 The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date. The Company has completed a preliminary valuation and expects to finalize it as soon as practical, but no later than one year from the acquisition date. The income approach was used to determine the preliminary fair value of the customer relationships, developed technology and tradename. Goodwill represents the excess of the purchase price over the preliminary fair value of identifiable assets acquired and liabilities assumed at the acquisition date and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. For tax purposes, an estimated tax deductible goodwill of $692.5 million was generated as a result of this acquisition. The Company’s condensed consolidated statement of operations for the three months ended June 30, 2021 includes Adjust’s revenue of $21.6 million and pretax loss of $19.2 million for the period from the acquisition date of April 20, 2021 to June 30, 2021. See Pro forma results of operations below under "Supplemental Pro Forma Information". In May 2021, the convertible securities were converted into 6,320,688 shares of the Company's Class A common stock. As a result, the fair value of the Convertible Security was reclassified into the stockholders' equity. Asset Acquisitions In April 2021, the Company completed two separate transactions to acquire certain mobile Apps from two foreign-based independent mobile game developers in exchange for an aggregate upfront cash consideration of $300.0 million and potential future earn-out payments. The Company incurred a total transaction cost of $6.0 million related to these transactions. Both transactions were accounted for as asset acquisitions with $306.0 million allocated to the acquired mobile Apps, which will be amortized over approximately eight years. 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 Apps, as well as to develop new mobile 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 mobile 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. In June 2021, the Company acquired certain mobile Apps from a foreign-based independent mobile game developer in exchange for an upfront cash consideration of $130.0 million and future earn-out payments. The Company incurred a total transaction cost of $4.0 million related to the transaction. The transaction was accounted for as an asset acquisition with $134.0 million allocated to the acquired mobile Apps, which will be amortized over nine years. Concurrent with the closing of the transaction, the Company entered into a development services agreement with the independent mobile game developer to support the acquired mobile Apps, as well as to develop new mobile Apps during the four-year term of the agreement. With respect to all initially acquired mobile Apps, the potential future earn-out payments are contingent on the revenue and/or earnings before interest, taxes, depreciation and amortization ("EBITDA") generated by the acquired Apps exceeding certain thresholds. During the three and six months ended June 30, 2021, the Company also acquired certain mobile Apps for an upfront cash consideration of $8.0 million and $8.0 million, respectively. During the three and six months ended June 30, 2021, the Company recognized total earn-out costs of $51.8 million and $87.6 million, respectively, of which, $40.7 million and $67.9 million were related to an asset acquisition closed in 2020. These earn-out costs increased the book value of the acquired mobile Apps, and are amortized over the remaining useful life of the originally acquired mobile Apps. In January 2021 the Company paid $60.0 million to Recoded, an independent foreign-based mobile game developer, in relation to a new mobile 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 Business Combinations Geewa —On January 31, 2020, the Company acquired Geewa A.S. (“Geewa”), a privately held company specializing in mobile gaming. The transaction expanded the Company’s Apps portfolio and was accounted for as a business combination. The Company purchased all of the outstanding shares of the capital stock of Geewa for a total consideration of $25.6 million, of which $23.5 million was paid in cash and the unpaid balance was attributed to a $2.1 million indemnity holdback that was paid in January 2021. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $0.3 million. 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 identifiable assets acquired and liabilities assumed at the acquisition date 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. Redemption Games— On April 6, 2020, the Company acquired Redemption Games, Inc. (“Redemption Games”), a privately held company specializing in mobile gaming. The transaction expanded the Company’s Apps portfolio and was accounted for as a business combination. As part of the transaction, the Company purchased 95.5% of the outstanding shares of the capital stock of Redemption Games for an aggregate total consideration of $53.7 million. Based on the consideration paid and the percent acquired, the transaction implied a total value for Redemption of $56.2 million. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $0.6 million. In November 2020, the Company increased its ownership in Redemption Games to 98.2% by exchanging 2.7% of minority shares for the Company’s Class A common stock. The difference between the $4.5 million in fair value of the Class A common stock issued and the $1.5 million in fair value of the minority shares was recognized as stock-based compensation in research and development expenses. The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): Cash $ 2,787 Accounts receivable, net 1,850 Intangible assets Apps—estimated useful life of 5 years 44,000 Tradename—estimated useful life of 5 years 900 Goodwill 20,198 Other tangible assets 131 Accounts payable (2,492) Other liabilities (11,142) Total valuation 56,232 Redeemable noncontrolling interest (2,556) Total purchase consideration $ 53,676 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 identifiable assets acquired and liabilities assumed at the acquisition date 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. Machine Zone, Inc.— On May 19, 2020, the Company acquired Machine Zone, Inc. (“Machine Zone”), a privately held company specializing in mobile gaming. The transaction expanded the Company’s Apps portfolio and was accounted for as a business combination. The Company purchased all of the outstanding shares of the capital stock of Machine Zone and settled all Machine Zone debt for an aggregate acquisition price of $328.6 million comprising $287.1 million cash paid to Machine Zone lenders, common stock warrants issued to Machine Zone lenders and preferred stockholders with the aggregate fair value of $38.2 million and a settlement of the preexisting accounts receivable balance of $3.3 million. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $2.8 million. The Company also assumed an IP license agreement with a third-party game content provider that was included in the Machine Zone acquisition. The term of the IP license agreement is set to expire in December 2021 with the option to renew for additional terms by the mutual agreement of the parties. The remaining future fixed payments under the IP license agreement as of the date of the Machine Zone acquisition amounted to $37.1 million. The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): Cash $ 37,767 Accounts receivable and other current assets 27,284 Intangible assets Tradename—estimated useful life of 10 years 13,000 Apps—estimated useful life of 3—5 years 272,000 IP license—useful life of 2 years 28,551 Goodwill 82,353 Right-of-use assets under operating leases 125,639 Property, equipment and other tangible assets 42,312 Accounts payable, accrued liabilities and other liabilities (81,591) Deferred revenue (43,200) License obligation (35,685) Operating lease liabilities (139,875) Total purchase consideration $ 328,555 The income approach was used to value the developed Apps and tradename. The replacement cost approach was used to value the IP license asset. Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed at the acquisition date and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is deductible for tax purposes. Contemporaneously with the closing of the acquisition, the Company exited from one of Machine Zone’s real estate leases. The Company accounted for this lease termination as a transaction separate from the business combination since the lease termination was negotiated primarily for the benefit of the combined entity; the Company was the party who directly negotiated this lease amendment with the lessor; and such negotiation took place contemporaneously with the negotiation of the business combination. The Company decreased the operating lease right-of-use asset and operating lease liability by $57.6 million and $63.1 million, respectively. The Company also wrote-off $15.0 million of leasehold improvements and other assets related to this real estate lease. In connection with this transaction, the Company issued a common stock warrant with the fair value of $0.4 million. The Company’s consolidated statements of operations for the three months ended June 30, 2020 includes Machine Zone’s revenue of $17.8 million and pretax loss of $32.2 million for the period from the acquisition date of May 19, 2020 to June 30, 2020. See Pro forma results of operations below under "Supplemental Pro Forma Information". Asset Acquisitions Zenlife asset acquisition —In June 2020, the Company acquired certain mobile Apps from an independent foreign-based mobile game developer in exchange for an upfront cash consideration of $160.0 million and future earn-out payments for each of the four years from the date of the transaction based on the excess, if any, of revenue generated by the initially acquired mobile App for such year above the sum of (i) an annual fixed baseline revenue and (ii) the aggregate earn-out payments made in prior years. The transaction was accounted for as an asset acquisition with $173.3 million allocated to the acquired mobile Apps and $13.3 million to deferred tax liability. The recorded value of acquired mobile Apps is amortized over five years. Additionally, the Company entered into a service and development agreement with the independent mobile game developer to support the initially acquired mobile Apps as well as to develop new mobile Apps during the four-year term of the agreement. The Company is also required to make future earn-out payments for newly developed mobile Apps determined under the similar approach as for the initially acquired mobile Apps. In March and April 2020, the Company completed two asset acquisitions to acquire two mobile Apps from two separate independent foreign-based mobile game developers in exchange for an aggregate upfront cash consideration of $35.0 million and future earn-out payments. Both transactions were accounted for as asset acquisitions with $35.0 million allocated to the acquired mobile Apps, which will be amortized over three During the three and six months ended June 30, 2020, the Company recognized total earn-out costs of $7.8 million and $13.7 million, respectively, related to all acquired mobile Apps. These earn-out costs increased the book value of the acquired mobile Apps, and are amortized over the remaining useful life of the originally acquired mobile Apps. Supplemental Pro Forma Information The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Machine Zone and Adjust for each of the periods presented as if Adjust had been acquired as of January 1, 2020 and Machine Zone had been acquired as of January 1, 2019 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenue $ 675,869 $ 373,228 $ 1,307,276 $ 727,082 Net income (loss) 23,675 (74,755) 4,014 (176,626) The unaudited supplemental pro forma information above include the following adjustments to net income (loss) in the appropriate pro forma periods (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results $ (1,519) $ (14,707) $ (7,325) $ (36,124) A net increase in revenue related to fair value adjustment 538 9,724 538 9,043 A decrease (increase) in expenses related to transaction expenses 12,903 9,484 14,115 (2,617) An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions (1,350) 33,650 (2,640) 99,759 A (decrease) in other income - liability classified warrants — — — (1,730) An (increase) in tax provision (2,425) (8,752) (1,075) (15,675) The unaudited supplemental pro forma information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisitions taken place on the date indicated, or of the Company's future consolidated results of operations. The supplemental pro forma information presented above has been derived from the Company's historical consolidated financial statements and from the historical accounting records of Adjust and Machine Zone.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net The following table presents goodwill activity (in thousands): December 31, 2020 $ 249,773 Goodwill acquired 776,147 Foreign currency translation (9,846) June 30, 2021 $ 1,016,074 Intangible assets, net consisted of the following (in thousands): Weighted- As of June 30, 2021 As of December 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 5.3 $ 1,718,938 $ (355,652) $ 1,363,286 $ 1,222,417 $ (232,832) $ 989,585 Customer Relationships 11.8 153,103 (2,481) 150,622 — — — User base 4.8 68,817 (22,493) 46,324 68,817 (17,617) 51,200 License asset 0.4 28,551 (19,662) 8,889 28,551 (10,918) 17,633 Developed technology 5.6 91,101 (13,441) 77,660 14,946 (8,489) 6,457 Other 6.6 32,718 (3,830) 28,888 23,321 (1,864) 21,457 Total long-lived intangible assets 2,093,228 (417,559) 1,675,669 1,358,052 (271,720) 1,086,332 Short-lived intangible assets: Apps 0.4 36,908 (33,989) 2,919 29,869 (25,599) 4,270 Total intangible assets $ 2,130,136 $ (451,548) $ 1,678,588 $ 1,387,921 $ (297,319) $ 1,090,602 As of June 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 95,200 $ 44,562 $ 177,385 $ 72,138 Sales and marketing 6,034 2,726 9,243 5,420 Total $ 101,234 $ 47,288 $ 186,628 $ 77,558

Credit Agreement

Credit Agreement	6 Months Ended
	Jun. 30, 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 $400.0 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 $300.0 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 $597.8 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 $298.2 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 $10.0 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 $4.6 million with respect to the Term Loans. In connection with this amendment, the Company paid $0.8 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 basis. For existing creditors who participated in the Fifth Amendment Term Loans, the transaction was accounted for as a debt modification because the present value of the cash flows between the two debt instruments before and after the transaction was less than 10%. For new creditors, the transaction was accounted for as an issuance of new debt. As a result, $2.9 million of the $3.5 million third-party issuance costs related to the modified debt was recorded in other income (expense), net on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2021, with the remaining $0.6 million related to the new debt recorded as a reduction to the carrying amount of the Term Loans. In addition, the Company recorded $5.6 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, comprising of 1) the deferred third-party issuance costs, 2) the bifurcated embedded derivative and 3) the 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 $16.9 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, the Company had an aggregate amount of $400.0 million outstanding under the revolving credit facility, which was repaid in full with the net proceeds from the IPO in April 2021. 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 terms of the Credit Agreement. As a result, the embedded derivative for the contingent interest adjustment feature related to the Term Loans was settled. The Company remeasured the embedded derivative to its fair value of $17.8 million on the settlement date by recording a gain of $1.1 million in other income (expense), net in the Company’s condensed consolidated statements of operations, and then reclassified it to the carrying amount of the Term Loans as an additional debt discount. The new unamortized discount balance is subsequently amortized using the new effective interest rate determined on the settlement date of the embedded derivative. As of June 30, 2021, the Company was in compliance with all of the covenants.

Cash Flow Hedges

Cash Flow Hedges	6 Months Ended
	Jun. 30, 2021
General Discussion of Derivative Instruments and Hedging Activities [Abstract]
Cash Flow Hedges	Cash Flow HedgesThe 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 LIBOR) and pay-fixed (2.9065%) interest rate swap with settlement date commencing on the last calendar day of each month and reset date on first day of each month beginning December 31, 2018. 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 LIBOR over the term of the hedge. Therefore, the effectiveness of the hedge relationship was assessed each quarter by comparing the current terms of the swap and the debt to assure they continued to coincide and through an evaluation of the continued ability of the counterparty to the swap to honor its obligations under the swap. Had the critical terms no longer matched exactly, hedge effectiveness (both prospective and retrospective) would have to be assessed by evaluating the cumulative dollar-offset ratio for the actual derivative and the hedged item.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	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, restricted stock units (RSUs), stock appreciation rights (SARs), performance units, and performance shares to the Company’s employees, directors, and consultants and the Company’s parent and subsidiary companies’ employees and consultants. A total of 39,000,000 shares of the Company’s Class A common stock were reserved for issuance pursuant to the 2021 Plan. The number of shares available for issuance under the 2021 Plan will also include an annual increase on the first day of each fiscal year beginning on January 1, 2021, equal to the least of (a) 39,000,000 shares, (b) five percent (5%) 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. 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. 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 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, RSUs, 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 purchase period with the purchase price of the shares being 85% of the lower of the fair market 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 offering periods, subject to certain rollover mechanism as defined in the ESPP. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with the Company. The initial offering period is from April 15, 2021 through November 19, 2023. 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. 2011 Equity Incentive Plan The Company’s 2011 Equity Incentive Plan (the “2011 Plan”) provides for the grant 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. 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 473 $ 49 $ 582 $ 78 Sales and marketing 2,221 789 4,040 1,241 Research and development 13,573 2,342 20,038 3,869 General and administrative 10,877 1,852 32,443 3,306 Total $ 27,144 $ 5,032 $ 57,103 $ 8,494 For the three and six months ended June 30, 2021, total stock-based compensation expense included $0.3 million and $0.6 million associated with awards that may be settled in stock of one of the Company’s subsidiaries. Early Exercise of Stock Options —The 2011 Plan allowed, subject to the Board's approval for the early exercise of options granted. Under the terms of the 2011 Plan, option holders, upon early exercise, must sign a restricted stock purchase agreement that gives the Company the right to repurchase any unvested shares, at the original exercise price, in the event the optionees’ employment terminates for any reason. The right to exercise options before they are vested does not change existing vesting schedules in any way and the early exercised options may not be sold or transferred before they are vested. The repurchase right lapses over time as the shares vest at the same rate as the original option vesting schedule. The cash amounts received in exchange for these early exercised shares are recorded as a liability on the accompanying balance sheets and reclassified into common stock and additional paid-in-capital as the shares vest. The Company’s right to repurchase these shares lapses by 1/4th of the shares on the one year anniversary of the vesting start date and ratably each month over the next 36 months. The Company has 1,291,975 and 19,800 shares of Class A common stock subject to repurchase as of June 30, 2021 and December 31, 2020, respectively. The liability for the shares of Class A common stock subject to repurchase as of June 30, 2021 and December 31, 2020 was $2.6 million and $0.1 million, respectively, which was included in the accrued liabilities in the Company’s condensed consolidated balance sheets. 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, for accounting purposes, 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 $20.9 million were settled through either share repurchase, in the amount of $17.2 million, or cash payment, in the amount of $3.7 million. In connection with the repurchase of shares, the Company accelerated vesting of 60,968 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 June 30, 2021 and December 31, 2020, the Company had 3,484,999 and 8,022,499 shares of Class A common stock options, respectively, that were exercised via nonrecourse promissory notes, of which 962,502 and 4,136,677 shares, were unvested and subject to repurchase, respectively. The principal balances of nonrecourse promissory notes outstanding amounted to $16.8 million and $40.4 million as of June 30, 2021 and December 31, 2020, respectively.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ 14,423 $ (21,391) $ 3,902 $ (16,727) Less: Income attributable to convertible preferred stock (902) — (731) — Income attributable to options exercised via promissory notes (140) — (55) — Income attributable to unvested early exercised options (61) — (12) — Income attributable to unvested RSA’s (25) — (9) — Net income (loss) attributable to common stock—Basic $ 13,295 $ (21,391) $ 3,095 $ (16,727) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 335,619,207 213,440,147 279,326,624 212,169,247 Net income (loss) per share attributable to common stock—Basic $ 0.04 $ (0.10) $ 0.01 $ (0.08) Diluted EPS Numerator: Net income (loss) attributable to AppLovin $ 14,423 $ (21,391) $ 3,902 $ (16,727) Less: Income attributable to convertible preferred stock (859) — (693) — Income attributable to options exercised via promissory notes (132) — (53) — Income attributable to unvested early exercised options (59) — (11) — Income attributable to unvested RSA’s (24) — (8) — Net income (loss) attributable to common stock—Diluted $ 13,349 $ (21,391) $ 3,137 $ (16,727) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 335,619,207 213,440,147 279,326,624 212,169,247 Weighted-average dilutive stock options, RSUs, warrants and other convertible securities 18,238,607 — 19,179,641 — Weighted-average shares used in computing net income (loss) per share—Diluted 353,857,814 213,440,147 298,506,265 212,169,247 Net income (loss) per share attributable to common stock—Diluted $ 0.04 $ (0.10) $ 0.01 $ (0.08) The following table presents the forms of antidilutive potential common shares: As of June 30, 2021 2020 Convertible preferred stock — 109,090,908 Stock options exercised for promissory notes 3,484,999 5,709,999 Shares issuable upon conversion of Athena convertible security 616,003 — Early exercised stock options 1,291,975 6,789 Unvested RSAs 512,613 2,580,582 Stock options 35,250 23,154,934 ESPP 226,156 — Total antidilutive potential common shares 6,166,996 140,543,212

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	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 income and record the discrete tax items in the period to which they relate. In each quarter, the Company updates its estimated annual effective tax rate and makes a year-to-date adjustment to its tax provision as necessary. The Company’s calendar year 2021 annual effective tax rate differs from the U.S. statutory rate primarily due to net excess tax benefits from stock-based compensation, foreign derived intangible income deduction, valuation allowance against losses which cannot be realized and the foreign tax rate differential. 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 six months ended June 30, 2021. During the six months ended June 30, 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.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions On February 12, 2021, the Company entered into certain amendment to the Credit Agreement. See Note 8. In connection with this amendment, the Company paid $0.8 million in fees to KKR Capital Markets LLC, which is affiliated with KKR Denali, one of the Company’s principal stockholders. 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, the Company had an aggregate amount of $400.0 million outstanding under the revolving credit facility, which was repaid in full with the net proceeds from the IPO in April 2021. See Note 8. On May 6, 2020, the Company entered into certain amendment to the Credit Agreement. See Note 8. In connection with this amendment, the Company paid $1.5 million in fees to KKR Capital Markets LLC, which is affiliated with KKR Denali, one of the Company’s principal stockholders.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn August 2021, the Company granted 800,201 RSUs to certain employees under the 2021 Plan. In addition, the Company also granted 356,300 RSUs under the 2021 Partner Plan. The RSUs generally vest over an approximate period of four

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 purchases (“IAPs”) made by users within Apps. 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. Such payments are initially recorded to deferred revenue. 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 basis. For a newly launched game that has limited playing data, the Company determines its EAUL based on the EAUL of a game that has sufficiently similar characteristics. The Company determines the EAUL on a quarterly basis and applies such calculated EAUL to all bookings in the respective quarter. Determining the EAUL is subjective and requires management’s judgment. Future playing patterns may differ from historical playing patterns, and therefore the EAUL may change in the future. The EAULs are generally between six 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, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion feature and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and simplifies classification of debt on the balance sheet and earnings per share calculation. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes. In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Option. The ASU requires the issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the guidance, an issuer determines the accounting for the modification or exchange based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes. Recent Accounting Pronouncements (Issued and Adopted) In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The ASU impacts various topic areas within ASC 740, including accounting for taxes under hybrid tax regimes, accounting for increases in goodwill, allocation of tax amounts to separate company financial statements within a group that files a consolidated tax return, intra period tax allocation, interim period accounting, and accounting for ownership changes in investments, among other minor codification improvements. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption. In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Summary of Revenue Disaggregated by Type	The following table presents revenue disaggregated by type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Business Revenue - Apps $ 162,223 $ 95,583 $ 319,186 $ 195,332 Business Revenue - Software Platform 145,664 40,909 234,083 87,421 Total Business Revenue 307,887 136,492 553,269 282,753 Consumer Revenue 360,919 162,839 719,414 276,756 Total Revenue $ 668,806 $ 299,331 $ 1,272,683 $ 559,509
Summary of Revenue Disaggregated by Geography	Revenue disaggregated by geography, based on user location, consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 United States $ 406,179 $ 189,812 $ 772,345 $ 351,900 Rest of the World 262,627 109,519 500,338 207,609 Total Revenue $ 668,806 $ 299,331 $ 1,272,683 $ 559,509

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Summary of Financial Instruments Measured at Fair Value	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 June 30, 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 4,715 4,715 Total financial assets $ 5,192 $ 5,192 $ — $ — Financial Liability: Convertible security Deferred acquisition costs, current $ 49,000 $ — $ — $ 49,000 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 Financial Assets and Liabilities Measured at Fair Value	The following table presents a reconciliation of the Company’s financial asset and liability measured at fair value as of June 30, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands): Embedded Convertible 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 7,640 2,500 Settlement (17,820) — Balance as of June 30, 2021 $ — $ 49,000

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 12,155 Accounts receivable and other current assets 21,840 Intangible assets Customer Relationships—estimated useful life of 12 years 155,000 Developed Technology—estimated useful life of 6 years 77,000 Tradename—estimated useful life of 5 years 8,000 Goodwill 776,147 Operating lease right-of-use assets 8,130 Property and equipment, net 1,897 Finance lease right-of-use assets 43,156 Other assets 3,191 Accounts payable, accrued liabilities and other current liabilities (15,540) Deferred revenue (5,600) Operating lease liabilities (8,130) Finance lease liabilities (43,156) Deferred income tax liability (66,273) Total purchase consideration $ 967,817 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 following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): Cash $ 2,787 Accounts receivable, net 1,850 Intangible assets Apps—estimated useful life of 5 years 44,000 Tradename—estimated useful life of 5 years 900 Goodwill 20,198 Other tangible assets 131 Accounts payable (2,492) Other liabilities (11,142) Total valuation 56,232 Redeemable noncontrolling interest (2,556) Total purchase consideration $ 53,676 The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands): Cash $ 37,767 Accounts receivable and other current assets 27,284 Intangible assets Tradename—estimated useful life of 10 years 13,000 Apps—estimated useful life of 3—5 years 272,000 IP license—useful life of 2 years 28,551 Goodwill 82,353 Right-of-use assets under operating leases 125,639 Property, equipment and other tangible assets 42,312 Accounts payable, accrued liabilities and other liabilities (81,591) Deferred revenue (43,200) License obligation (35,685) Operating lease liabilities (139,875) Total purchase consideration $ 328,555
Supplemental Pro Forma Information	The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Machine Zone and Adjust for each of the periods presented as if Adjust had been acquired as of January 1, 2020 and Machine Zone had been acquired as of January 1, 2019 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Revenue $ 675,869 $ 373,228 $ 1,307,276 $ 727,082 Net income (loss) 23,675 (74,755) 4,014 (176,626) The unaudited supplemental pro forma information above include the following adjustments to net income (loss) in the appropriate pro forma periods (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results $ (1,519) $ (14,707) $ (7,325) $ (36,124) A net increase in revenue related to fair value adjustment 538 9,724 538 9,043 A decrease (increase) in expenses related to transaction expenses 12,903 9,484 14,115 (2,617) An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions (1,350) 33,650 (2,640) 99,759 A (decrease) in other income - liability classified warrants — — — (1,730) An (increase) in tax provision (2,425) (8,752) (1,075) (15,675)

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill Activity	The following table presents goodwill activity (in thousands): December 31, 2020 $ 249,773 Goodwill acquired 776,147 Foreign currency translation (9,846) June 30, 2021 $ 1,016,074
Summary of Intangible Assets Acquired, Net	Intangible assets, net consisted of the following (in thousands): Weighted- As of June 30, 2021 As of December 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 5.3 $ 1,718,938 $ (355,652) $ 1,363,286 $ 1,222,417 $ (232,832) $ 989,585 Customer Relationships 11.8 153,103 (2,481) 150,622 — — — User base 4.8 68,817 (22,493) 46,324 68,817 (17,617) 51,200 License asset 0.4 28,551 (19,662) 8,889 28,551 (10,918) 17,633 Developed technology 5.6 91,101 (13,441) 77,660 14,946 (8,489) 6,457 Other 6.6 32,718 (3,830) 28,888 23,321 (1,864) 21,457 Total long-lived intangible assets 2,093,228 (417,559) 1,675,669 1,358,052 (271,720) 1,086,332 Short-lived intangible assets: Apps 0.4 36,908 (33,989) 2,919 29,869 (25,599) 4,270 Total intangible assets $ 2,130,136 $ (451,548) $ 1,678,588 $ 1,387,921 $ (297,319) $ 1,090,602
Summary of Finite-Lived Intangible Assets, Amortization Expenses	The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 95,200 $ 44,562 $ 177,385 $ 72,138 Sales and marketing 6,034 2,726 9,243 5,420 Total $ 101,234 $ 47,288 $ 186,628 $ 77,558

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of Stock-based Payment Arrangement Expenses	The Company recognized stock-based compensation expense for the periods indicated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 473 $ 49 $ 582 $ 78 Sales and marketing 2,221 789 4,040 1,241 Research and development 13,573 2,342 20,038 3,869 General and administrative 10,877 1,852 32,443 3,306 Total $ 27,144 $ 5,032 $ 57,103 $ 8,494

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ 14,423 $ (21,391) $ 3,902 $ (16,727) Less: Income attributable to convertible preferred stock (902) — (731) — Income attributable to options exercised via promissory notes (140) — (55) — Income attributable to unvested early exercised options (61) — (12) — Income attributable to unvested RSA’s (25) — (9) — Net income (loss) attributable to common stock—Basic $ 13,295 $ (21,391) $ 3,095 $ (16,727) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 335,619,207 213,440,147 279,326,624 212,169,247 Net income (loss) per share attributable to common stock—Basic $ 0.04 $ (0.10) $ 0.01 $ (0.08) Diluted EPS Numerator: Net income (loss) attributable to AppLovin $ 14,423 $ (21,391) $ 3,902 $ (16,727) Less: Income attributable to convertible preferred stock (859) — (693) — Income attributable to options exercised via promissory notes (132) — (53) — Income attributable to unvested early exercised options (59) — (11) — Income attributable to unvested RSA’s (24) — (8) — Net income (loss) attributable to common stock—Diluted $ 13,349 $ (21,391) $ 3,137 $ (16,727) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 335,619,207 213,440,147 279,326,624 212,169,247 Weighted-average dilutive stock options, RSUs, warrants and other convertible securities 18,238,607 — 19,179,641 — Weighted-average shares used in computing net income (loss) per share—Diluted 353,857,814 213,440,147 298,506,265 212,169,247 Net income (loss) per share attributable to common stock—Diluted $ 0.04 $ (0.10) $ 0.01 $ (0.08)
Summary of Antidilutive Potential Common Shares	The following table presents the forms of antidilutive potential common shares: As of June 30, 2021 2020 Convertible preferred stock — 109,090,908 Stock options exercised for promissory notes 3,484,999 5,709,999 Shares issuable upon conversion of Athena convertible security 616,003 — Early exercised stock options 1,291,975 6,789 Unvested RSAs 512,613 2,580,582 Stock options 35,250 23,154,934 ESPP 226,156 — Total antidilutive potential common shares 6,166,996 140,543,212

Description of Business and P_2

Description of Business and Principles of Consolidation (Details) $ / shares in Units, $ in Millions	Apr. 30, 2021USD ($)	Apr. 19, 2021USD ($)$ / sharesshares	Jun. 30, 2021transactionvoteshares	Dec. 31, 2020shares
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)			1,700,000,000	429,600,000
Preferred stock, shares authorized (in shares)			100,000,000	109,090,908
Preferred stock shares converted into equity (in shares)		0
Common stock, shares issued (in shares)			372,165,319	226,364,401
Common stock, shares outstanding (in shares)			372,165,319	226,364,401
Shares issued for each share converted (in shares)			1
Minimum
Organization Consolidation and Presentation of Financial Statements [Line Items]
Conversion period			61 days
Maximum
Organization Consolidation and Presentation of Financial Statements [Line Items]
Conversion period			180 days
KKR Denali Holdings L P
Organization Consolidation and Presentation of Financial Statements [Line Items]
Repayment of revolving credit facility | $	$ 400
Class A Common Stock
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)			1,500,000,000	386,400,000
Common stock, shares issued (in shares)			224,357,697	183,800,251
Common stock, shares outstanding (in shares)			224,357,697	183,800,251
Votes for each warrant or right | vote			1
Class A Common Stock | Restated Certificate of Incorporation
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)		1,500,000,000
Class A Common Stock | Conversion of Class A Common Stock into Class B Common Stock | KKR Denali
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock converted from one class to another (in shares)		150,307,622
Class A Common Stock | Conversion of Class A Common Stock into Class B Common Stock | Adam Foroughi
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock converted from one class to another (in shares)		150,307,622
Class A Common Stock | Conversion of Class A Common Stock into Class B Common Stock | Herald Chen
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock converted from one class to another (in shares)		150,307,622
Class B Common Stock
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)			200,000,000	0
Common stock, shares issued (in shares)			147,807,622	0
Common stock, shares outstanding (in shares)			147,807,622	0
Votes for each warrant or right | transaction			20
Class B Common Stock | Restated Certificate of Incorporation
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)		200,000,000
Class C Common Stock
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares issued (in shares)		0
Common stock, shares outstanding (in shares)		0
Class C Common Stock | Restated Certificate of Incorporation
Organization Consolidation and Presentation of Financial Statements [Line Items]
Common stock, shares authorized (in shares)		150,000,000
Preferred Stock | Restated Certificate of Incorporation
Organization Consolidation and Presentation of Financial Statements [Line Items]
Preferred stock, shares authorized (in shares)		100,000,000
IPO
Organization Consolidation and Presentation of Financial Statements [Line Items]
Issuance of common stock (in shares)		22,500,000
Sale of stock issue price (in dollars per share) | $ / shares		$ 80
Sale of stock net consideration received on the transaction | $		$ 1,750
Underwriting discounts and commissions | $		47.2
Offering expenses | $		$ 7.9

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - Durable Virtual Goods	6 Months Ended
	Jun. 30, 2021
Minimum
Product Information [Line Items]
Estimated average user life	6 months
Maximum
Product Information [Line Items]
Estimated average user life	9 months

Revenue - Summary of Revenue Di

Revenue - Summary of Revenue Disaggregated by Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from External Customer [Line Items]
Revenue	$ 668,806	$ 299,331	$ 1,272,683	$ 559,509
Business Revenue - Apps
Revenue from External Customer [Line Items]
Revenue	162,223	95,583	319,186	195,332
Business Revenue - Software Platform
Revenue from External Customer [Line Items]
Revenue	145,664	40,909	234,083	87,421
Total Business Revenue
Revenue from External Customer [Line Items]
Revenue	307,887	136,492	553,269	282,753
Consumer Revenue
Revenue from External Customer [Line Items]
Revenue	$ 360,919	$ 162,839	$ 719,414	$ 276,756

Revenue - Summary of Revenue _2

Revenue - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 668,806	$ 299,331	$ 1,272,683	$ 559,509
United States
Disaggregation of Revenue [Line Items]
Revenue	406,179	189,812	772,345	351,900
Rest of the World
Disaggregation of Revenue [Line Items]
Revenue	$ 262,627	$ 109,519	$ 500,338	$ 207,609

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 59.5	$ 8	$ 81.4	$ 8.2

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Balance Sheet Location	Deferred acquisition costs, current	Deferred acquisition costs, current
Financial Assets	$ 5,192	$ 12,093
Convertible security	$ 49,000	$ 46,500
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Balance Sheet Location	Cash and cash equivalents	Cash and cash equivalents
Financial Assets	$ 477	$ 6,413
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Balance Sheet Location	Prepaid expenses and other current assets
Financial Assets	$ 4,715
Embedded derivative
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Balance Sheet Location		Long-term debt
Financial Assets		$ 5,680
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	5,192	6,413
Convertible security	0	0
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	477	6,413
Level 1 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	4,715
Level 1 | Embedded derivative
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	0	0
Convertible security	0	0
Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	0	0
Level 2 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets
Level 2 | Embedded derivative
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	0	5,680
Convertible security	49,000	46,500
Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets	0	0
Level 3 | Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets
Level 3 | Embedded derivative
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Financial Assets		$ 5,680

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	Apr. 16, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Feb. 28, 2021
Fair Value by Fair Value Hierarchy Level [Line Items]
Gain (loss) due to change in the fair value, included in earnings		$ 1,100,000	$ 0	$ 7,600,000	$ 0
Embedded derivative	$ 17,800,000					$ 5,600,000
Amended Revolving Credit Facility | Affiliate Of KKR Denali
Fair Value by Fair Value Hierarchy Level [Line Items]
Decrease in the variable interest rate margin	0.25%
Fair Value, Inputs, Level 1
Fair Value by Fair Value Hierarchy Level [Line Items]
Unrealized gain (loss) due to change in fair value of marketable securities		(600,000)		$ 4,700,000
Convertible security
Fair Value by Fair Value Hierarchy Level [Line Items]
Gain (loss) due to change in the fair value, included in earnings		$ (1,800,000)

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Reconciliation of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Convertible Security
Change in fair value recognized in earnings	$ 1,100,000	$ 0	$ 7,600,000	$ 0
Embedded derivative | Level 3
Embedded Derivative
Balance at beginning of period			5,680,000
Addition related to the issuance of term loans in February 2021			5,630,000
Extinguishment of term loans in February 2021			(1,130,000)
Change in fair value recognized in earnings			7,640,000
Settlement			(17,820,000)
Balance at end of period	0		0
Convertible security
Convertible Security
Change in fair value recognized in earnings	(1,800,000)
Convertible security | Level 3
Convertible Security
Balance at beginning of period			46,500,000
Addition related to the issuance of term loans in February 2021			0
Extinguishment of term loans in February 2021			0
Change in fair value recognized in earnings			2,500,000
Settlement			0
Balance at end of period	$ 49,000,000		$ 49,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2021	May 31, 2021	May 30, 2021	Dec. 31, 2020
Other Commitments [Line Items]
Contractual obligation amount			$ 130
Amended contractual obligation amount		$ 300
Standby Letters of Credit
Other Commitments [Line Items]
Letters of credit outstanding	$ 11.1			$ 11.1

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Thousands

Apr. 20, 2021USD ($)

May 19, 2020USD ($)lease

Apr. 06, 2020USD ($)

Jan. 31, 2020USD ($)

Jun. 30, 2021USD ($)

May 31, 2021shares

Apr. 30, 2021USD ($)transaction

Feb. 28, 2021USD ($)

Jan. 31, 2021USD ($)

Nov. 30, 2020USD ($)

Jun. 30, 2020USD ($)

Jun. 30, 2020USD ($)

Jun. 30, 2021USD ($)

Apr. 30, 2020USD ($)developerapptransaction

Jun. 30, 2021USD ($)

Jun. 30, 2020USD ($)

Jun. 30, 2021USD ($)

Jun. 30, 2020USD ($)

Business Acquisition [Line Items]

Business combination, equity interests issued and issuable

$ 0

$ 38,167

Consideration transferred, liabilities incurred

342,170

0

Transactions | transaction

2

Payments for asset acquisitions

$ 35,000

Asset acquisition, consideration transferred

$ 35,000

Development services agreement, term

2 years

Asset acquisition, earn-out term

4 years

Contingent consideration, costs

$ 7,800

$ 13,700

Annual earn-out payment period

4 years

Apps acquired | app

2

Game developers | developer

2

Development services agreement, renewal, term

2 years

Asset acquisition, baseline revenue, cumulative amount (up to)

$ 45,000

Exit Of Machine Zone Real Estate Leases

Business Acquisition [Line Items]

Number of businesses exited | lease

1

Increase (decrease) in operating lease, right-of-use asset

$ 57,600

Increase (decrease) in operating lease, liability

63,100

Leasehold improvements, write off

15,000

Adjustments to additional paid in capital, warrants issued

400

Adjust GmbH

Business Acquisition [Line Items]

Consideration transferred

$ 967,800

Consideration transferred, liabilities incurred

342,200

Consideration paid

578,000

Liabilities incurred, cash holdback

47,600

Transaction costs

3,100

Expected tax deductible amount for goodwill

692,500

Revenue of acquiree since acquisition date

$ 21,600

Earnings (loss) of acquiree since acquisition date

$ (19,200)

Conversion of stock (in shares) | shares

6,320,688

Total purchase consideration

967,817

Adjust GmbH | Reported Value Measurement

Business Acquisition [Line Items]

Consideration transferred

980,000

Business combination, equity interests issued and issuable

352,000

Consideration transferred, liabilities incurred

$ 50,000

Certain Mobile Game Apps

Business Acquisition [Line Items]

Transactions | transaction

2

Payments for asset acquisitions

$ 130,000

$ 300,000

$ 8,000

8,000

Asset acquisition, transaction cost

4,000

6,000

Asset acquisition, consideration transferred

$ 134,000

$ 306,000

Acquired asset, amortization period

9 years

8 years

Development services agreement, term

4 years

4 years

Asset acquisition, earn-out term

4 years

Asset acquisition, earn-out payment

$ 50,000

Contingent consideration, costs

51,800

87,600

2020 Asset Acquisition

Business Acquisition [Line Items]

Contingent consideration, costs

$ 40,700

$ 67,900

2020 Mobile App Acquisition

Business Acquisition [Line Items]

Payments for asset acquisitions

$ 60,000

2019 Asset Acquisition

Business Acquisition [Line Items]

Payments for asset acquisitions

$ 90,000

Geewa A S

Business Acquisition [Line Items]

Consideration transferred

$ 25,600

Consideration paid

23,500

Consideration indemnity holdback

2,100

Business combination acquisition related costs

300

Total purchase consideration

$ 25,629

Redemption Games

Business Acquisition [Line Items]

Consideration transferred

$ 53,700

Transaction costs

$ 600

Percentage of voting interests acquired

95.50%

Total purchase consideration

$ 56,232

Business combination, ownership interest

0.982

Fair value of minority shares

$ 2,556

Redemption Games | Convertible Securities Convertible Into Class A Common Stock

Business Acquisition [Line Items]

Business combination, exchange of minority shares

0.027

Redemption Games | Class A Common Stock

Business Acquisition [Line Items]

Business combination, equity interests issued and issuable

$ 4,500

Redemption Games | Minority Shares

Business Acquisition [Line Items]

Fair value of minority shares

$ 1,500

Machine Zone

Business Acquisition [Line Items]

Consideration transferred

328,600

Business combination, equity interests issued and issuable

38,200

Consideration paid

287,100

Transaction costs

2,800

Revenue of acquiree since acquisition date

$ 17,800

Earnings (loss) of acquiree since acquisition date

$ 32,200

Total purchase consideration

328,555

Business combination, settlement of receivables

3,300

Machine Zone | IP License

Business Acquisition [Line Items]

Business combination, remaining future fixed payments

$ 37,100

Zenlife

Business Acquisition [Line Items]

Payments for asset acquisitions

$ 160,000

Asset acquisition, consideration transferred

$ 173,300

Acquired asset, amortization period

5 years

Development services agreement, term

4 years

Asset acquisition, deferred tax liability

$ 13,300

Mobile App One

Business Acquisition [Line Items]

Acquired asset, amortization period

3 years

Mobile App Two

Business Acquisition [Line Items]

Acquired asset, amortization period

5 years

Acquisitions - Summary of the F

Acquisitions - Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 20, 2021	May 19, 2020	Apr. 06, 2020	Jan. 31, 2020	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill					$ 1,016,074	$ 249,773
Adjust GmbH
Business Acquisition [Line Items]
Cash and cash equivalents	$ 12,155
Accounts receivable and other current assets	21,840
Goodwill	776,147
Operating lease right-of-use assets	8,130
Property, equipment and other tangible assets	1,897
Finance lease right-of-use assets	43,156
Other assets	3,191
Accounts payable, accrued liabilities and other liabilities	(15,540)
Deferred revenue	(5,600)
Operating lease liabilities	(8,130)
Finance lease liabilities	(43,156)
Deferred income tax liability	(66,273)
Total purchase consideration	967,817
Adjust GmbH | Customer Relationships
Business Acquisition [Line Items]
Intangible assets	$ 155,000
Estimated useful life	12 years
Adjust GmbH | Developed Technology
Business Acquisition [Line Items]
Intangible assets	$ 77,000
Estimated useful life	6 years
Adjust GmbH | Tradename
Business Acquisition [Line Items]
Intangible assets	$ 8,000
Estimated useful life	5 years
Geewa A S
Business Acquisition [Line Items]
Cash and cash equivalents				$ 1,043
Accounts receivable and other current assets				1,457
Goodwill				9,805
Property, equipment and other tangible assets				369
Accounts payable, accrued liabilities and other liabilities				(4,935)
Total purchase consideration				25,629
Geewa A S | Developed Technology
Business Acquisition [Line Items]
Intangible assets				$ 590
Estimated useful life				2 years
Geewa A S | Tradename
Business Acquisition [Line Items]
Intangible assets				$ 260
Estimated useful life				5 years
Geewa A S | Apps
Business Acquisition [Line Items]
Intangible assets				$ 17,040
Estimated useful life				5 years
Redemption Games
Business Acquisition [Line Items]
Cash and cash equivalents			$ 2,787
Accounts receivable and other current assets			1,850
Goodwill			20,198
Accounts payable			(2,492)
Other liabilities			(11,142)
Total purchase consideration			56,232
Redeemable noncontrolling interest			(2,556)
Total purchase consideration, net			53,676
Redemption Games | Tradename
Business Acquisition [Line Items]
Intangible assets			$ 900
Estimated useful life			5 years
Redemption Games | Other tangible assets
Business Acquisition [Line Items]
Intangible assets			$ 131
Redemption Games | Apps
Business Acquisition [Line Items]
Intangible assets			$ 44,000
Estimated useful life			5 years
Machine Zone
Business Acquisition [Line Items]
Cash and cash equivalents		$ 37,767
Accounts receivable and other current assets		27,284
Goodwill		82,353
Operating lease right-of-use assets		125,639
Property, equipment and other tangible assets		42,312
Accounts payable, accrued liabilities and other liabilities		(81,591)
Deferred revenue		(43,200)
License obligation		(35,685)
Operating lease liabilities		(139,875)
Total purchase consideration		328,555
Machine Zone | Tradename
Business Acquisition [Line Items]
Intangible assets		$ 13,000
Estimated useful life		10 years
Machine Zone | Apps
Business Acquisition [Line Items]
Intangible assets		$ 272,000
Machine Zone | Apps | Minimum
Business Acquisition [Line Items]
Estimated useful life		3 years
Machine Zone | Apps | Maximum
Business Acquisition [Line Items]
Estimated useful life		5 years
Machine Zone | IP License
Business Acquisition [Line Items]
Intangible assets		$ 28,551
Estimated useful life		2 years

Acquisitions - Supplemental Pro

Acquisitions - Supplemental Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 675,869	$ 373,228	$ 1,307,276	$ 727,082
Net income (loss)	$ 23,675	$ (74,755)	$ 4,014	$ (176,626)

Acquisitions - Pro Forma Adjust

Acquisitions - Pro Forma Adjustments to Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	$ 14,364	$ (21,711)	$ 3,789	$ (17,047)
An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	(1,519)	(14,707)	(7,325)	(36,124)
A net increase in revenue related to fair value adjustment
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	538	9,724	538	9,043
A decrease (increase) in expenses related to transaction expenses
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	12,903	9,484	14,115	(2,617)
An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	(1,350)	33,650	(2,640)	99,759
A (decrease) in other income - liability classified warrants
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	0	0	0	(1,730)
An (increase) in tax provision
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	$ (2,425)	$ (8,752)	$ (1,075)	$ (15,675)

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Summary of Goodwill Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 249,773
Goodwill acquired	776,147
Foreign currency translation	(9,846)
Balance at end of period	$ 1,016,074

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Summary of Intangible Assets Acquired, Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Net Book Value	$ 1,675,669	$ 1,086,332
Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	2,093,228	1,358,052
Accumulated Amortization	(417,559)	(271,720)
Net Book Value	1,675,669	1,086,332
Total intangible assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	2,130,136	1,387,921
Accumulated Amortization	(451,548)	(297,319)
Net Book Value	$ 1,678,588	1,090,602
Apps | Short-Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	4 months 24 days
Gross Carrying Value	$ 36,908	29,869
Accumulated Amortization	(33,989)	(25,599)
Net Book Value	$ 2,919	4,270
Apps | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	5 years 3 months 18 days
Gross Carrying Value	$ 1,718,938	1,222,417
Accumulated Amortization	(355,652)	(232,832)
Net Book Value	$ 1,363,286	989,585
Customer Relationships | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	11 years 9 months 18 days
Gross Carrying Value	$ 153,103	0
Accumulated Amortization	(2,481)	0
Net Book Value	$ 150,622	0
User base | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	4 years 9 months 18 days
Gross Carrying Value	$ 68,817	68,817
Accumulated Amortization	(22,493)	(17,617)
Net Book Value	$ 46,324	51,200
License asset | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	4 months 24 days
Gross Carrying Value	$ 28,551	28,551
Accumulated Amortization	(19,662)	(10,918)
Net Book Value	$ 8,889	17,633
Developed technology | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	5 years 7 months 6 days
Gross Carrying Value	$ 91,101	14,946
Accumulated Amortization	(13,441)	(8,489)
Net Book Value	$ 77,660	6,457
Other | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	6 years 7 months 6 days
Gross Carrying Value	$ 32,718	23,321
Accumulated Amortization	(3,830)	(1,864)
Net Book Value	$ 28,888	$ 21,457

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net - Summary of Finite-Lived Intangible Assets, Amortization Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 101,234	$ 47,288	$ 186,628	$ 77,558
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	95,200	44,562	177,385	72,138
Sales and marketing
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,034	$ 2,726	$ 9,243	$ 5,420

Credit Agreement (Details)

Credit Agreement (Details) - USD ($)

Apr. 16, 2021

Mar. 31, 2021

Feb. 12, 2021

Jun. 30, 2021

Mar. 31, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Feb. 28, 2021

Nov. 30, 2020

Oct. 27, 2020

May 06, 2020

Apr. 23, 2019

Aug. 15, 2018

Debt Instrument [Line Items]

Quarterly repayments

$ 4,600,000

Embedded derivative

$ 17,800,000

$ 5,600,000

Loss on settlement of debt

$ 16,852,000

$ 0

Line of credit non current outstanding

$ 400,000,000

$ 400,000,000

Change in fair value recognized in earnings

$ 1,100,000

$ 0

$ 7,600,000

$ 0

Closing Term Loans

Debt Instrument [Line Items]

New term loan

$ 400,000,000

$ 820,000,000

Amended Revolving Credit Facility

Debt Instrument [Line Items]

Lender commitment under the line of credit

10,000,000

$ 540,000,000

$ 50,000,000

Debt instrument increase in the credit facility

$ 150,000,000

Proceeds from long term line of credit facility

250,000,000

Line of credit facility maximum borrowing capacity

600,000,000

600,000,000

Amended Revolving Credit Facility | Affiliate Of KKR Denali

Debt Instrument [Line Items]

Proceeds from long term line of credit facility

250,000,000

Line of credit facility maximum borrowing capacity

$ 600,000,000

600,000,000

Decrease in the variable interest rate margin

0.25%

Third Amendment Term Loans

Debt Instrument [Line Items]

New term loan

$ 300,000,000

Repayment of long term debt

298,200,000

Fifth Amendment Term Loan

Debt Instrument [Line Items]

New term loan

$ 597,800,000

Percentage change of present value of cash flow between the original and modified debt

10.00%

Third party debt issuance costs that were expensed immediately

2,900,000

Debt issuance costs

$ 3,500,000

Debt issuance costs, gross

600,000

Loss on settlement of debt

$ 16,900,000

Fifth Amendment Term Loan | Contingent Interest Adjustment Feature

Debt Instrument [Line Items]

Embedded derivative

5,600,000

Fifth Amendment Term Loan And Revolving Credit Facility

Debt Instrument [Line Items]

Debt issuance costs paid to related party

$ 800,000

Cash Flow Hedges (Details)

Cash Flow Hedges (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Nov. 14, 2018
Cash Flow Hedges
Settlement value of interest rate swap liability before tax	$ 5.7	$ 5.7
Receive Variable Pay Fixed Rate | Interest Rate Swap
Cash Flow Hedges
Interest rate swap notional amount			$ 410
Derivatives interest rate swap fixed interest rate			(2.9065%)
Derivative hedges realized gain loss	$ 2.5	$ 3.8

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2021	Feb. 28, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense			$ 27,144	$ 5,032	$ 57,103	$ 8,494
Percentage of unvested options accelerated upon the occurrence of a qualified event					25.00%
Liabilities related to exercised options subject to repurchase					$ 2,600		$ 100
Employee promissory note settled in shares		$ 17,200
Employee promissory note settled in cash		3,700
Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of shares stock option (in shares)	6,038,514
Restricted stock units granted (in dollars per share)	$ 58.55
Promissory Notes
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Employee promissory note settled		$ 20,900
Employee promissory note outstanding			$ 16,800		$ 16,800		$ 40,400
Tranche One
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Exercised options, right to repurchase, term					1 year
Tranche Two
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Exercised options, right to repurchase, term					36 months
Minimum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Restricted stock unit, granted, vesting period	4 years
Maximum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Restricted stock unit, granted, vesting period	5 years
Class A Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of shares recognized cost (in shares)		60,968
Number of share options exercised (in shares)			3,484,999		3,484,999		8,022,499
Class A Common Stock | Promissory Notes
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Early exercised options with promissory note (in shares)					962,502		4,136,677
Class A Common Stock | Equity Option
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Exercised options subject to repurchase (in shares)					1,291,975		19,800
2021 Equity Incentive Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Capital shares reserved for future issuance (in shares)			39,000,000		39,000,000
Share based compensation by share based payment arrangement increase in the number of shares available for future issuance (in shares)					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%
2021 Partner Studio Incentive Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Capital shares reserved for future issuance (in shares)			390,000		390,000
Employee Stock Purchase Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					24 months
Employee Stock Purchase Plan | Class A Common Stock
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%		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 (in shares)					590
Share based compensation by share based payment arrangement number of shares available for issuance (in shares)			7,800,000		7,800,000
Share based compensation by share based payment arrangement number of additional shares available for issuance (in shares)					7,800,000
2011 Equity Incentive Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense			$ 300		$ 600

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock-based Payment Arrangement Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 27,144	$ 5,032	$ 57,103	$ 8,494
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	473	49	582	78
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,221	789	4,040	1,241
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	13,573	2,342	20,038	3,869
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 10,877	$ 1,852	$ 32,443	$ 3,306

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 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income (loss) attributable to AppLovin	$ 14,423	$ (10,521)	$ (21,391)	$ 4,664	$ 3,902	$ (16,727)
Income attributable to convertible preferred stock	(902)		0		(731)	0
Income attributable to options exercised via promissory notes	(140)		0		(55)	0
Income attributable to unvested early exercised options	(61)		0		(12)	0
Income attributable to unvested RSA’s	(25)		0		(9)	0
Net income (loss) attributable to common stock—Basic	$ 13,295		$ (21,391)		$ 3,095	$ (16,727)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic (in shares)	335,619,207		213,440,147		279,326,624	212,169,247
Net income (loss) per share attributable to common stock—Basic (in dollars per share)	$ 0.04		$ (0.10)		$ 0.01	$ (0.08)
Numerator:
Net income (loss) attributable to AppLovin	$ 14,423	$ (10,521)	$ (21,391)	$ 4,664	$ 3,902	$ (16,727)
Income attributable to convertible preferred stock	(859)		0		(693)	0
Income attributable to options exercised via promissory notes	(132)		0		(53)	0
Income attributable to unvested early exercised options	(59)		0		(11)	0
Income attributable to unvested RSA’s	(24)		0		(8)	0
Net income (loss) attributable to common stock—Diluted	$ 13,349		$ (21,391)		$ 3,137	$ (16,727)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic (in shares)	335,619,207		213,440,147		279,326,624	212,169,247
Weighted-average dilutive stock options (in shares)	18,238,607		0		19,179,641	0
Weighted-average shares used in computing net income (loss) per share—Diluted (in shares)	353,857,814		213,440,147		298,506,265	212,169,247
Net income (loss) per share attributable to common stock—Diluted (in dollars per share)	$ 0.04		$ (0.10)		$ 0.01	$ (0.08)

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Summary of Antidilutive Potential Common Shares (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	6,166,996	140,543,212
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	0	109,090,908
Stock options exercised for promissory notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	3,484,999	5,709,999
Shares issuable upon conversion of Athena convertible security
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	616,003	0
Early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	1,291,975	6,789
Unvested RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	512,613	2,580,582
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	35,250	23,154,934
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	226,156	0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Mar. 31, 2021	Feb. 12, 2021	May 06, 2020
Related Party Transaction [Line Items]
Line of credit non current outstanding	$ 400,000,000
Affiliated Entity | KKR Capital Markets, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party			$ 1,500,000
Fifth Amendment Term Loan And Revolving Credit Facility
Related Party Transaction [Line Items]
Debt issuance costs paid to related party		$ 800,000
Amended Revolving Credit Facility
Related Party Transaction [Line Items]
Proceeds from long term line of credit facility	250,000,000
Line of credit facility maximum borrowing capacity	$ 600,000,000

Subsequent Events (Details)

Subsequent Events (Details) - Restricted Stock Units (RSUs) - $ / shares	1 Months Ended
	Aug. 31, 2021	May 31, 2021
Subsequent Event [Line Items]
Restricted stock units granted (in shares)		6,038,514
Restricted stock units granted (in dollars per share)		$ 58.55
Minimum
Subsequent Event [Line Items]
Restricted stock unit, granted, vesting period		4 years
Maximum
Subsequent Event [Line Items]
Restricted stock unit, granted, vesting period		5 years
Subsequent Event
Subsequent Event [Line Items]
Restricted stock units granted (in dollars per share)	$ 57.19
Subsequent Event | Certain Employees
Subsequent Event [Line Items]
Restricted stock units granted (in shares)	800,201
Subsequent Event | Partner Plan
Subsequent Event [Line Items]
Restricted stock units granted (in shares)	356,300
Subsequent Event | Minimum
Subsequent Event [Line Items]
Restricted stock unit, granted, vesting period	4 years
Subsequent Event | Maximum
Subsequent Event [Line Items]
Restricted stock unit, granted, vesting period	5 years