AppLovin (APP) 10-Q 12 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	2022
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		291,939,038
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		78,662,622

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 951,560	$ 1,520,504
Restricted cash equivalents	0	1,050,000
Accounts receivable, net	690,911	514,520
Prepaid expenses and other current assets	174,826	150,040
Total current assets	1,817,297	3,235,064
Property and equipment, net	62,431	63,608
Operating lease right-of-use assets	61,127	70,975
Goodwill	1,803,167	966,427
Intangible assets, net	2,028,974	1,709,347
Other assets	157,832	118,158
Total assets	5,930,828	6,163,579
Current liabilities:
Accounts payable	283,397	258,220
Accrued liabilities	162,978	133,770
Licensed asset obligation	7,058	17,374
Short-term debt	33,310	25,810
Deferred revenue	68,925	78,930
Operating lease liabilities	13,202	18,392
Deferred acquisition costs, current	75,719	107,601
Total current liabilities	644,589	640,097
Long-term debt	3,190,047	3,201,834
Operating lease liabilities, non-current	56,343	62,498
Licensed asset obligation, non-current	0	8,039
Other non-current liabilities	132,565	112,820
Total liabilities	4,023,544	4,025,288
Commitments and contingencies (Note 6)
Redeemable noncontrolling interest	109	201
Stockholders’ equity:
Convertible preferred stock,100,000,000 shares authorized, no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	0	0
Class A and Class B Common Stock, $0.00003 par value—1,700,000,000 (Class A 1,500,000,000 and Class B 200,000,000) shares authorized, 373,184,049 (Class A 294,521,427 and Class B 78,662,622) and 375,089,360 (Class A 296,426,738 and Class B 78,662,622) shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	11	11
Additional paid-in capital	3,149,474	3,160,487
Accumulated other comprehensive loss	(128,351)	(45,454)
Accumulated deficit	(1,113,959)	(976,954)
Total stockholders’ equity	1,907,175	2,138,090
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity	$ 5,930,828	$ 6,163,579

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par or stated value per share (in dollars per share)	$ 0.00003	$ 0.00003
Common stock, shares authorized (in shares)	1,700,000,000	1,700,000,000
Common stock, shares issued (in shares)	373,184,049	375,089,360
Common stock, shares outstanding (in shares)	373,184,049	375,089,360
Class A Common Stock
Common stock, shares authorized (in shares)	1,500,000,000	1,500,000,000
Common stock, shares issued (in shares)	294,521,427	296,426,738
Common stock, shares outstanding (in shares)	294,521,427	296,426,738
Class B Common Stock
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	78,662,622	78,662,622
Common stock, shares outstanding (in shares)	78,662,622	78,662,622

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 776,231	$ 668,806	$ 1,401,652	$ 1,272,683
Costs and expenses:
Cost of revenue	303,929	245,853	585,709	468,914
Sales and marketing	232,096	265,463	522,229	530,976
Research and development	141,108	77,462	267,358	138,338
General and administrative	45,743	45,050	100,988	88,012
Total costs and expenses	722,876	633,828	1,476,284	1,226,240
Income (loss) from operations	53,355	34,978	(74,632)	46,443
Other income (expense):
Interest expense and loss on settlement of debt	(36,505)	(19,030)	(68,514)	(54,040)
Other income (expense), net	518	(1,570)	2,532	8,220
Total other expense	(35,987)	(20,600)	(65,982)	(45,820)
Income (loss) before income taxes	17,368	14,378	(140,614)	623
Provision for (benefit from) income taxes	39,167	14	(3,517)	(3,166)
Net income (loss)	(21,799)	14,364	(137,097)	3,789
Add: Net loss attributable to noncontrolling interest	51	59	92	113
Net income (loss) attributable to AppLovin	(21,748)	14,423	(137,005)	3,902
Less: Net income attributable to participating securities	0	(1,128)	0	(807)
Net income (loss) attributable to common stock—Basic	(21,748)	13,295	(137,005)	3,095
Net income (loss) attributable to common stock—Diluted	$ (21,748)	$ 13,349	$ (137,005)	$ 3,137
Net income (loss) per share attributable to common stock:
Basic (in dollars per share)	$ (0.06)	$ 0.04	$ (0.37)	$ 0.01
Diluted (in dollars per share)	$ (0.06)	$ 0.04	$ (0.37)	$ 0.01
Weighted average common shares used to compute net income (loss) per share attributable to common stock:
Basic (in shares)	373,912,724	335,619,207	372,932,509	279,326,624
Diluted (in shares)	373,912,724	353,857,814	372,932,509	298,506,265

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (21,799)	$ 14,364	$ (137,097)	$ 3,789
Other comprehensive loss:
Foreign currency translation loss, net of tax	(69,365)	(9,188)	(82,897)	(9,909)
Total other comprehensive loss	(69,365)	(9,188)	(82,897)	(9,909)
Add: Net loss attributable to noncontrolling interest	51	59	92	113
Total comprehensive income (loss) attributable to AppLovin	$ (91,113)	$ 5,235	$ (219,902)	$ (6,007)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	IPO	Class A and Class B Common Stock	Class A and Class B Common Stock IPO	Additional Paid-In Capital	Additional Paid-In Capital IPO	Accumulated Other Comprehensive Loss	Accumulated Deficit	Redeemable Noncontrolling Interest	Convertible Preferred Stock Convertible Preferred Stock	Convertible Preferred Stock Convertible Preferred Stock IPO
Balance at beginning of period at Dec. 31, 2020									$ 309
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss									(54)
Balance at end of period at Mar. 31, 2021									255
Balance at beginning of period (in shares) at Dec. 31, 2020			226,364,401							109,090,908
Balance at beginning of period at Dec. 31, 2020	$ (158,545)		$ 7		$ 453,655		$ 604	$ (1,012,400)		$ 399,589
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)			1,232,156
Stock issued in connection with equity awards	10,143				10,143
Repurchases of stock (in shares)			(214,509)
Stock-based compensation	29,667				29,667
Other comprehensive loss, net	(721)						(721)
Net loss	(10,521)							(10,521)
Balance at end of period (in shares) at Mar. 31, 2021			227,382,048							109,090,908
Balance at end of period at Mar. 31, 2021	(129,977)		$ 7		493,465		(117)	(1,022,921)		$ 399,589
Balance at beginning of period at Dec. 31, 2020									309
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss	113
Balance at end of period at Jun. 30, 2021									196
Balance at beginning of period (in shares) at Dec. 31, 2020			226,364,401							109,090,908
Balance at beginning of period at Dec. 31, 2020	(158,545)		$ 7		453,655		604	(1,012,400)		$ 399,589
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	3,902
Balance at end of period (in shares) at Jun. 30, 2021			372,165,319							0
Balance at end of period at Jun. 30, 2021	1,997,441		$ 11		3,015,233		(9,305)	(1,008,498)		$ 0
Balance at beginning of period at Mar. 31, 2021									255
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss	59								(59)
Balance at end of period at Jun. 30, 2021									196
Balance at beginning of period (in shares) at Mar. 31, 2021			227,382,048							109,090,908
Balance at beginning of period at Mar. 31, 2021	(129,977)		$ 7		493,465		(117)	(1,022,921)		$ 399,589
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)			1,020,588
Stock issued in connection with equity awards	5,190				5,190
Exercise of warrants, net of shares withheld (in shares)			6,229,081
Issuance of Class A common stock in connection with acquisitions (in shares)			6,320,688
Issuance of Class A common stock in connection with acquisitions	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		1,747,970
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		$ 3		$ 399,586					$ (399,589)
Repurchases of stock (in shares)			(390,000)
Stock-based compensation	26,852				26,852
Other comprehensive loss, net	(9,188)						(9,188)
Net loss	14,423							14,423
Balance at end of period (in shares) at Jun. 30, 2021			372,165,319							0
Balance at end of period at Jun. 30, 2021	1,997,441		$ 11		3,015,233		(9,305)	(1,008,498)		$ 0
Balance at beginning of period at Dec. 31, 2021	201								201
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss									(41)
Balance at end of period at Mar. 31, 2022									160
Balance at beginning of period (in shares) at Dec. 31, 2021			375,089,360							0
Balance at beginning of period at Dec. 31, 2021	2,138,090		$ 11		3,160,487		(45,454)	(976,954)		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)			1,179,554
Stock issued in connection with equity awards	6,541				6,541
Shares withheld related to net share settlement (in shares)			(89,319)
Shares withheld related to net share settlement	(4,227)				(4,227)
Repurchases of stock - repurchase program (in shares)			(893,556)
Repurchases of stock - repurchase program	(43,697)				(43,697)
Stock-based compensation	44,377				44,377
Other comprehensive loss, net	(13,532)						(13,532)
Net loss	(115,257)							(115,257)
Balance at end of period (in shares) at Mar. 31, 2022			375,286,039							0
Balance at end of period at Mar. 31, 2022	2,012,295		$ 11		3,163,481		(58,986)	(1,092,211)		$ 0
Balance at beginning of period at Dec. 31, 2021	201								201
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss	92
Balance at end of period at Jun. 30, 2022	109								109
Balance at beginning of period (in shares) at Dec. 31, 2021			375,089,360							0
Balance at beginning of period at Dec. 31, 2021	2,138,090		$ 11		3,160,487		(45,454)	(976,954)		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(137,005)
Balance at end of period (in shares) at Jun. 30, 2022			373,184,049							0
Balance at end of period at Jun. 30, 2022	1,907,175		$ 11		3,149,474		(128,351)	(1,113,959)		$ 0
Balance at beginning of period at Mar. 31, 2022									160
Increase (Decrease) in Temporary Equity [Roll Forward]
Net loss	51								(51)
Balance at end of period at Jun. 30, 2022	109								$ 109
Balance at beginning of period (in shares) at Mar. 31, 2022			375,286,039							0
Balance at beginning of period at Mar. 31, 2022	2,012,295		$ 11		3,163,481		(58,986)	(1,092,211)		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercises and vesting of early exercised Class A common stock options (in shares)			1,194,805
Stock issued in connection with equity awards	8,267				8,267
Shares withheld related to net share settlement (in shares)			(234,412)
Shares withheld related to net share settlement	(9,384)				(9,384)
Repurchases of stock - repurchase program (in shares)			(5,749,856)
Repurchases of stock - repurchase program	(210,830)				(210,830)
Issuance of Class A common stock in connection with acquisitions (in shares)			2,579,692
Issuance of Class A common stock in connection with acquisitions	137,422				137,422
Issuance of common stock under employee stock purchase plan (in shares)			107,781
Issuance of common stock under employee stock purchase plan	3,663				3,663
Stock-based compensation	56,855				56,855
Other comprehensive loss, net	(69,365)						(69,365)
Net loss	(21,748)							(21,748)
Balance at end of period (in shares) at Jun. 30, 2022			373,184,049							0
Balance at end of period at Jun. 30, 2022	$ 1,907,175		$ 11		$ 3,149,474		$ (128,351)	$ (1,113,959)		$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating Activities
Net income (loss)	$ (137,097)	$ 3,789
Adjustments to reconcile net income (loss) to operating activities:
Amortization, depreciation and write-offs	281,677	195,973
Amortization of debt issuance costs and discount	6,820	6,380
Stock-based compensation	101,796	57,103
Change in operating right-of-use asset	10,558	12,267
Loss on settlement of debt	0	16,852
Net unrealized loss (gain) on fair value remeasurements	1,755	(9,855)
Net (gain) loss on foreign currency remeasurements	(1,277)	952
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	(163,416)	(69,881)
Prepaid expenses and other current assets	(28,993)	(92,851)
Other assets	3,033	5,269
Accounts payable	13,773	33,936
Operating lease liabilities	(12,046)	(12,083)
Accrued and other liabilities	7,795	6,752
Deferred revenue	(9,286)	(2,327)
Net cash provided by operating activities	75,092	152,276
Investing Activities
Purchase of property and equipment	(400)	(653)
Acquisitions, net of cash acquired	(1,294,352)	(1,017,012)
Purchase of non-marketable investments and other	(56,546)	(14,000)
Proceeds from other investing activities	2,162	10,000
Capitalized software development costs	(2,608)	(1,517)
Net cash used in investing activities	(1,351,744)	(1,023,182)
Financing Activities
Proceeds from Issuance Initial Public Offering	0	1,744,240
Proceeds from debt issuance, net of issuance costs	0	844,729
Payments of debt principal	(9,155)	(706,905)
Payments of finance leases	(12,326)	(4,621)
Proceeds from exercise of stock options	15,873	17,888
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan	3,663	0
Payments of deferred acquisition costs	(71,712)	(157,565)
Payments of licensed asset obligation	(17,374)	0
Repurchases of stock - repurchase program	(244,015)	0
Net cash provided by (used in) financing activities	(335,046)	1,737,766
Effect of foreign exchange rate on cash and cash equivalents	(7,246)	(352)
Net increase (decrease) in cash and cash equivalents	(1,618,944)	866,508
Cash, cash equivalents and restricted cash equivalents at beginning of the period	2,570,504	317,235
Cash and cash equivalents at end of the period	951,560	1,183,743
Supplemental non-cash investing and financing activities disclosures:
Issuance of common stock in connection with an acquisition	137,422	0
Acquisitions not yet paid	70,792	119,256
Assets acquired under finance leases	17,869	2,658
Repurchases of common stock included in accrued liabilities	10,512	0
Issuance of convertible security related to acquisitions	0	342,170
Deferred IPO costs not yet paid	0	986
Supplemental disclosure of cash flow information:
Cash paid for interest on debt	61,867	31,767
Cash paid for income taxes, net of refunds	$ 19,529	$ 32,737

Description of Business Basis o

Description of Business Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business Basis of Presentation	Description of Business Basis of Presentation Description of Business AppLovin Corporation (the “Company” or “AppLovin” or "we") 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 is headquartered in Palo Alto, California, and has several operating locations in the U.S. as well as various international office locations in North America, South 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 Annual Report on Form 10-K filed with the SEC on March 11, 2022. The condensed consolidated balance sheet data as of December 31, 2021 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 normal and 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, 2022 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 or any other period. Segments Effective May 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. As such, we now report operating results through two reportable segments: Software Platform and Apps, as further discussed in Note 4. Accordingly, segment information for the comparable prior year period has been revised.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with GAAP. Consolidated financial statements include accounts and operations of the Company and its subsidiaries in which the Company has a controlling financial interest. In accordance with the provisions of Accounting Standards Codifications ("ASC") 810, the Company consolidates any variable interest entities ("VIE") where it 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 has 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. We do not consolidate a VIE in which we have a majority ownership interest when we are 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. Revenue from Contracts with Customers The Company generates Software Platform and Apps revenue. Software Platform revenue is generated from fees paid by advertisers who use our Software Platform. The Company generates Apps revenue from both consumers and business clients. Consumer revenue is generated from in-app purchases (“IAPs”) made by users within the Company’s apps (“Apps”). Business revenue is generated from advertisers that purchase ad inventory from Apps. Software Platform Revenue The 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. Software Platform Revenue is generated by placing ads on mobile applications owned by Publishers. The Company’s performance obligation is to provide an advertiser with access to the Software Platform, which facilitates the advertiser’s purchase of ad inventory from Publishers. The Company does not control the ad 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 ad 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 the number of completions of agreed upon actions less consideration paid or payable to Publishers. Apps Revenue Consumer Revenue Consumer Revenue includes fees collected from users to purchase 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. 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 as deferred revenue. 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. 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, which is generally the estimated average user life (“EAUL”). 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 the 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 with limited playing data, the Company determines its EAUL based on the EAUL of a game with 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 Business Revenue Business Revenue is generated by selling ad inventory on the Company's Apps to third-party advertisers. Advertisers purchase ad inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of ad 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 revenue when the ad is displayed to users. 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 7, “Acquisitions” for additional information. Recent Accounting Pronouncements (Issued and Not Yet Adopted) In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires specific disclosures for equity securities subject to contractual sale restrictions. These changes will become effective for the Company on January 1, 2024. The Company is currently evaluating the potential impact of these changes. Recent Accounting Pronouncements (Issued and 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. The Company adopted this ASU on January 1, 2022 with no material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606).The Company adopted this ASU on January 1, 2022 with no material impact on the consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software Platform Revenue $ 317,540 $ 145,664 $ 436,380 $ 234,083 Consumer Revenue 303,268 360,919 642,740 719,414 Business Revenue 155,423 162,223 322,532 319,186 Apps Revenue 458,691 523,142 965,272 1,038,600 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683 Revenue disaggregated by geography, based on user location, consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 United States $ 481,378 $ 406,179 $ 861,945 $ 772,345 Rest of the World 294,853 262,627 539,707 500,338 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683 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, 2022 and 2021, the Company recognized $54.7 million and $59.5 million of revenue that was included in deferred revenue as of March 31, 2022 and 2021, respectively. During the six months ended June 30, 2022 and 2021, the Company recognized $73.4 million and $81.4 million of revenue that was included in deferred revenue as of December 31, 2021 and 2020, 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. Publisher Bonuses

Segments

Segments	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Segments	Segments In the second quarter of 2022, the Company revised the presentation of segment information to align with changes to how the Company's chief operating decision maker (“CODM”), which as of June 30, 2022 was the Chief Executive Officer, allocates resources and assesses performance. Effective May 2022, the Company reports operating results through two reportable segments: Software Platform and Apps. Previously, the Company had a single operating and reportable segment. Accordingly, financial information for the comparable prior year period has been updated to conform with the current year presentation of two segments. The CODM evaluates the performance of each segment using revenue and segment adjusted EBITDA and the components of net income excluded from adjusted EBITDA are not separately evaluated. We define segment adjusted EBITDA as revenue less expenses, excluding depreciation and amortization. Segment adjusted EBITDA is used as a consistent performance measure by removing the impact of certain items that do not directly reflect segments’ core operations. The reconciliation of the aggregate amount of segment adjusted EBITDA for the Company's reportable segments to consolidated income (loss) before income taxes is presented in the table further below. Revenue is attributed to the reportable segments based upon the customer. Expenses are attributed to the reportable segments either on a direct basis or are allocated. Allocated costs are generally sales and marketing-related activities and general and administrative overhead such as human resources, finance, legal, accounting and merger and acquisition activity. Revenue and expenses exclude transactions between our reportable segments. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, disclosure of assets by segment is not provided. The Software Platform and Apps segments provide a view into the organization of our business and generate revenue as follows: • Software Platform : primarily consists of revenue generated from fees paid by advertisers for the placement of ads on mobile applications owned by Publishers. • Apps : revenue is generated when a user of one of our Apps makes an in-app purchase ("Consumer Revenue") and when clients purchase the digital advertising inventory of our portfolio of Apps ("Business Revenue"). The following is selected financial data for our reportable segments for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue: Software Platform $ 317,540 $ 145,664 $ 436,380 $ 234,083 Apps 458,691 523,142 965,272 1,038,600 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683 Segment Adjusted EBITDA: Software Platform $ 196,744 $ 91,850 $ 432,299 $ 151,240 Apps 73,000 91,882 113,674 163,554 Total Segment Adjusted EBITDA $ 269,744 $ 183,732 $ 545,973 $ 314,794 Interest expense and loss on settlement of debt, net $ (36,505) $ (19,030) $ (68,514) $ (54,040) Other income (expense), net 2,452 (1,671) 4,869 6,955 Amortization, depreciation and write-offs (152,688) (107,156) (281,677) (195,973) Non-operating foreign exchange gain (loss) 819 (6) 1,277 1,275 Stock-based compensation (57,156) (29,435) (101,796) (59,394) Acquisition-related expense and transaction bonus (1,921) (12,056) (16,735) (12,994) Publisher bonuses — — (209,635) — MoPub acquisition transition services — — (6,999) — Restructuring costs (7,377) — (7,377) — Income (loss) before provision for tax $ 17,368 $ 14,378 $ (140,614) $ 623

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. At June 30, 2022 and December 31, 2021, the carrying amount of cash and cash equivalents, accounts receivable, other current assets, other assets, accounts payable, and accrued and other current liabilities approximated their estimated fair value due to their relatively short maturities. 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, 2022 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Unrestricted Balances Money market funds Cash and cash equivalents $ 717,091 $ 717,091 $ — $ — Total financial assets $ 717,091 $ 717,091 $ — $ — As of December 31, 2021 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Unrestricted Balances Money market funds Cash and cash equivalents $ 1,070,979 $ 1,070,979 $ — $ — Marketable equity securities Prepaid expenses and other current assets $ 2,532 $ 2,532 $ — $ — Restricted Balances Money market funds Restricted cash equivalents 1,050,000 1,050,000 — — Total financial assets $ 2,123,511 $ 2,123,511 $ — $ — Non-Marketable Equity Securities Measured at Net Asset Value The Company held equity interests in certain private equity funds of $21.3 million a nd $3.2 million as of June 30, 2022 and December 31, 2021, respectively, which are measured using the net asset value practical expedient. Under the net asset value practical expedient, the Company records its investments based on its proportionate share of the underlying funds’ net asset value as of the Company's reporting date. These investments are included in other assets in the Company’s condensed consolidated balance sheets. These funds vary in investment strategies and generally have an initial term of 7 to 10 years, which may be extended for 2 to 3 additional years with the applicable approval. These investments are subject to certain restrictions regarding transfers and withdrawals and generally cannot be redeemed with the funds. Distributions from the funds will be received as the underlying investments are liquidated. The Company’s maximum exposure to loss is limited to the carrying value of these investments of $21.3 million and the unfunded commitments of $38.0 million as of June 30, 2022. During the three and six months ended June 30, 2022, the Company made total capital contributions of $4.4 million and $18.5 million related to these investments and recorded an unrealized loss of $0.8 million and an unrealized gain of $0.8 million in other income, net in the Company’s condensed consolidated statement of operations, respectively. The Company had no such investments in 2021. Non-Marketable Equity Securities Measured at Fair Value on a Non-Recurring Basis During the three months ended June 30, 2022, the Company purchased certain non-marketable equity securities for total proceeds of $38.0 million. Non-marketable equity securities are investments in privately held companies without readily determinable fair values. The Company elected the measurement alternative to account for these investments. Under the measurement alternative, the carrying value of the non-marketable equity securities are adjusted based on price changes from observable transactions of identical or similar securities of the same issuer or for impairment. Any changes in carrying value are recorded within other income (expense), net in the Company's condensed consolidated statement of operations. There was no change in the carrying value of the non-marketable equity securities during the three months ended June 30, 2022. These investments are included in other assets in the Company’s condensed consolidated balance sheets. The Company had no such investments in 2021.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments As of June 30, 2022, the Company's non-cancelable minimum purchase commitments comprised primarily of a certain arrangement related to cloud platform services, under which the Company committed to a minimum spend of $550.0 million through May 2025. As of June 30, 2022, the Company has not yet made any payments towards this commitment. In addition, the Company had total unfunded commitments of $38.0 million related to its investments in certain private equity funds (see Note 5). 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, 2022 and December 31, 2021, 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 our 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, 2022, the Company did not have any material indemnification claims that were probable or reasonably possible. Non-income Taxes

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions 2022 Acquisitions Business Combinations Wurl — On April 1, 2022, the Company completed its acquisition of all of the equity interests of Wurl , Inc. ("Wurl") , a connected TV software platform, for a total purchase price of $378.2 million, consisting of $219.3 million in cash, 2,579,692 shares of the Company's Class A common stock valued at $137.4 million and a deferred payment of $21.5 million relating to an indemnity holdback amount to be paid in 18 months following the transaction close date. The transaction will enable the Company to expand into the connected TV market. The Company accounted for the acquisition as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $1.9 million. The following table summarizes the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 400 Accounts receivable and other current assets 15,194 Intangible assets Customer Relationships—estimated useful life of 15 years 41,000 Developed Technology—estimated useful life of 6 years 60,500 Tradename—estimated useful life of 10 years 14,700 Goodwill 261,945 Property and equipment, net 363 Other assets 159 Accounts payable, accrued liabilities and other current liabilities (12,854) Deferred revenue (209) Deferred income tax liability (3,031) Total purchase consideration $ 378,167 The above allocation of the purchase price is still provisional and subject to change within the measurement period, including potential adjustments to deferred tax balances. The final allocation of the purchase price is expected to be completed as soon as practicable, but no later than one year from the date of the acquisition close. 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, no tax deductible goodwill was generated as a result of this acquisition. Contemporaneously with entering into the definitive agreement, the Company also adopted a multi-year performance-based incentive plan for certain key employees of Wurl, under which the key employees may earn up to a total of $600.0 million in additional shares of the Company's Class A common stock through 2025, contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction. The Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022 includes Wurl's revenue of $11.4 million and pre-tax loss of $4.6 million for the p eriod from the acquisition date of April 1, 2022 to June 30, 2022. See Pro forma results of operations below under "Supplemental Pro Forma Information". MoPub — On January 1, 2022, the Company completed its acquisition from Twitter, Inc. of certain assets that comprised of its MoPub business for a total purchase price of $1.03 billion in cash. The acquisition allows the Company to integrate certain product features of the MoPub platform into MAX, the Company's own in-app mediation platform, and migrate publishers and demand partners from the MoPub platform to MAX. The Company accounted for the acquisition as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $14.4 million. The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired (in thousands): As of June 30, 2022 Intangible assets Advertiser Relationships—estimated useful life of 9 years $ 212,700 Publisher Relationships—estimated useful life of 9 years 123,300 Developed Technology—estimated useful life of 5 years 61,800 Tradename—estimated useful life of 3 months 60 Goodwill 632,472 Total purchase consideration $ 1,030,332 The fair values assigned to the assets acquired are based on the Company's best estimates and assumptions as of the reporting date. No liabilities were assumed in the transaction. 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 advertiser relationships, publisher relationships, developed technology and tradename. Goodwill represents the excess of the purchase price over the preliminary fair value of identifiable assets acquired 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 $694.5 million was generated as a result of this acquisition. Contemporaneously with the signing of the asset purchase agreement, the Company entered into an agreement for Twitter, Inc. to provide certain transitional services to facilitate the migration of publishers and demand partners to MAX during a three-month transitional period following the closing of the transaction (the "TSA"). The Company accounted for the TSA as a transaction separate from the business combination since it was negotiated primarily for the benefit of the Company. During the six months ended June 30, 2022, the Company recognized total expense of $7.0 million related to the transitional services, which was included primarily in cost of revenue in the Company's condensed consolidated statement of operations. Due to the significant integration of the MoPub business with MAX, it was impractical to determine the impact of the acquired business on revenue or earnings. See Pro forma results of operations below under "Supplemental Pro Forma Information". Asset Acquisitions During the three and six months ended June 30, 2022, the Company recognized total earn-out costs of $43.8 million and $75.5 million, respectively, related to asset acquisitions closed in 2021 and prior. No other asset acquisition was completed during the three and six-month period ended June 30, 2022. 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 price of $980.0 million, which was composed of a $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 Platform 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 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 income approach was used to determine the fair value of the customer relationships, developed technology, 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. For tax purposes, a 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". 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. Supplemental Pro Forma Information The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Adjust, the MoPub business, and Wurl for each of the periods presented as if Adjust had been acquired as of January 1, 2020, and the MoPub business and Wurl had been acquired as of January 1, 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue $ 776,231 $ 723,699 $ 1,410,684 $ 1,397,200 Net income (loss) $ (20,810) $ 20,974 $ (128,437) $ (18,880) The unaudited supplemental pro forma information above includes the following adjustments to net loss in the appropriate pro forma periods (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 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 $ — $ (17,953) $ (3,512) $ (40,253) A decrease (increase) in expenses related to the TSA $ — $ — $ 7,000 $ (7,000) An increase in revenue related to fair value adjustment $ — $ 538 $ 538 An (increase) due to replacement stock awards $ — $ (2,693) $ (1,221) $ (6,159) An (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) $ — $ (2,641) A decrease (increase) in expenses related to transaction costs $ 179 $ 2,903 $ 16,899 $ (8,912) A decrease in expenses related to transaction bonuses $ 1,101 $ 10,000 $ 1,101 $ 8,899 A decrease (increase) in income tax provision $ (292) $ 1,952 $ (4,625) $ 12,671

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net As described in Note 4, as of May 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. As such, the Company now has two operating segments, Software Platform and Apps, which are also its reporting units. This change also resulted in a change in reporting units to coincide with the new operating segments—Software Platform and Apps. Due to this change, the Company considered whether indicators of impairment were present through the date of filing of this Quarterly Report on Form 10-Q for goodwill and concluded that no applicable factors existed to give rise to goodwill impairment testing during the three months ended June 30, 2022. Though we concluded that goodwill impairment testing was not applicable as of June 30, 2022, we will continue to monitor impairment indicators. The fair value of reporting units after the change was measured using a discounted cash flow valuation model incorporating discount rates commensurate with the risks involved. The Company allocated goodwill to the new reporting units using a relative fair value approach with total goodwill of $1.8 billion allocated, $1.5 billion to Software Platform and $0.3 billion to Apps. The following table presents goodwill activity (in thousands): December 31, 2021 $ 966,427 Goodwill acquired 894,463 Foreign currency translation (57,723) June 30, 2022 $ 1,803,167 Intangible assets, net consisted of the following (in thousands): Weighted- As of June 30, 2022 As of December 31, 2021 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 4.8 $ 1,988,525 $ (701,772) $ 1,286,753 $ 1,939,180 $ (529,012) $ 1,410,168 Customer relationships 9.7 511,338 (32,722) 478,616 145,870 (8,442) 137,428 User base 3.8 68,817 (32,245) 36,572 68,817 (27,369) 41,448 License asset 1.0 25,640 (8,547) 17,093 25,640 — 25,640 Developed technology 5.1 204,405 (36,269) 168,136 87,851 (21,435) 66,416 Other 6.6 51,409 (9,605) 41,804 34,895 (6,648) 28,247 Total long-lived intangible assets 2,850,134 (821,160) 2,028,974 2,302,253 (592,906) 1,709,347 Short-lived intangible assets: Apps 0.5 44,807 (42,961) 1,846 40,348 (38,724) 1,624 Total intangible assets $ 2,894,941 $ (864,121) $ 2,030,820 $ 2,342,601 $ (631,630) $ 1,710,971 As of June 30, 2022 and December 31, 2021, 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, 2022 2021 2022 2021 Cost of revenue $ 126,237 $ 95,200 $ 230,856 $ 177,385 Sales and marketing 16,532 6,034 32,924 9,243 Total $ 142,769 $ 101,234 $ 263,780 $ 186,628

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Common Stock	Common Stock In February 2022, the Company's Board authorized the repurchase of up to $750.0 million of the Company’s Class A common stock. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company may also, from time to time, enter into Rule 10b-5 trading plans, under the Exchange Act, to facilitate repurchases of its shares. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock, has no expiration date and may be modified, suspended, or terminated at any time at the Company's discretion. As of June 30, 2022, the Company repurchased 6,643,412 shares of our Class A common stock for an aggregate amount of $254.5 million.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation The Company maintains the 2021 Equity Incentive Plan, the 2021 Partner Studio Incentive Plan, and the 2021 Employee Stock Purchase Plan, all of which were adopted by the Board and approved by its stockholders. 2021 Equity Incentive Plan The 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of restricted stock units ("RSUs"), incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), restricted stock, stock appreciation rights ("SARs"), performance units, and performance shares to the Company’s employees, directors, consultants, and other service providers. The total shares of the Company’s Class A common stock that were initially reserved for issuance under the 2021 Plan was 39,000,000, and provides for an annual increase of shares 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 may determine. During the six months ended June 30, 2022, the Board decreased the number of shares of Class A common stock reserved for issuance under the 2021 Plan by 2,000,000 shares. In the three and six months ended June 30, 2022, the Company granted 2,388,544 and 3,293,317 RSUs to certain employees under the 2021 Plan at the weighted average grant date fair value of $41.92 and $49.63 per RSU, respectively. The RSUs generally vest over an approximate period of four 2021 Partner Studio Incentive Plan The 2021 Partner Studio Incentive Plan (the “2021 Partner Plan”) provides for the grant of RSUs, ISOs, NSOs, 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. During the six months ended June 30, 2022, the Board reserved an additional 2,000,000 shares of Class A common stock for issuance under the 2021 Partner Plan. In the three and six months ended June 30, 2022, the Company granted 452,517 and 577,772 RSUs under the 2021 Partner Plan at the weighted average grant date fair value of $46.74 and $47.05 per RSU, respectively. The RSUs generally vest over an approximate period of four 2021 Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (the "ESPP") permits participants to purchase shares of the Company’s Class A common stock through contributions of up to 15% of their eligible compensation. The ESPP provides for consecutive, overlapping 24-month offering periods, during which the contributed amount by the participant will be used to purchase shares of the Company’s 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. 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. A total of 7,800,000 shares of the Company’s Class A common stock are available for sale under the ESPP and provides for an annual increase of shares 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. During the six months ended June 30, 2022, 107,781 shares were purchased under the ESPP. 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, 2022 2021 2022 2021 Cost of revenue $ 2,706 $ 473 $ 3,758 $ 582 Sales and marketing 13,432 2,221 20,351 4,040 Research and development 25,890 13,573 46,519 20,038 General and administrative 15,128 10,877 31,168 32,443 Total $ 57,156 $ 27,144 $ 101,796 $ 57,103 For the three and six months ended June 30, 2022 and 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, respectively. Early Exercise of Stock Options —As of June 30, 2022 and December 31, 2021, the Company had 512,249 and 486,999 shares of Class A common stock subject to repurchase in connection with early exercised stock options, respectively. The liability for the shares subject to repurchase as of June 30, 2022 and December 31, 2021 was $2.5 million and $1.4 million, respectively, which was included in 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, 2022 and December 31, 2021, the Company had 1,774,999 and 2,884,999 shares of Class A common stock options, respectively, that were exercised via nonrecourse promissory notes, of which 198,231 and 663,856 shares, were unvested and subject to repurchase, respectively. The principal balances of nonrecourse promissory notes outstanding amounted to $6.9 million and $15.1 million as of June 30, 2022 and December 31, 2021, respectively.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share 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, 2022 2021 2022 2021 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ (21,748) $ 14,423 $ (137,005) $ 3,902 Less: Income attributable to convertible preferred stock — $ (902) — $ (731) Income attributable to options exercised by 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 $ (21,748) $ 13,295 $ (137,005) $ 3,095 Denominator: Weighted average common shares used to compute net income (loss) per share attributable to common stock, basic 373,912,724 335,619,207 372,932,509 279,326,624 Net income (loss) per share attributable to common stock, basic $ (0.06) $ 0.04 $ (0.37) $ 0.01 Diluted EPS Numerator: Net income (loss) attributable to AppLovin $ (21,748) $ 14,423 $ (137,005) $ 3,902 Less: Income attributable to convertible preferred stock — $ (859) — $ (693) Income attributable to options exercises by 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 $ (21,748) $ 13,349 $ (137,005) $ 3,137 Denominator: Weighted-average shares used in computing net income (loss) per share: Basic 373,912,724 335,619,207 372,932,509 279,326,624 Weighted-average dilutive stock options, RSUs, and convertible security — 18,238,607 — 19,179,641 Weighted-average shares used in computing net income (loss) per share: Diluted 373,912,724 353,857,814 372,932,509 298,506,265 Net income (loss) per share attributable to common stock: Diluted $ (0.06) $ 0.04 $ (0.37) $ 0.01 The following table presents the forms of antidilutive potential common shares: As of June 30, 2022 2021 Stock options exercised for promissory notes 1,774,999 3,484,999 Shares issuable upon conversion of Athena convertible security — 616,003 Early exercised stock options 512,249 1,291,975 Unvested RSAs 60,579 512,613 Stock options 13,196,979 35,250 Unvested RSUs 9,316,138 — ESPP 432,845 226,156 Total antidilutive potential common shares 25,293,789 6,166,996

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
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 records 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 2022 annual effective tax rate differs from the U.S. statutory rate primarily due to stock-based compensation expense, foreign derived intangible income deduction, global intangible low-taxed income, and valuation allowance against losses which are not more likely than not to be realized. During the six months ended June 30, 2022, 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, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions On February 12, 2021, the Company amended its credit agreement that provides for senior secured credit consisting of term loans and a revolving credit facility, with varying maturity dates through 2028. In connection with this amendment, the Company paid $0.8 million in fees to KKR Capital Markets LLC, which is affiliated with KKR Denali Holdings L.P. ("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.

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring	RestructuringIn June 2022, the Company announced a workforce reduction which affected approximately 12% of the Company’s employees. As a result, the Company recognized a total restructuring charge of $7.4 million comprising primarily of one-time termination benefits in the Company’s condensed consolidated statement of operations for the three months ended June 30, 2022. The majority of such restructuring costs was not paid and was included in the accrued liabilities on the Company's condensed consolidated balance sheet as of June 30, 2022. The Company expects to pay all restructuring costs related to the workforce reduction in the third quarter of 2022.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn August 2022, the Company made a non-binding proposal to combine with Unity Software Inc. (“Unity”), an industry leading platform for creating and operating interactive, real-time 3D content, in a transaction where all outstanding shares of Unity common stock would be exchanged for shares of the Company’s Class A and Class C common stock. The proposed transaction is subject to a number of contingencies, and it is uncertain that any transaction will be consummated on the terms described above or at all.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	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 Annual Report on Form 10-K filed with the SEC on March 11, 2022. The condensed consolidated balance sheet data as of December 31, 2021 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 normal and 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, 2022 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 or any other period.
Segments	Segments Effective May 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. As such, we now report operating results through two reportable segments: Software Platform and Apps, as further discussed in Note 4. Accordingly, segment information for the comparable prior year period has been revised.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with GAAP. Consolidated financial statements include accounts and operations of the Company and its subsidiaries in which the Company has a controlling financial interest. In accordance with the provisions of Accounting Standards Codifications ("ASC") 810, the Company consolidates any variable interest entities ("VIE") where it 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 has 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. We do not consolidate a VIE in which we have a majority ownership interest when we are 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.
Revenue from Contracts with Customers	Revenue from Contracts with Customers The Company generates Software Platform and Apps revenue. Software Platform revenue is generated from fees paid by advertisers who use our Software Platform. The Company generates Apps revenue from both consumers and business clients. Consumer revenue is generated from in-app purchases (“IAPs”) made by users within the Company’s apps (“Apps”). Business revenue is generated from advertisers that purchase ad inventory from Apps. Software Platform Revenue The 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. Software Platform Revenue is generated by placing ads on mobile applications owned by Publishers. The Company’s performance obligation is to provide an advertiser with access to the Software Platform, which facilitates the advertiser’s purchase of ad inventory from Publishers. The Company does not control the ad 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 ad 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 the number of completions of agreed upon actions less consideration paid or payable to Publishers. Apps Revenue Consumer Revenue Consumer Revenue includes fees collected from users to purchase 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. 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 as deferred revenue. 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. 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, which is generally the estimated average user life (“EAUL”). 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 the 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 with limited playing data, the Company determines its EAUL based on the EAUL of a game with 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 Business Revenue Business Revenue is generated by selling ad inventory on the Company's Apps to third-party advertisers. Advertisers purchase ad inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of ad 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 revenue when the ad is displayed to users.
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 7, “Acquisitions” for additional information.
Recent Accounting Pronouncements	Recent Accounting Pronouncements (Issued and Not Yet Adopted) In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires specific disclosures for equity securities subject to contractual sale restrictions. These changes will become effective for the Company on January 1, 2024. The Company is currently evaluating the potential impact of these changes. Recent Accounting Pronouncements (Issued and 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. The Company adopted this ASU on January 1, 2022 with no material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606).The Company adopted this ASU on January 1, 2022 with no material impact on the consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Summary of Revenue Disaggregated by Type	The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software Platform Revenue $ 317,540 $ 145,664 $ 436,380 $ 234,083 Consumer Revenue 303,268 360,919 642,740 719,414 Business Revenue 155,423 162,223 322,532 319,186 Apps Revenue 458,691 523,142 965,272 1,038,600 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683
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, 2022 2021 2022 2021 United States $ 481,378 $ 406,179 $ 861,945 $ 772,345 Rest of the World 294,853 262,627 539,707 500,338 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The following is selected financial data for our reportable segments for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue: Software Platform $ 317,540 $ 145,664 $ 436,380 $ 234,083 Apps 458,691 523,142 965,272 1,038,600 Total Revenue $ 776,231 $ 668,806 $ 1,401,652 $ 1,272,683 Segment Adjusted EBITDA: Software Platform $ 196,744 $ 91,850 $ 432,299 $ 151,240 Apps 73,000 91,882 113,674 163,554 Total Segment Adjusted EBITDA $ 269,744 $ 183,732 $ 545,973 $ 314,794 Interest expense and loss on settlement of debt, net $ (36,505) $ (19,030) $ (68,514) $ (54,040) Other income (expense), net 2,452 (1,671) 4,869 6,955 Amortization, depreciation and write-offs (152,688) (107,156) (281,677) (195,973) Non-operating foreign exchange gain (loss) 819 (6) 1,277 1,275 Stock-based compensation (57,156) (29,435) (101,796) (59,394) Acquisition-related expense and transaction bonus (1,921) (12,056) (16,735) (12,994) Publisher bonuses — — (209,635) — MoPub acquisition transition services — — (6,999) — Restructuring costs (7,377) — (7,377) — Income (loss) before provision for tax $ 17,368 $ 14,378 $ (140,614) $ 623

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Unrestricted Balances Money market funds Cash and cash equivalents $ 717,091 $ 717,091 $ — $ — Total financial assets $ 717,091 $ 717,091 $ — $ — As of December 31, 2021 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Unrestricted Balances Money market funds Cash and cash equivalents $ 1,070,979 $ 1,070,979 $ — $ — Marketable equity securities Prepaid expenses and other current assets $ 2,532 $ 2,532 $ — $ — Restricted Balances Money market funds Restricted cash equivalents 1,050,000 1,050,000 — — Total financial assets $ 2,123,511 $ 2,123,511 $ — $ —

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2022
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 price to the fair value of the assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 400 Accounts receivable and other current assets 15,194 Intangible assets Customer Relationships—estimated useful life of 15 years 41,000 Developed Technology—estimated useful life of 6 years 60,500 Tradename—estimated useful life of 10 years 14,700 Goodwill 261,945 Property and equipment, net 363 Other assets 159 Accounts payable, accrued liabilities and other current liabilities (12,854) Deferred revenue (209) Deferred income tax liability (3,031) Total purchase consideration $ 378,167 The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired (in thousands): As of June 30, 2022 Intangible assets Advertiser Relationships—estimated useful life of 9 years $ 212,700 Publisher Relationships—estimated useful life of 9 years 123,300 Developed Technology—estimated useful life of 5 years 61,800 Tradename—estimated useful life of 3 months 60 Goodwill 632,472 Total purchase consideration $ 1,030,332 The following table summarizes 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
Supplemental Pro Forma Information	The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Adjust, the MoPub business, and Wurl for each of the periods presented as if Adjust had been acquired as of January 1, 2020, and the MoPub business and Wurl had been acquired as of January 1, 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue $ 776,231 $ 723,699 $ 1,410,684 $ 1,397,200 Net income (loss) $ (20,810) $ 20,974 $ (128,437) $ (18,880)
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments	The unaudited supplemental pro forma information above includes the following adjustments to net loss in the appropriate pro forma periods (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 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 $ — $ (17,953) $ (3,512) $ (40,253) A decrease (increase) in expenses related to the TSA $ — $ — $ 7,000 $ (7,000) An increase in revenue related to fair value adjustment $ — $ 538 $ 538 An (increase) due to replacement stock awards $ — $ (2,693) $ (1,221) $ (6,159) An (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) $ — $ (2,641) A decrease (increase) in expenses related to transaction costs $ 179 $ 2,903 $ 16,899 $ (8,912) A decrease in expenses related to transaction bonuses $ 1,101 $ 10,000 $ 1,101 $ 8,899 A decrease (increase) in income tax provision $ (292) $ 1,952 $ (4,625) $ 12,671

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill Activity	The following table presents goodwill activity (in thousands): December 31, 2021 $ 966,427 Goodwill acquired 894,463 Foreign currency translation (57,723) June 30, 2022 $ 1,803,167
Summary of Intangible Assets Acquired, Net	Intangible assets, net consisted of the following (in thousands): Weighted- As of June 30, 2022 As of December 31, 2021 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 4.8 $ 1,988,525 $ (701,772) $ 1,286,753 $ 1,939,180 $ (529,012) $ 1,410,168 Customer relationships 9.7 511,338 (32,722) 478,616 145,870 (8,442) 137,428 User base 3.8 68,817 (32,245) 36,572 68,817 (27,369) 41,448 License asset 1.0 25,640 (8,547) 17,093 25,640 — 25,640 Developed technology 5.1 204,405 (36,269) 168,136 87,851 (21,435) 66,416 Other 6.6 51,409 (9,605) 41,804 34,895 (6,648) 28,247 Total long-lived intangible assets 2,850,134 (821,160) 2,028,974 2,302,253 (592,906) 1,709,347 Short-lived intangible assets: Apps 0.5 44,807 (42,961) 1,846 40,348 (38,724) 1,624 Total intangible assets $ 2,894,941 $ (864,121) $ 2,030,820 $ 2,342,601 $ (631,630) $ 1,710,971
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, 2022 2021 2022 2021 Cost of revenue $ 126,237 $ 95,200 $ 230,856 $ 177,385 Sales and marketing 16,532 6,034 32,924 9,243 Total $ 142,769 $ 101,234 $ 263,780 $ 186,628

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 2021 2022 2021 Cost of revenue $ 2,706 $ 473 $ 3,758 $ 582 Sales and marketing 13,432 2,221 20,351 4,040 Research and development 25,890 13,573 46,519 20,038 General and administrative 15,128 10,877 31,168 32,443 Total $ 57,156 $ 27,144 $ 101,796 $ 57,103

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
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, 2022 2021 2022 2021 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ (21,748) $ 14,423 $ (137,005) $ 3,902 Less: Income attributable to convertible preferred stock — $ (902) — $ (731) Income attributable to options exercised by 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 $ (21,748) $ 13,295 $ (137,005) $ 3,095 Denominator: Weighted average common shares used to compute net income (loss) per share attributable to common stock, basic 373,912,724 335,619,207 372,932,509 279,326,624 Net income (loss) per share attributable to common stock, basic $ (0.06) $ 0.04 $ (0.37) $ 0.01 Diluted EPS Numerator: Net income (loss) attributable to AppLovin $ (21,748) $ 14,423 $ (137,005) $ 3,902 Less: Income attributable to convertible preferred stock — $ (859) — $ (693) Income attributable to options exercises by 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 $ (21,748) $ 13,349 $ (137,005) $ 3,137 Denominator: Weighted-average shares used in computing net income (loss) per share: Basic 373,912,724 335,619,207 372,932,509 279,326,624 Weighted-average dilutive stock options, RSUs, and convertible security — 18,238,607 — 19,179,641 Weighted-average shares used in computing net income (loss) per share: Diluted 373,912,724 353,857,814 372,932,509 298,506,265 Net income (loss) per share attributable to common stock: Diluted $ (0.06) $ 0.04 $ (0.37) $ 0.01
Summary of Antidilutive Potential Common Shares	The following table presents the forms of antidilutive potential common shares: As of June 30, 2022 2021 Stock options exercised for promissory notes 1,774,999 3,484,999 Shares issuable upon conversion of Athena convertible security — 616,003 Early exercised stock options 512,249 1,291,975 Unvested RSAs 60,579 512,613 Stock options 13,196,979 35,250 Unvested RSUs 9,316,138 — ESPP 432,845 226,156 Total antidilutive potential common shares 25,293,789 6,166,996

Description of Business Basis_2

Description of Business Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 segment
Product Information [Line Items]
Number of reportable segments	2
Durable Virtual Goods | Minimum
Product Information [Line Items]
Estimated average user life	6 months
Durable Virtual Goods | 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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue from External Customer [Line Items]
Revenue	$ 776,231	$ 668,806	$ 1,401,652	$ 1,272,683
Software Platform Revenue
Revenue from External Customer [Line Items]
Revenue	317,540	145,664	436,380	234,083
Apps Revenue
Revenue from External Customer [Line Items]
Revenue	458,691	523,142	965,272	1,038,600
Consumer Revenue
Revenue from External Customer [Line Items]
Revenue	303,268	360,919	642,740	719,414
Business Revenue
Revenue from External Customer [Line Items]
Revenue	$ 155,423	$ 162,223	$ 322,532	$ 319,186

Revenue - Summary of Revenue _2

Revenue - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 776,231	$ 668,806	$ 1,401,652	$ 1,272,683
United States
Disaggregation of Revenue [Line Items]
Revenue	481,378	406,179	861,945	772,345
Rest of the World
Disaggregation of Revenue [Line Items]
Revenue	$ 294,853	$ 262,627	$ 539,707	$ 500,338

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 54,700		$ 59,500	$ 73,400	$ 81,400
Segment Reconciling Items
Disaggregation of Revenue [Line Items]
Consideration incurred for existing and potential customer incentive bonuses	$ 0		$ 0	$ 209,635	$ 0
MoPub | Segment Reconciling Items
Disaggregation of Revenue [Line Items]
Consideration incurred for existing and potential customer incentive bonuses		$ 209,600

Segments - Narrative (Details)

Segments - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2

Segments - Schedule of Segment

Segments - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	$ 776,231		$ 668,806	$ 1,401,652	$ 1,272,683
Adjusted EBITDA	269,744		183,732	545,973	314,794
Interest expense and loss on settlement of debt	(36,505)		(19,030)	(68,514)	(54,040)
Other income (expense), net	518		(1,570)	2,532	8,220
Amortization, depreciation and write-offs				(281,677)	(195,973)
Non-operating foreign exchange gain (loss)				1,277	(952)
Stock-based compensation	(57,156)		(27,144)	(101,796)	(57,103)
Income (loss) before income taxes	17,368		14,378	(140,614)	623
Software Platform Revenue
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	317,540		145,664	436,380	234,083
Adjusted EBITDA	196,744		91,850	432,299	151,240
Apps
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	458,691		523,142	965,272	1,038,600
Adjusted EBITDA	73,000		91,882	113,674	163,554
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Interest expense and loss on settlement of debt	(36,505)		(19,030)	(68,514)	(54,040)
Other income (expense), net	2,452		(1,671)	4,869	6,955
Amortization, depreciation and write-offs	(152,688)		(107,156)	(281,677)	(195,973)
Non-operating foreign exchange gain (loss)	819		(6)	1,277	1,275
Stock-based compensation	(57,156)		(29,435)	(101,796)	(59,394)
Acquisition-related expense and transaction bonus	(1,921)		(12,056)	(16,735)	(12,994)
Publisher bonuses	0		0	(209,635)	0
Restructuring costs	(7,377)		0	(7,377)	0
MoPub
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Acquisition-related expense and transaction bonus				(14,400)
MoPub | Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Publisher bonuses		$ (209,600)
Acquisition transition services	$ 0		$ 0	$ (6,999)	$ 0

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	$ 717,091	$ 2,123,511
Money market funds | Cash and cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	717,091	1,070,979
Money market funds | Restricted cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		1,050,000
Marketable equity securities | Prepaid expenses and other current assets
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		2,532
Level 1
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	717,091	2,123,511
Level 1 | Money market funds | Cash and cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	717,091	1,070,979
Level 1 | Money market funds | Restricted cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		1,050,000
Level 1 | Marketable equity securities | Prepaid expenses and other current assets
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		2,532
Level 2
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	0	0
Level 2 | Money market funds | Cash and cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	0	0
Level 2 | Money market funds | Restricted cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		0
Level 2 | Marketable equity securities | Prepaid expenses and other current assets
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		0
Level 3
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	0	0
Level 3 | Money market funds | Cash and cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets	$ 0	0
Level 3 | Money market funds | Restricted cash equivalents
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		0
Level 3 | Marketable equity securities | Prepaid expenses and other current assets
Fair Value By Fair Value Hierarchy Level [Line Items]
Financial Assets		$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Fair Value by Fair Value Hierarchy Level [Line Items]
Investment fund, maximum exposure loss limit	$ 21.3	$ 21.3
Investment fund, maximum exposure loss limit, unfunded commitments	38	38
Purchase of non-marketable investments	4.4	18.5
Equity securities without readily determinable fair value, downward price adjustment	0.8
Equity securities without readily determinable fair value, upward price adjustment		$ 0.8
Proceeds from non marketable securities	38
Minimum
Fair Value by Fair Value Hierarchy Level [Line Items]
Investment fund, term		7 years
Investment fund, option to extend, term		2 years
Maximum
Fair Value by Fair Value Hierarchy Level [Line Items]
Investment fund, term		10 years
Investment fund, option to extend, term		3 years
Fair Value Measured at Net Asset Value Per Share
Fair Value by Fair Value Hierarchy Level [Line Items]
Equity securities without readily determinable fair value	$ 21.3	$ 21.3	$ 3.2

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Cloud Platform Services
Other Commitments [Line Items]
Unfunded committed amount	$ 550
Private Equity Funds
Other Commitments [Line Items]
Unfunded committed amount	38
Standby Letters of Credit
Other Commitments [Line Items]
Letters of credit outstanding	$ 11.1	$ 11.1

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details)				1 Months Ended		2 Months Ended	3 Months Ended		6 Months Ended		15 Months Ended
	Apr. 01, 2022 USD ($) shares	Jan. 01, 2022 USD ($)	Apr. 20, 2021 USD ($)	Jun. 30, 2021 USD ($)	Apr. 30, 2021 USD ($) transaction	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)
Business Acquisition [Line Items]
Consideration transferred, liabilities incurred									$ 0	$ 342,170,000
Certain Mobile Game Apps
Business Acquisition [Line Items]
Contingent consideration, costs							$ 43,800,000		75,500,000
Acquistion of Certain Mobile Game Apps
Business Acquisition [Line Items]
Contingent consideration, costs								$ 51,800,000		87,600,000
Number of asset acquisitions | transaction					2
Payments for asset acquisitions				$ 130,000,000	$ 300,000,000			8,000,000		8,000,000
Asset acquisition, transaction cost				4,000,000	6,000,000
Asset acquisition, consideration transferred				$ 134,000,000	$ 306,000,000
Acquired asset, amortization period				9 years	8 years
Development services agreement, term				4 years	4 years
Contingent consideration, earn-out term					4 years
Contingent consideration, earn-out payment					$ 50,000,000
Transitional Services Agreement
Business Acquisition [Line Items]
Expenses recognized							7,000,000
Wurl, Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 378,200,000
Consideration paid	219,300,000
Business combination, equity interests issued and issuable	137,400,000
Consideration transferred, liabilities incurred	$ 21,500,000
Indemnity holdback, period	18 months
Acquisition-related expense and transaction bonus	$ 1,900,000
Revenue of acquiree since acquisition date											$ 11,400,000
Pretax loss of acquiree since acquisition date											4,600,000
Wurl, Inc. | Class A Common Stock
Business Acquisition [Line Items]
Business combination, equity interests issued and issuable (in shares) | shares	2,579,692
Cash and equity interests issued and issuable, earnout	$ 600,000,000
MoPub
Business Acquisition [Line Items]
Consideration paid		$ 1,030,000,000
Acquisition-related expense and transaction bonus									14,400,000
Liabilities assumed in transaction							0		0		0
Expected tax deductible amount for goodwill							$ 694,500,000		$ 694,500,000		$ 694,500,000
Adjust GmbH
Business Acquisition [Line Items]
Consideration transferred			$ 967,800,000
Consideration paid			578,000,000
Consideration transferred, liabilities incurred			342,200,000
Revenue of acquiree since acquisition date						$ 21,600,000
Pretax loss of acquiree since acquisition date						$ (19,200,000)
Expected tax deductible amount for goodwill			692,500,000
Fair value of cash holdback			47,600,000
Transaction costs			3,100,000
Adjust GmbH | Reported Value Measurement
Business Acquisition [Line Items]
Consideration transferred			980,000,000
Business combination, equity interests issued and issuable			352,000,000
Consideration transferred, liabilities incurred			$ 50,000,000
2020 Asset Acquisition
Business Acquisition [Line Items]
Contingent consideration, costs								$ 40,700,000		$ 67,900,000

Acquisitions - Summary of the F

Acquisitions - Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 01, 2022	Jan. 01, 2022	Apr. 20, 2021	Jun. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill				$ 1,803,167	$ 966,427
Wurl, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	$ 400
Accounts receivable and other current assets	15,194
Goodwill	261,945
Property and equipment, net	363
Other assets	159
Accounts payable, accrued liabilities and other current liabilities	(12,854)
Deferred revenue	(209)
Deferred income tax liability	(3,031)
Total purchase consideration	378,167
Wurl, Inc. | Customer relationships
Business Acquisition [Line Items]
Intangible assets	$ 41,000
Estimated useful life	15 years
Wurl, Inc. | Developed Technology
Business Acquisition [Line Items]
Intangible assets	$ 60,500
Estimated useful life	6 years
Wurl, Inc. | Tradename
Business Acquisition [Line Items]
Intangible assets	$ 14,700
Estimated useful life	10 years
MoPub
Business Acquisition [Line Items]
Goodwill				632,472
Total purchase consideration				1,030,332
MoPub | Advertiser Relationships
Business Acquisition [Line Items]
Intangible assets				212,700
Estimated useful life		9 years
MoPub | Publisher Relationships
Business Acquisition [Line Items]
Intangible assets				123,300
Estimated useful life		9 years
MoPub | Developed Technology
Business Acquisition [Line Items]
Intangible assets				61,800
Estimated useful life		5 years
MoPub | Tradename
Business Acquisition [Line Items]
Intangible assets				$ 60
Estimated useful life		3 months
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 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
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

Acquisitions - Supplemental Pro

Acquisitions - Supplemental Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 776,231	$ 723,699	$ 1,410,684	$ 1,397,200
Net income (loss)	$ (20,810)	$ 20,974	$ (128,437)	$ (18,880)

Acquisitions - Pro Forma Adjust

Acquisitions - Pro Forma Adjustments to Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	$ (20,810)	$ 20,974	$ (128,437)	$ (18,880)
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)	0	(17,953)	(3,512)	(40,253)
A decrease (increase) in expenses related to the TSA
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	0	0	7,000	(7,000)
An increase in revenue related to fair value adjustment
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	0	538		538
An (increase) due to replacement stock awards
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	0	(2,693)	(1,221)	(6,159)
An (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)	0	(1,350)	0	(2,641)
A decrease (increase) in expenses related to transaction costs
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	179	2,903	16,899	(8,912)
A decrease in expenses related to transaction bonuses
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	1,101	10,000	1,101	8,899
A decrease (increase) in income tax provision
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Net income (loss)	$ (292)	$ 1,952	$ (4,625)	$ 12,671

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Goodwill [Line Items]
Number of operating segments | segment	2
Number of reportable segments | segment	2
Goodwill	$ 1,803,167	$ 966,427
Software Platform Revenue
Goodwill [Line Items]
Goodwill	1,500,000
Apps
Goodwill [Line Items]
Goodwill	$ 300,000

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Summary of Goodwill Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 966,427
Goodwill acquired	894,463
Foreign currency translation	(57,723)
Balance at end of period	$ 1,803,167

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net - Summary of Intangible Assets Acquired, Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Net Book Value	$ 2,028,974	$ 1,709,347
Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	2,850,134	2,302,253
Accumulated Amortization	(821,160)	(592,906)
Net Book Value	2,028,974	1,709,347
Total intangible assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	2,894,941	2,342,601
Accumulated Amortization	(864,121)	(631,630)
Net Book Value	$ 2,030,820	1,710,971
Apps | 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	$ 1,988,525	1,939,180
Accumulated Amortization	(701,772)	(529,012)
Net Book Value	$ 1,286,753	1,410,168
Apps | Short-Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	6 months
Gross Carrying Value	$ 44,807	40,348
Accumulated Amortization	(42,961)	(38,724)
Net Book Value	$ 1,846	1,624
Customer relationships | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	9 years 8 months 12 days
Gross Carrying Value	$ 511,338	145,870
Accumulated Amortization	(32,722)	(8,442)
Net Book Value	$ 478,616	137,428
User base | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	3 years 9 months 18 days
Gross Carrying Value	$ 68,817	68,817
Accumulated Amortization	(32,245)	(27,369)
Net Book Value	$ 36,572	41,448
License asset | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	1 year
Gross Carrying Value	$ 25,640	25,640
Accumulated Amortization	(8,547)	0
Net Book Value	$ 17,093	25,640
Developed technology | Long -Lived Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-Average Remaining Useful Life	5 years 1 month 6 days
Gross Carrying Value	$ 204,405	87,851
Accumulated Amortization	(36,269)	(21,435)
Net Book Value	$ 168,136	66,416
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	$ 51,409	34,895
Accumulated Amortization	(9,605)	(6,648)
Net Book Value	$ 41,804	$ 28,247

Goodwill and Intangible Asset_6

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 142,769	$ 101,234	$ 263,780	$ 186,628
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	126,237	95,200	230,856	177,385
Sales and marketing
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 16,532	$ 6,034	$ 32,924	$ 9,243

Common Stock (Details)

Common Stock (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2022	Feb. 28, 2022
Class of Stock [Line Items]
Stock repurchased, value	$ 210,830,000	$ 43,697,000
Class A Common Stock
Class of Stock [Line Items]
Stock repurchase program, authorized amount				$ 750,000,000
Stock repurchased (in shares)			6,643,412
Stock repurchased, value			$ 254,500,000

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Feb. 28, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense		$ 57,156		$ 27,144	$ 101,796	$ 57,103
Liabilities related to exercised options subject to repurchase			$ 1,400		$ 2,500
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)		2,388,544			3,293,317
Restricted stock units granted (in dollars per share)		$ 41.92			$ 49.63
Promissory Notes
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Employee promissory note settled	$ 20,900
Employee promissory note outstanding		$ 6,900			$ 6,900		$ 15,100
Minimum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award vesting period					4 years
Maximum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award 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)		1,774,999			1,774,999		2,884,999
Class A Common Stock | Promissory Notes
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Early exercised options with promissory note (in shares)			663,856		198,231
Class A Common Stock | Equity Option
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Exercised options subject to repurchase (in shares)			486,999		512,249
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
Number of shares available for future issuance (in shares)					39,000,000
Number of shares available for future issuance as a percentage of outstanding stock					5%
2021 Equity Incentive Plan | Class A Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Decrease in the number of shares reserved for future issuance (in shares)					2,000,000
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
Number of additional shares authorized (in shares)					2,000,000
2021 Partner Studio Incentive Plan | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of shares stock option (in shares)		452,517			577,772
Restricted stock units granted (in dollars per share)		$ 46.74			$ 47.05
2021 Partner Studio Incentive Plan | Minimum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award vesting period					4 years
2021 Partner Studio Incentive Plan | Maximum | Restricted Stock Units (RSUs)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award vesting period					5 years
Employee Stock Purchase Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
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]
Number of shares available for future issuance as a percentage of outstanding stock					1%
Percentage of eligible compensation eligible for participation in the stock purchase plan		15%			15%
Share based compensation by share based payment arrangement purchase price of the stock as a percentage of fair value					85%
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
Number of additional shares available for issuance (in shares)					7,800,000
Shares purchased for award (in shares)					107,781
2011 Equity Incentive Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense		$ 300		$ 300	$ 600	$ 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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 57,156	$ 27,144	$ 101,796	$ 57,103
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,706	473	3,758	582
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	13,432	2,221	20,351	4,040
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	25,890	13,573	46,519	20,038
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 15,128	$ 10,877	$ 31,168	$ 32,443

Earnings Per Share - Summary of

Earnings 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, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income (loss) attributable to AppLovin	$ (21,748)	$ (115,257)	$ 14,423	$ (10,521)	$ (137,005)	$ 3,902
Income attributable to convertible preferred stock	0		(902)		0	(731)
Income attributable to options exercised by promissory notes	0		(140)		0	(55)
Income attributable to unvested early exercised options	0		(61)		0	(12)
Income attributable to unvested RSA’s	0		(25)		0	(9)
Net income (loss) attributable to common stock	$ (21,748)		$ 13,295		$ (137,005)	$ 3,095
Denominator:
Weighted average common shares used to compute net loss per share attributable to common stockholders, basic (in shares)	373,912,724		335,619,207		372,932,509	279,326,624
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.06)		$ 0.04		$ (0.37)	$ 0.01
Numerator:
Net income (loss) attributable to AppLovin	$ (21,748)	$ (115,257)	$ 14,423	$ (10,521)	$ (137,005)	$ 3,902
Income attributable to convertible preferred stock	0		(859)		0	(693)
Income attributable to options exercises by promissory notes	0		(132)		0	(53)
Income attributable to unvested early exercised options	0		(59)		0	(11)
Income attributable to unvested RSA's	0		(24)		0	(8)
Net income (loss) attributable to common stock	$ (21,748)		$ 13,349		$ (137,005)	$ 3,137
Denominator:
Weighted average common shares used to compute net loss per share attributable to common stockholders, basic (in shares)	373,912,724		335,619,207		372,932,509	279,326,624
Weighted-average dilutive stock options, RSUs, and convertible security (in shares)	0		18,238,607		0	19,179,641
Weighted-average shares used in computing net income (loss) per share: Diluted (in shares)	373,912,724		353,857,814		372,932,509	298,506,265
Net income (loss) per share attributable to common stock: Diluted (in dollars per share)	$ (0.06)		$ 0.04		$ (0.37)	$ 0.01

Earnings Per Share - Summary _2

Earnings Per Share - Summary of Antidilutive Potential Common Shares (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	25,293,789	6,166,996
Stock options exercised for promissory notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	1,774,999	3,484,999
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)	0	616,003
Early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	512,249	1,291,975
Unvested RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	60,579	512,613
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	13,196,979	35,250
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	9,316,138	0
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares (in shares)	432,845	226,156

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Mar. 31, 2021	Feb. 12, 2021
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

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Number of positions eliminated, period percent	12%
Restructuring charges		$ 7.4