Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.00003 per share | |
Trading Symbol | APP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001751008 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 264,638,950 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 71,162,622 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 332,491 | $ 1,080,484 |
Accounts receivable, net | 849,140 | 702,814 |
Prepaid expenses and other current assets | 119,161 | 155,785 |
Total current assets | 1,300,792 | 1,939,083 |
Property and equipment, net | 102,156 | 78,543 |
Operating lease right-of-use assets | 52,998 | 60,379 |
Goodwill | 1,813,567 | 1,823,755 |
Intangible assets, net | 1,386,591 | 1,677,660 |
Other assets | 349,124 | 268,426 |
Total assets | 5,005,228 | 5,847,846 |
Current liabilities: | ||
Accounts payable | 281,103 | 273,196 |
Accrued and other current liabilities | 181,679 | 147,801 |
Licensed asset obligation | 13,389 | 15,254 |
Short-term debt | 215,000 | 33,310 |
Deferred revenue | 77,899 | 64,018 |
Operating lease liabilities | 13,800 | 14,334 |
Deferred acquisition costs, current | 22,604 | 31,045 |
Total current liabilities | 805,474 | 578,958 |
Long-term debt | 2,912,302 | 3,178,412 |
Operating lease liabilities, non-current | 46,887 | 54,153 |
Licensed asset obligation, non-current | 11,794 | 26,970 |
Other non-current liabilities | 132,981 | 106,676 |
Total liabilities | 3,909,438 | 3,945,169 |
Commitments and contingencies (Note 4) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 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, 335,783,928 (Class A 264,621,306 and Class B 71,162,622) and 373,873,683 (Class A 302,711,061 and Class B 71,162,622) shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 11 | 11 |
Additional paid-in capital | 2,174,658 | 3,155,748 |
Accumulated other comprehensive loss | (93,657) | (83,382) |
Accumulated deficit | (985,222) | (1,169,700) |
Total stockholders’ equity | 1,095,790 | 1,902,677 |
Total liabilities and stockholders’ equity | $ 5,005,228 | $ 5,847,846 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.00003 | $ 0.00003 |
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) | 335,783,928 | 373,873,683 |
Common stock, shares outstanding (in shares) | 335,783,928 | 373,873,683 |
Class A Common Stock | ||
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 264,621,306 | 302,711,061 |
Common stock, shares outstanding (in shares) | 264,621,306 | 302,711,061 |
Class B Common Stock | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 71,162,622 | 71,162,622 |
Common stock, shares outstanding (in shares) | 71,162,622 | 71,162,622 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 864,256 | $ 713,099 | $ 2,329,826 | $ 2,114,751 |
Costs and expenses: | ||||
Cost of revenue | 265,049 | 300,988 | 785,584 | 886,697 |
Sales and marketing | 212,352 | 196,785 | 607,755 | 719,014 |
Research and development | 159,288 | 122,059 | 441,563 | 389,417 |
General and administrative | 41,249 | 44,000 | 116,231 | 144,988 |
Total costs and expenses | 677,938 | 663,832 | 1,951,133 | 2,140,116 |
Income (loss) from operations | 186,318 | 49,267 | 378,693 | (25,365) |
Other income (expense): | ||||
Interest expense and loss on settlement of debt | (78,583) | (48,627) | (204,081) | (117,141) |
Interest income and other, net | 1,490 | 969 | 27,062 | 3,501 |
Total other expense, net | (77,093) | (47,658) | (177,019) | (113,640) |
Income (loss) before income taxes | 109,225 | 1,609 | 201,674 | (139,005) |
Provision for (benefit from) income taxes | 586 | (22,053) | 17,196 | (25,570) |
Net income (loss) | 108,639 | 23,662 | 184,478 | (113,435) |
Less: Net loss attributable to noncontrolling interest | 0 | (109) | 0 | (201) |
Net income (loss) attributable to AppLovin | 108,639 | 23,771 | 184,478 | (113,234) |
Less: Net income attributable to participating securities | 804 | 122 | 963 | 0 |
Net income (loss) attributable to AppLovin common stockholders - Basic | 107,835 | 23,649 | 183,515 | (113,234) |
Net income (loss) attributable to AppLovin common stockholders - Diluted | $ 107,869 | $ 23,653 | $ 183,545 | $ (113,234) |
Net income (loss) per share attributable to AppLovin common stockholders: | ||||
Basic (in dollars per share) | $ 0.32 | $ 0.06 | $ 0.51 | $ (0.30) |
Diluted (in dollars per share) | $ 0.30 | $ 0.06 | $ 0.50 | $ (0.30) |
Weighted average common shares used to compute net income (loss) per share attributable to AppLovin common stockholders: | ||||
Basic (in shares) | 341,435,759 | 369,389,170 | 357,009,609 | 371,736,763 |
Diluted (in shares) | 356,906,222 | 378,462,207 | 368,259,513 | 371,736,763 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 108,639 | $ 23,662 | $ 184,478 | $ (113,435) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment, net of tax | (17,127) | (11,794) | (10,275) | (94,691) |
Total other comprehensive loss, net of tax | (17,127) | (11,794) | (10,275) | (94,691) |
Comprehensive income (loss) including noncontrolling interest | 91,512 | 11,868 | 174,203 | (208,126) |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | (109) | 0 | (201) |
Comprehensive income (loss) attributable to AppLovin | $ 91,512 | $ 11,977 | $ 174,203 | $ (207,925) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity - USD ($) $ in Thousands | Total | Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Redeemable Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2021 | $ 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 | |||||
Balance at beginning of period at Dec. 31, 2021 | $ 2,138,090 | $ 11 | $ 3,160,487 | $ (45,454) | $ (976,954) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (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) | ||||
Repurchase of Class A common stock (in shares) | (893,556) | |||||
Repurchase of Class A common stock | (43,697) | (43,697) | ||||
Stock-based compensation | 44,377 | 44,377 | ||||
Total other comprehensive income, net of tax | (13,532) | (13,532) | ||||
Net loss | (115,257) | (115,257) | ||||
Balance at end of period (in shares) at Mar. 31, 2022 | 375,286,039 | |||||
Balance at end of period at Mar. 31, 2022 | 2,012,295 | $ 11 | 3,163,481 | (58,986) | (1,092,211) | |
Balance at beginning of period at Dec. 31, 2021 | 201 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss | 201 | |||||
Balance at end of period at Sep. 30, 2022 | 0 | |||||
Balance at beginning of period (in shares) at Dec. 31, 2021 | 375,089,360 | |||||
Balance at beginning of period at Dec. 31, 2021 | 2,138,090 | $ 11 | 3,160,487 | (45,454) | (976,954) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (113,234) | |||||
Balance at end of period (in shares) at Sep. 30, 2022 | 371,649,578 | |||||
Balance at end of period at Sep. 30, 2022 | 1,881,902 | $ 11 | 3,112,224 | (140,145) | (1,090,188) | |
Balance at beginning of period at Mar. 31, 2022 | 160 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss | (51) | |||||
Balance at end of period at Jun. 30, 2022 | 109 | |||||
Balance at beginning of period (in shares) at Mar. 31, 2022 | 375,286,039 | |||||
Balance at beginning of period at Mar. 31, 2022 | 2,012,295 | $ 11 | 3,163,481 | (58,986) | (1,092,211) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (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) | ||||
Repurchase of Class A common stock (in shares) | (5,749,856) | |||||
Repurchase of Class A common stock | (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 Class A common stock under employee stock purchase plan (in shares) | 107,781 | |||||
Issuance of Class A common stock under employee stock purchase plan | 3,663 | 3,663 | ||||
Stock-based compensation | 56,855 | 56,855 | ||||
Total other comprehensive income, net of tax | (69,365) | (69,365) | ||||
Net loss | (21,748) | (21,748) | ||||
Balance at end of period (in shares) at Jun. 30, 2022 | 373,184,049 | |||||
Balance at end of period at Jun. 30, 2022 | 1,907,175 | $ 11 | 3,149,474 | (128,351) | (1,113,959) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss | 109 | (109) | ||||
Balance at end of period at Sep. 30, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (in shares) | 1,360,814 | |||||
Stock issued in connection with equity awards | 6,293 | 6,293 | ||||
Shares withheld related to net share settlement (in shares) | (149,015) | |||||
Shares withheld related to net share settlement | (3,996) | (3,996) | ||||
Repurchase of Class A common stock (in shares) | (2,746,270) | |||||
Repurchase of Class A common stock | (84,353) | (84,353) | ||||
Stock-based compensation | 44,806 | 44,806 | ||||
Total other comprehensive income, net of tax | (11,794) | (11,794) | ||||
Net loss | 23,771 | 23,771 | ||||
Balance at end of period (in shares) at Sep. 30, 2022 | 371,649,578 | |||||
Balance at end of period at Sep. 30, 2022 | 1,881,902 | $ 11 | 3,112,224 | (140,145) | (1,090,188) | |
Balance at beginning of period at Dec. 31, 2022 | 0 | |||||
Balance at end of period at Mar. 31, 2023 | 0 | |||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 373,873,683 | |||||
Balance at beginning of period at Dec. 31, 2022 | 1,902,677 | $ 11 | 3,155,748 | (83,382) | (1,169,700) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (in shares) | 4,061,015 | |||||
Stock issued in connection with equity awards | 2,974 | 2,974 | ||||
Shares withheld related to net share settlement (in shares) | (1,281,849) | |||||
Shares withheld related to net share settlement | (19,167) | (19,167) | ||||
Repurchase of Class A common stock (in shares) | (5,396,617) | |||||
Repurchase of Class A common stock | (76,358) | (76,358) | ||||
Stock-based compensation | 82,966 | 82,966 | ||||
Total other comprehensive income, net of tax | 10,006 | 10,006 | ||||
Net loss | (4,518) | (4,518) | ||||
Balance at end of period (in shares) at Mar. 31, 2023 | 371,256,232 | |||||
Balance at end of period at Mar. 31, 2023 | 1,898,580 | $ 11 | 3,146,163 | (73,376) | (1,174,218) | |
Balance at beginning of period at Dec. 31, 2022 | 0 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss | 0 | |||||
Balance at end of period at Sep. 30, 2023 | 0 | |||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 373,873,683 | |||||
Balance at beginning of period at Dec. 31, 2022 | 1,902,677 | $ 11 | 3,155,748 | (83,382) | (1,169,700) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 184,478 | |||||
Balance at end of period (in shares) at Sep. 30, 2023 | 335,783,928 | |||||
Balance at end of period at Sep. 30, 2023 | 1,095,790 | $ 11 | 2,174,658 | (93,657) | (985,222) | |
Balance at beginning of period at Mar. 31, 2023 | 0 | |||||
Balance at end of period at Jun. 30, 2023 | 0 | |||||
Balance at beginning of period (in shares) at Mar. 31, 2023 | 371,256,232 | |||||
Balance at beginning of period at Mar. 31, 2023 | 1,898,580 | $ 11 | 3,146,163 | (73,376) | (1,174,218) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (in shares) | 4,053,303 | |||||
Stock issued in connection with equity awards | 3,677 | 3,677 | ||||
Shares withheld related to net share settlement (in shares) | (1,503,757) | |||||
Shares withheld related to net share settlement | (37,436) | (37,436) | ||||
Repurchase of Class A common stock (in shares) | (25,483,835) | |||||
Repurchase of Class A common stock | (503,448) | (503,448) | ||||
Issuance of Class A common stock under employee stock purchase plan (in shares) | 174,670 | |||||
Issuance of Class A common stock under employee stock purchase plan | 2,071 | 2,071 | ||||
Stock-based compensation | 76,753 | 76,753 | ||||
Total other comprehensive income, net of tax | (3,154) | (3,154) | ||||
Net loss | 80,357 | 80,357 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 348,496,613 | |||||
Balance at end of period at Jun. 30, 2023 | 1,517,400 | $ 11 | 2,687,780 | (76,530) | (1,093,861) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Net loss | 0 | |||||
Balance at end of period at Sep. 30, 2023 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued in connection with equity awards (in shares) | 4,621,926 | |||||
Stock issued in connection with equity awards | 11,319 | 11,319 | ||||
Shares withheld related to net share settlement (in shares) | (1,549,778) | |||||
Shares withheld related to net share settlement | (59,243) | (59,243) | ||||
Repurchase of Class A common stock (in shares) | (15,784,833) | |||||
Repurchase of Class A common stock | (573,787) | (573,787) | ||||
Stock-based compensation | 108,589 | 108,589 | ||||
Total other comprehensive income, net of tax | (17,127) | (17,127) | ||||
Net loss | 108,639 | 108,639 | ||||
Balance at end of period (in shares) at Sep. 30, 2023 | 335,783,928 | |||||
Balance at end of period at Sep. 30, 2023 | $ 1,095,790 | $ 11 | $ 2,174,658 | $ (93,657) | $ (985,222) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income (loss) | $ 184,478 | $ (113,435) |
Adjustments to reconcile net income (loss) to operating activities: | ||
Amortization, depreciation and write-offs | 369,897 | 445,507 |
Stock-based compensation | 275,058 | 143,943 |
Change in operating right-of-use asset | 11,732 | 13,725 |
Amortization of debt issuance costs and discount | 9,663 | 9,685 |
Loss on settlement of debt | 4,337 | 0 |
Other | (3,906) | 2,133 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | (146,796) | (139,350) |
Prepaid expenses and other current assets | 28,695 | (70,242) |
Other assets | (58,179) | (4,616) |
Accounts payable | 7,955 | (7,881) |
Operating lease liabilities | (12,253) | (15,345) |
Accrued and other liabilities | 32,416 | (2,645) |
Deferred revenue | 14,425 | (11,905) |
Net cash provided by operating activities | 717,522 | 249,574 |
Investing Activities | ||
Acquisitions, net of cash acquired | (51,816) | (1,335,698) |
Purchase of non-marketable equity securities | (16,934) | (56,546) |
Capitalized software development costs | (6,523) | (4,546) |
Purchase of property and equipment | (4,002) | (621) |
Proceeds from sale of assets | 8,250 | 3,657 |
Net cash used in investing activities | (71,025) | (1,393,754) |
Financing Activities | ||
Repurchases of stock | (1,153,593) | (338,880) |
Principal repayments of debt | (490,494) | (17,482) |
Payment of withholding taxes related to net share settlement | (115,846) | 0 |
Payments of licensed asset obligation | (15,254) | (17,374) |
Principal payments on finance leases | (16,191) | (18,099) |
Payments of deferred acquisition costs | (11,503) | (104,998) |
Payment of debt issuance cost | (4,545) | 0 |
Proceeds from issuance of debt | 210,281 | 0 |
Proceeds from revolving credit facility | 185,000 | 0 |
Proceeds from exercise of stock options | 17,807 | 21,733 |
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 2,071 | 3,663 |
Net cash used in financing activities | (1,392,267) | (471,437) |
Effect of foreign exchange rate on cash and cash equivalents | (2,223) | (11,379) |
Net decrease in cash and cash equivalents | (747,993) | (1,626,996) |
Cash, cash equivalents and restricted cash equivalents at beginning of the period | 1,080,484 | 2,570,504 |
Cash and cash equivalents at end of the period | 332,491 | 943,508 |
Supplemental non-cash investing and financing activities disclosures: | ||
Right-of-use assets acquired under finance leases | 40,666 | 37,433 |
Right-of-use assets acquired under operating leases | 4,576 | 3,400 |
Acquisitions not yet paid | 0 | 40,791 |
Issuance of common stock in connection with acquisitions | 0 | 137,422 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net | 184,600 | 107,650 |
Cash paid for income taxes, net of refunds | $ 12,749 | $ 58,770 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business AppLovin Corporation (the “Company” or “AppLovin”) was incorporated in the state of Delaware on July 18, 2011. The Company is a leader in the mobile app industry with a focus on building a software-based platform for mobile app developers to improve the marketing and monetization of their apps. The Company also has a globally diversified portfolio of apps—free-to-play mobile games that it operates through its own or partner studios. The Company 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, 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 February 28, 2023. The condensed consolidated balance sheet data as of December 31, 2022 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 nine months ended September 30, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2023 or any other period. Basis of Consolidation The Company's condensed consolidated financial statements include accounts and operations of the Company and the entities in which the Company has a controlling financial interest. 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 variable interest entities ("VIE"), through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if it 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. The Company does not consolidate a VIE when the Company is not deemed 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. Use of Estimates The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. The Company bases its estimates on assumptions, both historical and forward-looking, that are believed to be reasonable. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to fair values of intangible assets and goodwill, useful lives of intangible assets and property and equipment, expected period of consumption of virtual goods, expected life of paying users, income and indirect taxes, contingent liabilities, evaluation of recoverability of intangible assets and long-lived assets, goodwill impairment, and fair value of derivatives and other financial instruments. These estimates are inherently subject to judgment and actual results could differ materially from those estimates. Recent Accounting Pronouncements (Issued and 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 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue from Contracts with Customers The Company generates Software Platform and Apps revenue. Software Platform revenue is generated primarily from fees collected from advertisers and advertising networks who use the Software Platform. Apps revenue consists of in-app purchase ("IAP") revenue generated from in-app purchases made by users within the Company’s apps (“Apps”), and in-app advertising ("IAA") revenue generated from advertisers that purchase ad inventory from Apps. Software Platform Revenue The vast majority of the Software Platform Revenue is generated through AppDiscovery and MAX, which provide the technology to match advertisers and owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The 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. Substantially all of the Company's contracts with customers are fully cancellable at any time or upon short notice. Software Platform Revenue is generated by placing ads on mobile applications owned by Publishers. The Company’s performance obligation is to provide customers 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, 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 either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers. The Company recognizes Software Platform Revenue when the agreed upon action is completed or when the ad is displayed to users. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Software Platform Revenue also includes revenue generated by the Company's mobile application tracking and attribution solutions that is recognized ratably over the subscription period, generally up to twelve months. Apps Revenue In-App Purchase Revenue IAP 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. IAP 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 five In-App Advertising Revenue IAA 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. The Company presents taxes collected from customers and remitted to governmental authorities on a net basis. Disaggregation of Revenue The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Software Platform Revenue $ 504,452 $ 306,592 $ 1,265,273 $ 742,972 In-App Purchase Revenue 247,309 272,437 732,262 915,177 In-App Advertising Revenue 112,495 134,070 332,291 456,602 Total Apps Revenue 359,804 406,507 1,064,553 1,371,779 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 Revenue disaggregated by geography, based on user location, consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 500,586 $ 437,679 $ 1,393,625 $ 1,299,624 Rest of the World 363,670 275,420 936,201 815,127 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 Contract Balances Contract liabilities consist of deferred revenue related to payments received in advance of the satisfaction of performance obligations. During the three months ended September 30, 2023 and 2022, the Company recognized $48.4 million and $48.4 million of revenue that was included in deferred revenue as of June 30, 2023 and 2022, respectively. During the nine months ended September 30, 2023 and 2022, the Company recognized $62.5 million and $78.1 million of revenue that was included in deferred revenue as of December 31, 2022 and 2021, respectively. Unsatisfied Performance Obligations Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less. Publisher Bonuses In the first quarter of 2022, the Company paid or promised to pay a total of $209.6 million in bonuses to publishers consisting primarily of non-recurring bonuses to migrate publishers to MAX, the Company's in-app mediation platform. The Company accounted for such publisher bonuses as a reduction to revenue since the publishers receiving such bonuses are also customers of the Company. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements The following table sets forth the Company’s financial instruments that are measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): As of September 30, 2023 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Money market deposit accounts Cash and cash equivalents $ 1,332 $ 1,332 $ — $ — Interest rate swap Prepaid expenses and other current assets $ 1,606 $ — $ 1,606 $ — Total financial assets $ 2,938 $ 1,332 $ 1,606 $ — As of December 31, 2022 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Money market funds (1) Cash and cash equivalents $ 604,399 $ 604,399 $ — $ — Interest rate swaps Prepaid expenses and other current assets $ 7,319 $ — $ 7,319 $ — Total financial assets $ 611,718 $ 604,399 $ 7,319 $ — (1) Includes balances in money market deposit accounts of $524.2 million as of December 31, 2022. Derivatives Not Designated as Hedging Instruments In October 2022 and March 2023, the Company entered into multiple pay-fixed receive-variable interest rate swaps as part of its interest rate risk management strategy in connection with the term loans under a certain credit agreement, which was originally entered in August 2018 and has been subsequently amended multiple times. The Company elected to not designate the interest rate swaps as hedging instruments for accounting purposes and recorded both realized and unrealized gains and losses associated with the interest rate swaps immediately through earnings in interest expense in the Company's condensed consolidated statement of operations. The fair value of the interest rate swaps are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of the interest rate swaps. The Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. In June 2023, the Company settled the March 2023 interest rate swaps with the counterparties and received $12.2 million in cash. The net cash proceeds received from the settlement of the interest rate swaps and net interest paid or received are presented in net cash provided by operating activities and the supplemental disclosure of cash paid for interest, net in the Company's condensed consolidated statement of cash flows. As of September 30, 2023, the remaining interest rate swap had a notional amount of $1.7 billion and matures on October 31, 2023. In relation to these interest rate swaps, the Company recorded a net gain of $15.8 million during the nine months ended September 30, 2023. The net gain was not material for the three months ended September 30, 2023. Non-Marketable Equity Securities Measured at Net Asset Value The Company held equity interests in certain private equity funds of $54.2 million a nd $32.3 million as of September 30, 2023 and December 31, 2022, respectively, which are measured using the net asset value practical expedient. Under the net asset value practical expedient, the Company records investments based on the 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 $54.2 million and the unfunded commitments of $41.1 million as of September 30, 2023. During the three and nine months ended September 30, 2023, the Company made total capital contributions of $0.1 million and $16.9 million related to these investments. The unrealized gains related to these investments were $2.3 million and $7.3 million, for the three and nine months ended September 30, 2023, respectively. The unrealized gains and losses were not material for the three and nine months ended September 30, 2022. Non-Marketable Equity Securities Measured at Fair Value on a Non-Recurring Basis |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of September 30, 2023, the Company's non-cancelable minimum purchase commitments consisted primarily of a certain arrangement related to cloud platform services. In May 2022, the Company entered into a new order form under an existing master agreement that required the Company to purchase at least $550.0 million of cloud services through May 2025. During the nine months ended September 30, 2023, the Company made payments of $167.2 million under this arrangement, with $285.7 million of this commitment unpaid as of September 30, 2023. In addition, the Company had total unfunded commitments of $41.1 million related to investments in certain private equity funds. For additional information see Note 3 – Financial Instruments and Fair Value Measurements. 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 September 30, 2023, the Company had outstanding letters of credit in the aggregate amount of $6.3 million, which were issued as security for certain leased office facilities under the Credit Agreement. These letters of credit have never been drawn upon. Legal Proceedings The Company is involved from time to time in litigation, claims, and proceedings. The outcomes of the Company’s legal proceedings are inherently unpredictable and subject to significant uncertainty. The Company records a liability when it is probable that a loss has been incurred and the amount can be reasonably estimated. If it is determined that a loss is reasonably possible and the loss or range of loss can be estimated, the reasonably possible loss is disclosed. The Company evaluates developments in legal matters that could affect the amount of liability that has been previously accrued, and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine the likelihood of matters and the estimated amount of a loss 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 September 30, 2023, the Company did not have any material indemnification claims that were probable or reasonably possible. Non-income Taxes |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions 2023 Acquisitions During the three and nine months ended September 30, 2023, the Company recognized total earn-out costs of $9.2 million and $52.2 million, respectively, related to asset acquisitions closed in 2021 and prior. No other acquisitions were completed during the three and nine months ended September 30, 2023. 2022 Acquisitions Business Combinations MoPub — On January 1, 2022, the Company completed its acquisition from Twitter, Inc. of certain assets that comprised its MoPub business for a total purchase price of $1.03 billion in cash. The acquisition allowed the Company to integrate certain product features of the MoPub platform into MAX, the Company's 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 allocation of the purchase consideration to the fair value of the assets acquired (in thousands): 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 income approach was used to determine the fair value of the advertiser relationships, publisher relationships, developed technology and tradename. Goodwill represents the excess of the purchase price over the 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, a tax deductible goodwill of $645.1 million was generated as a result of this acquisition. No liabilities were assumed in the transaction. 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 first quarter of 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. Wurl —On April 1, 2022, the Company completed its acquisition of all of the equity interests of Wurl, Inc. ("Wurl"), a connected TV (CTV) software platform company, 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 $22.7 million, with a present value of $21.5 million at the closing of the acquisition, relating to an indemnity holdback amount to be paid in 18 months following the transaction close date, less any eligible claims against Wurl paid by AppLovin. The transaction allowed 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 allocation of the purchase consideration 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 264,149 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 (5,235) Total purchase consideration $ 378,167 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, 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. In April 2023, the Company amended the multi-year performance-based incentive plan into a one-year plan for 2023, under which the Company may be obligated to issue up to a total of $90.0 million in additional shares of the Company's Class A common stock, contingent upon Wurl’s achievement of certain revenue and other performance targets and the continued employment of the key employees. The Company’s condensed consolidated statement of operations for nine months ended September 30, 2022 includes Wurl's revenue of $22.7 million and pre-tax loss of $8.7 million for the period from the acquisition date of April 1, 2022 to September 30, 2022. The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, the MoPub business and Wurl, as if they had been acquired as of January 1, 2021 (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Revenue $ 713,099 $ 2,123,783 Net income (loss) $ 23,662 $ (104,775) 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 September 30, 2022 Nine Months Ended September 30, 2022 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 $ — $ (3,512) A decrease in expenses related to the TSA $ — $ 7,000 An (increase) due to replacement stock awards $ — $ (1,221) A decrease in expenses related to transaction costs $ — $ 16,899 A decrease in expenses related to transaction bonuses $ — $ 1,101 An (increase) in income tax provision $ — $ (4,625) Asset Acquisitions During the three and nine months ended September 30, 2022, the Company recognized total earn-out costs of $23.2 million and $98.7 million, respectively, related to asset acquisitions closed in 2021 and prior. No other asset acquisitions were completed during the three and nine months ended September 30, 2022. Assets Held for Sale |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the changes in the carrying amount of goodwill by reporting unit (in thousands): Software Platform Apps Total December 31, 2022 $ 1,478,014 $ 345,741 $ 1,823,755 Foreign currency translation (10,188) — (10,188) September 30, 2023 $ 1,467,826 $ 345,741 $ 1,813,567 Intangible assets, net consisted of the following (in thousands): Weighted- As of September 30, 2023 As of December 31, 2022 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 3.9 $ 1,830,329 $ (1,083,524) $ 746,805 $ 1,790,820 $ (836,375) $ 954,445 Customer relationships 8.5 513,182 (97,174) 416,008 515,084 (58,881) 456,203 User base 2.5 68,817 (44,436) 24,381 68,817 (37,122) 31,695 License asset 2.3 59,207 (27,478) 31,729 59,207 (16,901) 42,306 Developed technology 3.9 205,205 (79,038) 126,167 206,060 (53,879) 152,181 Other 4.5 60,100 (18,599) 41,501 53,933 (13,103) 40,830 Total long-lived intangible assets 2,736,840 (1,350,249) 1,386,591 2,693,921 (1,016,261) 1,677,660 Short-lived intangible assets: Apps 0.3 47,640 (47,480) 160 45,791 (44,838) 953 Total intangible assets $ 2,784,480 $ (1,397,729) $ 1,386,751 $ 2,739,712 $ (1,061,099) $ 1,678,613 As of September 30, 2023 and December 31, 2022, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 93,398 $ 111,259 $ 288,180 $ 342,115 Sales and marketing 16,829 16,619 50,397 49,543 Total $ 110,227 $ 127,878 $ 338,577 $ 391,658 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity 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, to facilitate repurchases of shares. In May and August 2023, the Company's Board authorized increases to the repurchase program of $296.0 million and $447.6 million, respectively. The repurchase program does not obligate the Company to acquire any particular amount of Class A common stock, has no expiration date and may be modified, suspended, or terminated at any time at the Company's discretion. The Company retires its Class A common stock upon repurchase, and records any excess of the cost of the repurchased shares over their par value as a reduction to additional paid-in capital, or in the absence of additional paid-in capital, to accumulated deficit. During the nine months ended September 30, 2023 and 2022, the Company repurchased 46,665,285 and 9,042,407 shares of Class A common stock for an aggregate amount, including commissions and fees, of $1,153.6 million and $338.8 million, respectively. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company maintains three equity compensation plans that provide for the issuance of shares of its common stock to the Company’s employees, directors, consultants and other service providers: the 2021 Equity Incentive Plan (the "2021 Plan"), the 2021 Partner Studio Incentive Plan, and the 2021 Employee Stock Purchase Plan (the "ESPP"). In March 2023, the Company’s Board of Directors (the "Board"), upon recommendation of the Compensation Committee of the Board (the "Compensation Committee"), granted to each of Adam Foroughi, the Company’s CEO and Chairperson, and Vasily Shikin, the Company’s CTO, 6,902,000 performance-based RSUs (“PSUs”), and delegated authority to Mr. Foroughi to grant up to additional 3,451,000 PSUs to non-executive employees (the "Additional Participants") in consultation with the chair of the Compensation Committee under the 2021 Plan. The PSUs are divided into five equal tranches that are eligible to vest based on the achievement of certain stock price targets (see below), measured based on the minimum closing price of the Company’s Class A common stock over a consecutive 30 trading day period during the five-year performance period beginning on the date of grant, subject to the recipient’s continued employment through the applicable vesting date. In the event of a change in control of the Company during the performance period, any unvested PSUs are eligible to vest a pro-rated amount if the per share transaction price in the change in control is between two stock price targets that have not previously been achieved, subject to the recipient’s continued employment through the date immediately prior to the change in control. PSUs for Mr. Foroughi and Mr. Shikin may continue to vest for up to one year after termination of employment if certain conditions are met. In April 2023, the remaining 3,451,000 PSUs were granted to the Additional Participants. The following table presents the number of PSUs that are eligible to vest based on the achievement of the respective stock price targets for each of Mr. Foroughi, Mr. Shikin and the Additional Participants (in aggregate): PSUs Eligible to Vest Company Stock Price Target Adam Foroughi Vasily Shikin Additional Participants $ 36.00 1,380,400 1,380,400 690,200 $ 46.75 1,380,400 1,380,400 690,200 $ 57.50 1,380,400 1,380,400 690,200 $ 68.25 1,380,400 1,380,400 690,200 $ 79.00 1,380,400 1,380,400 690,200 6,902,000 6,902,000 3,451,000 The weighted-average grant date fair value of the PSUs for Mr. Foroughi, Mr. Shikin and the Additional Participants was $7.60, $6.03, and $8.76 per share, respectively. The Company used a Monte Carlo simulation model to calculate the grant date fair value of the PSUs and the derived service period for each of the five vesting tranches, which is the measure of the expected time to achieve the respective stock price target, as described above. The Monte Carlo simulation model incorporates the likelihood of achieving the stock price targets and requires the input of assumptions including the underlying stock price, expected volatility, expected term, risk-free rate and dividend yield. The Company also applied a discount for lack of marketability to the value of PSUs for employees other than the CEO as the shares issued for these awards are subject to a holding period of approximately one year. The Company will recognize stock-based compensation expense over the derived service period of each of the five vesting tranches, ranging from 1.7 to 3.1 years, using the accelerated attribution method. If the stock price targets are met sooner than the derived service period, the Company will adjust its stock-based compensation expense to reflect the cumulative expense associated with the vested awards. Subject to continued employment of the recipients, the Company will recognize stock-based compensation expense over the derived service period, regardless of whether the stock price targets are achieved. In September 2023, 3,451,000 PSUs vested upon the achievement of the stock price target of $36.00 per share, resulting in a stock-based compensation expense of $25.7 million recorded for such PSUs during the three months ended September 30, 2023. During the nine months ended September 30, 2023, the Company granted 4,631,285 restricted stock units ("RSUs") to certain employees under the 2021 Plan at the weighted average grant date fair value of $14.14 per RSU. These awards vest based on a service condition that becomes satisfied over generally one year. In February 2023, the Board approved an increase to the maximum number of shares that can be purchased in each purchase period from 590 to 3,500 shares of Class A common stock. During the nine months ended September 30, 2023, 174,670 shares of Class A common stock were purchased under the ESPP. Stock-based compensation expense is attributed to the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 1,309 $ 1,230 $ 3,942 $ 4,988 Sales and marketing 26,025 10,035 62,121 30,386 Research and development 70,462 21,569 176,337 68,088 General and administrative 13,043 9,313 32,658 40,481 Total $ 110,839 $ 42,147 $ 275,058 $ 143,943 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ 108,639 $ 23,771 $ 184,478 $ (113,234) Less: Income attributable to options exercises by promissory notes (442) (102) (720) — Income attributable to common stock subject to share repurchase agreements (360) — (228) — Income attributable to unvested early exercised options (2) (18) (15) — Income attributable to unvested RSAs — (2) — — Net income (loss) attributable to AppLovin common stockholders—Basic $ 107,835 $ 23,649 $ 183,515 $ (113,234) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 341,435,759 369,389,170 357,009,609 371,736,763 Net income (loss) per share attributable to common stock—Basic $ 0.32 $ 0.06 $ 0.51 $ (0.30) Diluted EPS Numerator: Net income (loss) attributable to AppLovin 108,639 23,771 184,478 (113,234) Less: Income attributable to options exercises by promissory notes (423) (99) (698) — Income attributable to common stock subject to share repurchase agreements (345) — (220) — Income attributable to unvested early exercised options (2) (17) (15) — Income attributable to unvested RSAs — (2) — — Net income (loss) attributable to AppLovin common stockholders—Diluted $ 107,869 $ 23,653 $ 183,545 $ (113,234) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 341,435,759 369,389,170 357,009,609 371,736,763 Weighted-average dilutive stock awards 15,470,463 9,073,037 11,249,904 — Weighted-average shares used in computing net income (loss) per share—Diluted 356,906,222 378,462,207 368,259,513 371,736,763 Net income (loss) per share attributable to AppLovin common stockholders—Diluted $ 0.30 $ 0.06 $ 0.50 $ (0.30) The following table presents the forms of antidilutive potential common shares: As of September 30, 2023 2022 Stock options exercised for promissory notes 1,399,999 1,399,999 Early exercised stock options 5,736 191,748 Stock options 613,968 12,168,796 Unvested RSUs 4,747,127 9,318,132 ESPP — 413,829 Total antidilutive potential common shares 6,766,830 23,492,504 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
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 the 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 the estimated annual effective tax rate and makes a year-to-date adjustment to the tax provision as necessary. The Company’s calendar year 2023 annual effective tax rate differs from the U.S. statutory rate primarily due to jurisdictional mix of earnings, stock-based compensation expense, foreign derived intangible income deduction, and global intangible low-taxed income. During the nine months ended September 30, 2023, there were no material changes to the Company's unrecognized tax benefits, and the Company does not expect material changes in unrecognized tax benefits within the next twelve months. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company determines its operating segments based on how its chief operating decision maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Company's two operating and reportable segments are as follows: • Software Platform : Software Platform generates revenue primarily from fees paid by advertisers for the placement of ads on mobile applications owned by Publishers. • Apps : Apps generates revenue when a user of one of the Apps makes an in-app purchase and when an advertiser purchases the digital advertising inventory of the Company's portfolio of Apps. The CODM evaluates the performance of each operating segment using revenue and segment adjusted EBITDA. The Company defines segment adjusted EBITDA as revenue less expenses, excluding depreciation and amortization and certain items that the Company does not believe are reflective of the operating segments’ core operations. Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities and general and administrative overhead. Revenue and expenses exclude transactions between the Company's operating segments. The CODM does not evaluate operating segments using asset information, and, accordingly, the Company does not report asset information by segment. The following table provides information about the Company's reportable segments and a reconciliation of the total segment adjusted EBITDA to income (loss) before income taxes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Software Platform $ 504,452 $ 306,592 $ 1,265,273 $ 742,972 Apps 359,804 406,507 1,064,553 1,371,779 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 Segment Adjusted EBITDA: Software Platform $ 364,117 $ 190,256 $ 855,697 $ 622,555 Apps 55,174 67,381 170,806 181,055 Total Segment Adjusted EBITDA $ 419,291 $ 257,637 $ 1,026,503 $ 803,610 Interest expense and loss on settlement of debt $ (78,583) $ (48,627) $ (204,081) $ (117,141) Interest income and other, net 771 3,604 26,359 8,473 Amortization, depreciation and write-offs (121,797) (163,830) (369,897) (445,507) Non-operating foreign exchange gain 613 406 1,159 1,683 Stock-based compensation (110,839) (42,147) (275,058) (143,943) Acquisition-related expense (231) (4,317) (995) (21,052) Publisher bonuses — — — (209,635) MoPub acquisition transition services — — — (6,999) Restructuring costs — (1,117) (2,316) (8,494) Income (loss) before income taxes $ 109,225 $ 1,609 $ 201,674 $ (139,005) |
Credit Agreement
Credit Agreement | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement The Company is a party to a certain credit agreement (the “Credit Agreement”), which provides for senior secured term loans and a revolving credit facility. In January 2023, the Company entered into Amendment No. 7 to the Credit Agreement to transition the benchmark interest rate from the London Interbank Offered Rate (“LIBOR”) to the Term Secured Overnight Financing Rate (“SOFR”), which included a 10 basis-point credit spread adjustment. In June 2023, the Company entered into Amendment No. 8 to the Credit Agreement to extend the maturity date with respect to the revolving credit facility to the earlier of 91 days prior to the final maturity of any term loan under the Credit Agreement (unless all term loans with a maturity date earlier than October 25, 2028 have been repaid in full prior to such date) and June 12, 2028, and increase the maximum commitment of the revolving credit facility by $10.0 million to an aggregate of $610.0 million. The other material terms of the Credit Agreement were unchanged. The Company incurred $4.0 million in debt issuance costs in connection with Amendment No. 8 which were deferred and are being recognized as interest expense over the term of revolving credit facility. These costs were included in "Other assets" in the Company's condensed consolidated balance sheet. In August 2023, the Company entered into Amendment No. 9 to the Credit Agreement to refinance certain term loans in the aggregate principal amount of $1.7 billion with a maturity date of August 15, 2025. The refinanced term loans have (a) a principal amount of $1.5 billion, to be repaid in equal quarterly installments of $3.8 million with the remaining balance due on August 16, 2030, (b) an interest rate “floor” of 50 basis points if such loans bear interest based on SOFR (such loans, “Term SOFR Loans”), and (c) an applicable margin for Term SOFR Loans equal to 3.10% (or 2.00% for base rate loans). The other material terms of the refinanced term loans remain unchanged. The Company evaluated the refinancing transaction described above on a creditor-by-creditor basis to determine the appropriate application of modification or extinguishment accounting under the provisions of ASC 470-50. As a result, the Company recorded a loss on extinguishment of debt of $4.3 million and an expense for third-party costs related to modification of debt of $11.1 million, in interest expense and loss on debt settlement and interest income and other, net, respectively, in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2023. The Company recorded the refinanced term loans at face value less unamortized debt discount and issuance cost of $20.1 million, which is subject to amortization over the term of the refinanced term loans using the effective interest method. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In May 2023, the Company repurchased 15,952,381 shares of its Class A common stock from KKR Denali Holdings L.P. ("KKR Denali") in a private transaction at a price per share equal to $21.00, for an aggregate purchase price of $335.0 million under the Company's share repurchase program. In August 2023, the Company repurchased 15,000,000 shares of its Class A common stock from KKR Denali in a private transaction at a price per share equal to $36.85, for an aggregate purchase price of $552.8 million under the Company's share repurchase program. See Note 7 – Equity for additional information on the share repurchase program. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net loss | $ 108,639 | $ 80,357 | $ (4,518) | $ 23,771 | $ (21,748) | $ (115,257) | $ 184,478 | $ (113,234) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Herald Chen [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 7, 2023, Herald Chen, our President, Chief Financial Officer and a member of our board of directors terminated a Rule 10b5-1 trading plan, which was previously adopted on June 14, 2023 and intended to satisfy the affirmative defense in Rule 10b5-1(c). The terminated trading plan provided for the potential sale of up to an aggregate of 1,200,000 shares of our Class A common stock held by Mr. Chen and was scheduled to be effective from January 1, 2024 until December 31, 2025, or earlier if all transactions under the trading plan were completed. Prior to its termination, Mr. Chen had not sold any shares of our Class A common stock under the trading plan. | |
Victoria Valenzuela [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 31, 2023, Victoria Valenzuela, our Chief Legal Officer, terminated a Rule 10b5-1 trading plan, which was previously adopted on December 19, 2022 and intended to satisfy the affirmative defense in Rule 10b5-1(c). The terminated trading plan provided for the potential sale of up to an aggregate of 150,000 shares of our Class A common stock held by Ms. Valenzuela and additional shares of our Class A common stock issuable upon vesting and settlement of RSUs granted to Ms. Valenzuela subsequent to the adoption of the trading plan and prior to February 21, 2023. The terminated trading plan was scheduled to be effective from February 13, 2023 until December 31, 2023, or earlier if all transactions under the trading plan were completed. On September 11, 2023, Ms. Valenzuela entered into a Rule 10b5-1 trading plan providing for the potential sale of up to an aggregate of 90,000 shares of our Class A common stock held by Ms. Valenzuela and additional shares of our Class A common stock issuable upon vesting and settlement of RSUs granted to Ms. Valenzuela subsequent to the adoption of the trading plan and prior to December 31, 2023. The trading plan is scheduled to be effective until May 31, 2025, or earlier if all transactions under the trading plan are completed. The trading plan is intended to satisfy the affirmative defense in Rule 10b5-1(c). | |
Chen June 2023 Plan [Member] | Herald Chen [Member] | ||
Trading Arrangements, by Individual | ||
Name | Herald Chen | |
Title | President, Chief Financial Officer and a member of our board of directors | |
Adoption Date | June 14, 2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | August 7, 2023 | |
Aggregate Available | 1,200,000 | 1,200,000 |
Valenzuela Plan, December 2022 [Member] | Victoria Valenzuela [Member] | ||
Trading Arrangements, by Individual | ||
Name | Victoria Valenzuela | |
Title | Chief Legal Officer, | |
Adoption Date | December 19, 2022 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | August 31, 2023 | |
Aggregate Available | 150,000 | 150,000 |
Valenzuela Plan, September 2023 [Member] | Victoria Valenzuela [Member] | ||
Trading Arrangements, by Individual | ||
Name | Victoria Valenzuela | |
Title | Chief Legal Officer, | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 11, 2023 | |
Arrangement Duration | 537 days | |
Aggregate Available | 90,000 | 90,000 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 February 28, 2023. The condensed consolidated balance sheet data as of December 31, 2022 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 nine months ended September 30, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2023 or any other period. |
Basis of Consolidation | Basis of Consolidation The Company's condensed consolidated financial statements include accounts and operations of the Company and the entities in which the Company has a controlling financial interest. 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 variable interest entities ("VIE"), through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if it 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. The Company does not consolidate a VIE when the Company is not deemed 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. |
Use of Estimates | Use of Estimates The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. The Company bases its estimates on assumptions, both historical and forward-looking, that are believed to be reasonable. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to fair values of intangible assets and goodwill, useful lives of intangible assets and property and equipment, expected period of consumption of virtual goods, expected life of paying users, income and indirect taxes, contingent liabilities, evaluation of recoverability of intangible assets and long-lived assets, goodwill impairment, and fair value of derivatives and other financial instruments. These estimates are inherently subject to judgment and actual results could differ materially from those estimates. |
Recent Accounting Pronouncements (Issued and Adopted) | Recent Accounting Pronouncements (Issued and 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 |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company generates Software Platform and Apps revenue. Software Platform revenue is generated primarily from fees collected from advertisers and advertising networks who use the Software Platform. Apps revenue consists of in-app purchase ("IAP") revenue generated from in-app purchases made by users within the Company’s apps (“Apps”), and in-app advertising ("IAA") revenue generated from advertisers that purchase ad inventory from Apps. Software Platform Revenue The vast majority of the Software Platform Revenue is generated through AppDiscovery and MAX, which provide the technology to match advertisers and owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The 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. Substantially all of the Company's contracts with customers are fully cancellable at any time or upon short notice. Software Platform Revenue is generated by placing ads on mobile applications owned by Publishers. The Company’s performance obligation is to provide customers 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, 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 either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers. The Company recognizes Software Platform Revenue when the agreed upon action is completed or when the ad is displayed to users. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. Software Platform Revenue also includes revenue generated by the Company's mobile application tracking and attribution solutions that is recognized ratably over the subscription period, generally up to twelve months. Apps Revenue In-App Purchase Revenue IAP 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. IAP 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 five In-App Advertising Revenue IAA 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. The Company presents taxes collected from customers and remitted to governmental authorities on a net basis. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Type | The following table presents revenue disaggregated by segment and type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Software Platform Revenue $ 504,452 $ 306,592 $ 1,265,273 $ 742,972 In-App Purchase Revenue 247,309 272,437 732,262 915,177 In-App Advertising Revenue 112,495 134,070 332,291 456,602 Total Apps Revenue 359,804 406,507 1,064,553 1,371,779 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 |
Schedule of Revenue Disaggregated by Geography | Revenue disaggregated by geography, based on user location, consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 500,586 $ 437,679 $ 1,393,625 $ 1,299,624 Rest of the World 363,670 275,420 936,201 815,127 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | The following table sets forth the Company’s financial instruments that are measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): As of September 30, 2023 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Money market deposit accounts Cash and cash equivalents $ 1,332 $ 1,332 $ — $ — Interest rate swap Prepaid expenses and other current assets $ 1,606 $ — $ 1,606 $ — Total financial assets $ 2,938 $ 1,332 $ 1,606 $ — As of December 31, 2022 Balance Sheet Location Total Level 1 Level 2 Level 3 Financial Assets: Money market funds (1) Cash and cash equivalents $ 604,399 $ 604,399 $ — $ — Interest rate swaps Prepaid expenses and other current assets $ 7,319 $ — $ 7,319 $ — Total financial assets $ 611,718 $ 604,399 $ 7,319 $ — (1) Includes balances in money market deposit accounts of $524.2 million as of December 31, 2022. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration to the fair value of the assets acquired (in thousands): 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 allocation of the purchase consideration 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 264,149 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 (5,235) Total purchase consideration $ 378,167 |
Schedule of Supplemental Pro Forma Information | The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, the MoPub business and Wurl, as if they had been acquired as of January 1, 2021 (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Revenue $ 713,099 $ 2,123,783 Net income (loss) $ 23,662 $ (104,775) 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 September 30, 2022 Nine Months Ended September 30, 2022 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 $ — $ (3,512) A decrease in expenses related to the TSA $ — $ 7,000 An (increase) due to replacement stock awards $ — $ (1,221) A decrease in expenses related to transaction costs $ — $ 16,899 A decrease in expenses related to transaction bonuses $ — $ 1,101 An (increase) in income tax provision $ — $ (4,625) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | The following table presents the changes in the carrying amount of goodwill by reporting unit (in thousands): Software Platform Apps Total December 31, 2022 $ 1,478,014 $ 345,741 $ 1,823,755 Foreign currency translation (10,188) — (10,188) September 30, 2023 $ 1,467,826 $ 345,741 $ 1,813,567 |
Schedule of Intangible Assets Acquired, Net | Intangible assets, net consisted of the following (in thousands): Weighted- As of September 30, 2023 As of December 31, 2022 Gross Accumulated Net Book Gross Accumulated Net Book Long-lived intangible assets : Apps 3.9 $ 1,830,329 $ (1,083,524) $ 746,805 $ 1,790,820 $ (836,375) $ 954,445 Customer relationships 8.5 513,182 (97,174) 416,008 515,084 (58,881) 456,203 User base 2.5 68,817 (44,436) 24,381 68,817 (37,122) 31,695 License asset 2.3 59,207 (27,478) 31,729 59,207 (16,901) 42,306 Developed technology 3.9 205,205 (79,038) 126,167 206,060 (53,879) 152,181 Other 4.5 60,100 (18,599) 41,501 53,933 (13,103) 40,830 Total long-lived intangible assets 2,736,840 (1,350,249) 1,386,591 2,693,921 (1,016,261) 1,677,660 Short-lived intangible assets: Apps 0.3 47,640 (47,480) 160 45,791 (44,838) 953 Total intangible assets $ 2,784,480 $ (1,397,729) $ 1,386,751 $ 2,739,712 $ (1,061,099) $ 1,678,613 |
Schedule of Finite-Lived Intangible Assets, Amortization Expenses | The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 93,398 $ 111,259 $ 288,180 $ 342,115 Sales and marketing 16,829 16,619 50,397 49,543 Total $ 110,227 $ 127,878 $ 338,577 $ 391,658 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Arrangement, Performance Shares, Outstanding Activity | The following table presents the number of PSUs that are eligible to vest based on the achievement of the respective stock price targets for each of Mr. Foroughi, Mr. Shikin and the Additional Participants (in aggregate): PSUs Eligible to Vest Company Stock Price Target Adam Foroughi Vasily Shikin Additional Participants $ 36.00 1,380,400 1,380,400 690,200 $ 46.75 1,380,400 1,380,400 690,200 $ 57.50 1,380,400 1,380,400 690,200 $ 68.25 1,380,400 1,380,400 690,200 $ 79.00 1,380,400 1,380,400 690,200 6,902,000 6,902,000 3,451,000 |
Schedule of Stock-based Payment Arrangement Expenses | Stock-based compensation expense is attributed to the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 1,309 $ 1,230 $ 3,942 $ 4,988 Sales and marketing 26,025 10,035 62,121 30,386 Research and development 70,462 21,569 176,337 68,088 General and administrative 13,043 9,313 32,658 40,481 Total $ 110,839 $ 42,147 $ 275,058 $ 143,943 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic EPS Numerator: Net income (loss) attributable to AppLovin $ 108,639 $ 23,771 $ 184,478 $ (113,234) Less: Income attributable to options exercises by promissory notes (442) (102) (720) — Income attributable to common stock subject to share repurchase agreements (360) — (228) — Income attributable to unvested early exercised options (2) (18) (15) — Income attributable to unvested RSAs — (2) — — Net income (loss) attributable to AppLovin common stockholders—Basic $ 107,835 $ 23,649 $ 183,515 $ (113,234) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 341,435,759 369,389,170 357,009,609 371,736,763 Net income (loss) per share attributable to common stock—Basic $ 0.32 $ 0.06 $ 0.51 $ (0.30) Diluted EPS Numerator: Net income (loss) attributable to AppLovin 108,639 23,771 184,478 (113,234) Less: Income attributable to options exercises by promissory notes (423) (99) (698) — Income attributable to common stock subject to share repurchase agreements (345) — (220) — Income attributable to unvested early exercised options (2) (17) (15) — Income attributable to unvested RSAs — (2) — — Net income (loss) attributable to AppLovin common stockholders—Diluted $ 107,869 $ 23,653 $ 183,545 $ (113,234) Denominator: Weighted-average shares used in computing net income (loss) per share—Basic 341,435,759 369,389,170 357,009,609 371,736,763 Weighted-average dilutive stock awards 15,470,463 9,073,037 11,249,904 — Weighted-average shares used in computing net income (loss) per share—Diluted 356,906,222 378,462,207 368,259,513 371,736,763 Net income (loss) per share attributable to AppLovin common stockholders—Diluted $ 0.30 $ 0.06 $ 0.50 $ (0.30) |
Schedule of Antidilutive Potential Common Shares | The following table presents the forms of antidilutive potential common shares: As of September 30, 2023 2022 Stock options exercised for promissory notes 1,399,999 1,399,999 Early exercised stock options 5,736 191,748 Stock options 613,968 12,168,796 Unvested RSUs 4,747,127 9,318,132 ESPP — 413,829 Total antidilutive potential common shares 6,766,830 23,492,504 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table provides information about the Company's reportable segments and a reconciliation of the total segment adjusted EBITDA to income (loss) before income taxes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Software Platform $ 504,452 $ 306,592 $ 1,265,273 $ 742,972 Apps 359,804 406,507 1,064,553 1,371,779 Total Revenue $ 864,256 $ 713,099 $ 2,329,826 $ 2,114,751 Segment Adjusted EBITDA: Software Platform $ 364,117 $ 190,256 $ 855,697 $ 622,555 Apps 55,174 67,381 170,806 181,055 Total Segment Adjusted EBITDA $ 419,291 $ 257,637 $ 1,026,503 $ 803,610 Interest expense and loss on settlement of debt $ (78,583) $ (48,627) $ (204,081) $ (117,141) Interest income and other, net 771 3,604 26,359 8,473 Amortization, depreciation and write-offs (121,797) (163,830) (369,897) (445,507) Non-operating foreign exchange gain 613 406 1,159 1,683 Stock-based compensation (110,839) (42,147) (275,058) (143,943) Acquisition-related expense (231) (4,317) (995) (21,052) Publisher bonuses — — — (209,635) MoPub acquisition transition services — — — (6,999) Restructuring costs — (1,117) (2,316) (8,494) Income (loss) before income taxes $ 109,225 $ 1,609 $ 201,674 $ (139,005) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | $ 48,400 | $ 48,400 | $ 62,500 | $ 78,100 | |
Segment Reconciling Items | |||||
Disaggregation of Revenue [Line Items] | |||||
Consideration incurred for existing and potential customer incentive bonuses | $ 0 | $ 0 | $ 0 | $ 209,635 | |
MoPub | Segment Reconciling Items | |||||
Disaggregation of Revenue [Line Items] | |||||
Consideration incurred for existing and potential customer incentive bonuses | $ 209,600 | ||||
Durable Virtual Goods | Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Estimated average user life | 5 months | ||||
Durable Virtual Goods | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Estimated average user life | 10 months |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 864,256 | $ 713,099 | $ 2,329,826 | $ 2,114,751 |
Software Platform Revenue | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 504,452 | 306,592 | 1,265,273 | 742,972 |
Total Apps Revenue | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 359,804 | 406,507 | 1,064,553 | 1,371,779 |
Total Apps Revenue | Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 359,804 | 406,507 | 1,064,553 | 1,371,779 |
In-App Purchase Revenue | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 247,309 | 272,437 | 732,262 | 915,177 |
In-App Advertising Revenue | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 112,495 | $ 134,070 | $ 332,291 | $ 456,602 |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 864,256 | $ 713,099 | $ 2,329,826 | $ 2,114,751 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 500,586 | 437,679 | 1,393,625 | 1,299,624 |
Rest of the World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 363,670 | $ 275,420 | $ 936,201 | $ 815,127 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | $ 2,938 | $ 611,718 |
Money market deposit account | 524,200 | |
Money market funds | Cash and cash equivalents | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,332 | 604,399 |
Interest rate swap | Prepaid expenses and other current assets | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,606 | 7,319 |
Level 1 | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,332 | 604,399 |
Level 1 | Money market funds | Cash and cash equivalents | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,332 | 604,399 |
Level 1 | Interest rate swap | Prepaid expenses and other current assets | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 0 | 0 |
Level 2 | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,606 | 7,319 |
Level 2 | Money market funds | Cash and cash equivalents | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 0 | 0 |
Level 2 | Interest rate swap | Prepaid expenses and other current assets | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 1,606 | 7,319 |
Level 3 | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Money market funds | Cash and cash equivalents | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Interest rate swap | Prepaid expenses and other current assets | ||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||
Total financial assets | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value by Fair Value Hierarchy Level [Line Items] | ||||||||
Investment | $ 54.2 | $ 54.2 | ||||||
Unfunded commitments | 41.1 | 41.1 | ||||||
Capital contributions | 0.1 | 16.9 | ||||||
Unrealized gain (loss) on investments | 2.3 | $ 0 | 7.3 | $ 0 | ||||
Proceeds from non marketable securities | $ 38 | |||||||
Impairment charges on investment | $ 5 | |||||||
Carrying amount of investments | 33 | $ 33 | ||||||
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 | 54.2 | $ 54.2 | $ 32.3 | |||||
Interest rate swap | ||||||||
Fair Value by Fair Value Hierarchy Level [Line Items] | ||||||||
Derivative, cash received | $ 12.2 | |||||||
Derivative, notional amount | 1,700 | 1,700 | ||||||
Derivative, gain on derivative, net | $ 0 | $ 15.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | May 31, 2022 | |
Other Commitments [Line Items] | ||
Amended contractual obligation | $ 550 | |
Commitment unpaid | $ 285.7 | |
Unfunded commitments | 41.1 | |
Standby Letters of Credit | ||
Other Commitments [Line Items] | ||
Letters of credit outstanding | 6.3 | |
Private Equity Funds | ||
Other Commitments [Line Items] | ||
Payments for purchase obligations | 167.2 | |
Unfunded commitments | $ 41.1 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Apr. 01, 2022 | Jan. 01, 2022 | Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||||||||
Impairment charge | $ 27.7 | $ 27.7 | |||||||
Transitional Services Agreement | |||||||||
Business Acquisition [Line Items] | |||||||||
Expenses recognized | $ 7 | ||||||||
MoPub | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration paid | $ 1,030 | ||||||||
Acquisition-related expense | 14.4 | ||||||||
Expected tax deductible amount for goodwill | 645.1 | ||||||||
Liabilities assumed in transaction | $ 0 | ||||||||
Wurl, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration paid | $ 219.3 | ||||||||
Acquisition-related expense | 1.9 | ||||||||
Consideration transferred | 378.2 | ||||||||
Business combination, equity interests issued and issuable | 137.4 | ||||||||
Consideration transferred, liabilities incurred | $ 22.7 | ||||||||
Transferred indemnity holdback period | 18 months | ||||||||
Revenue of acquiree since acquisition date | 22.7 | ||||||||
Pretax loss of acquiree since acquisition date | $ 8.7 | ||||||||
Wurl, Inc. | Portion at Other than Fair Value Measurement | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred, liabilities incurred | $ 21.5 | ||||||||
Wurl, Inc. | Class A Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Interests issued and issuable shares | 2,579,692 | 90,000,000 | |||||||
Business combination, consideration transferred, cash and equity interests issued and issuable, earnout | $ 600 | ||||||||
Certain Mobile Game Apps | |||||||||
Business Acquisition [Line Items] | |||||||||
Contingent consideration, costs | $ 9.2 | $ 52.2 | |||||||
Asset acquisition, consideration transferred, contingent consideration, earn-out payment | $ 23.2 | $ 98.7 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jan. 01, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2022 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,813,567 | $ 1,823,755 | ||
MoPub | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 632,472 | |||
Total purchase consideration | $ 1,030,332 | |||
MoPub | Advertiser Relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
Intangible assets | $ 212,700 | |||
MoPub | Publisher Relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 9 years | |||
Intangible assets | $ 123,300 | |||
MoPub | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 5 years | |||
Intangible assets | $ 61,800 | |||
MoPub | Tradename | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 3 months | |||
Intangible assets | $ 60 | |||
Wurl, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 400 | |||
Accounts receivable and other current assets | 15,194 | |||
Intangible assets | 0 | |||
Goodwill | 264,149 | |||
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 | (5,235) | |||
Total purchase consideration | 378,167 | |||
Wurl, Inc. | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 6 years | |||
Intangible assets | 60,500 | |||
Wurl, Inc. | Tradename | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years | |||
Intangible assets | 14,700 | |||
Wurl, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 15 years | |||
Intangible assets | $ 41,000 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Supplemental Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenue | $ 713,099 | $ 2,123,783 |
Net income (loss) | $ 23,662 | $ (104,775) |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Pro Forma Adjustments to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | $ 23,662 | $ (104,775) |
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 | (3,512) |
A decrease in expenses related to the TSA | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | 0 | 7,000 |
An (increase) due to replacement stock awards | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | 0 | (1,221) |
A decrease in expenses related to transaction costs | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | 0 | 16,899 |
A decrease in expenses related to transaction bonuses | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | 0 | 1,101 |
An (increase) in income tax provision | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net income (loss) | $ 0 | $ (4,625) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,823,755 |
Foreign currency translation | (10,188) |
Balance at end of period | 1,813,567 |
Operating Segments | Software Platform | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,478,014 |
Foreign currency translation | (10,188) |
Balance at end of period | 1,467,826 |
Operating Segments | Apps | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 345,741 |
Foreign currency translation | 0 |
Balance at end of period | $ 345,741 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets Acquired, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net Book Value | $ 1,386,591 | $ 1,677,660 |
Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2,736,840 | 2,693,921 |
Accumulated Amortization | (1,350,249) | (1,016,261) |
Net Book Value | 1,386,591 | 1,677,660 |
Total intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2,784,480 | 2,739,712 |
Accumulated Amortization | (1,397,729) | (1,061,099) |
Net Book Value | $ 1,386,751 | 1,678,613 |
Apps | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 3 years 10 months 24 days | |
Gross Carrying Value | $ 1,830,329 | 1,790,820 |
Accumulated Amortization | (1,083,524) | (836,375) |
Net Book Value | $ 746,805 | 954,445 |
Apps | Short-Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 3 months 18 days | |
Gross Carrying Value | $ 47,640 | 45,791 |
Accumulated Amortization | (47,480) | (44,838) |
Net Book Value | $ 160 | 953 |
Customer relationships | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 8 years 6 months | |
Gross Carrying Value | $ 513,182 | 515,084 |
Accumulated Amortization | (97,174) | (58,881) |
Net Book Value | $ 416,008 | 456,203 |
User base | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 2 years 6 months | |
Gross Carrying Value | $ 68,817 | 68,817 |
Accumulated Amortization | (44,436) | (37,122) |
Net Book Value | $ 24,381 | 31,695 |
License asset | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 2 years 3 months 18 days | |
Gross Carrying Value | $ 59,207 | 59,207 |
Accumulated Amortization | (27,478) | (16,901) |
Net Book Value | $ 31,729 | 42,306 |
Developed technology | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 3 years 10 months 24 days | |
Gross Carrying Value | $ 205,205 | 206,060 |
Accumulated Amortization | (79,038) | (53,879) |
Net Book Value | $ 126,167 | 152,181 |
Other | Long -Lived Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life (Years) | 4 years 6 months | |
Gross Carrying Value | $ 60,100 | 53,933 |
Accumulated Amortization | (18,599) | (13,103) |
Net Book Value | $ 41,501 | $ 40,830 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Finite-Lived Intangible Assets, Amortization Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 110,227 | $ 127,878 | $ 338,577 | $ 391,658 |
Cost of revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 93,398 | 111,259 | 288,180 | 342,115 |
Sales and marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 16,829 | $ 16,619 | $ 50,397 | $ 49,543 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2022 | |
Class of Stock [Line Items] | |||||||||||
Stock repurchased, value | $ 573,787,000 | $ 503,448,000 | $ 76,358,000 | $ 84,353,000 | $ 210,830,000 | $ 43,697,000 | |||||
Class A Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 447,600,000 | $ 296,000,000 | $ 750,000,000 | ||||||||
Repurchases of stock - repurchase program (in shares) | 46,665,285 | 9,042,407 | |||||||||
Stock repurchased, value | $ 1,153,600,000 | $ 338,800,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 01, 2023 shares | Jan. 31, 2023 shares | Sep. 30, 2023 $ / shares shares | Apr. 30, 2023 shares | Mar. 31, 2023 tranche consecutiveTradingDay shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) plan tranche $ / shares shares | Sep. 30, 2022 USD ($) | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Number of equity compensation plans | plan | 3 | ||||||||
Number of vesting eligible traches | tranche | 5 | ||||||||
Number of trading day | consecutiveTradingDay | 30 | ||||||||
Performance period | 5 years | 5 years | 5 years | ||||||
Number of vesting traches | tranche | 5 | ||||||||
Stock-based compensation | $ | $ 110,839 | $ 42,147 | $ 275,058 | $ 143,943 | |||||
P S U Grants | Common Stock Price Target One | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 36 | $ 36 | $ 36 | ||||||
Employee Stock Purchase Plan | Class A Common Stock | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Maximum number of shares per employee (in shares) | 3,500 | 590 | |||||||
Shares purchased for award (in shares) | 174,670 | ||||||||
Performance Shares | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Number of PSU's vested (in shares) | 3,451,000 | ||||||||
Accelerated stock-based compensation expense | $ | $ 25,700 | ||||||||
Performance Shares | Common Stock Price Target One | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 36 | $ 36 | $ 36 | ||||||
Performance Shares | Chief Executive Officer | Adam Foroughi | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Nonvested, weighted average grant date fair value (in dollar per share) | $ / shares | 7.60 | 7.60 | 7.60 | ||||||
Performance Shares | Chief Treasury Officers | Vasily Shikin | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Nonvested, weighted average grant date fair value (in dollar per share) | $ / shares | 6.03 | 6.03 | 6.03 | ||||||
Performance Shares | Additional Participants | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Nonvested, weighted average grant date fair value (in dollar per share) | $ / shares | $ 8.76 | $ 8.76 | $ 8.76 | ||||||
Performance Shares | P S U Grants | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Granted (in shares) | 6,902,000 | ||||||||
Number of shares available for grant (in shares) | 3,451,000 | 3,451,000 | 3,451,000 | ||||||
Restricted stock units granted (in shares) | 3,451,000 | ||||||||
Holding period | 1 year | ||||||||
Performance Shares | P S U Grants | Minimum | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Award requisite service period | 1 year 8 months 12 days | ||||||||
Performance Shares | P S U Grants | Maximum | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Award requisite service period | 3 years 1 month 6 days | ||||||||
Unvested RSUs | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Restricted stock units granted (in shares) | 4,631,285 | ||||||||
Restricted stock units granted (in dollars per share) | $ / shares | $ 14.14 | ||||||||
Unvested RSUs | Minimum | |||||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Award vesting period | 1 year |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Share-Based Payment Arrangement, Performance Shares, Outstanding Activity (Details) | Sep. 30, 2023 $ / shares shares |
P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 3,451,000 |
P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 6,902,000 |
P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 6,902,000 |
Common Stock Price Target One | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 36 |
Common Stock Price Target One | P S U Grants | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 36 |
Common Stock Price Target One | P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 690,200 |
Common Stock Price Target One | P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target One | P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Two | P S U Grants | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 46.75 |
Common Stock Price Target Two | P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 690,200 |
Common Stock Price Target Two | P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Two | P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Three | P S U Grants | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 57.50 |
Common Stock Price Target Three | P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 690,200 |
Common Stock Price Target Three | P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Three | P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Four | P S U Grants | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 68.25 |
Common Stock Price Target Four | P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 690,200 |
Common Stock Price Target Four | P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Four | P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Five | P S U Grants | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 79 |
Common Stock Price Target Five | P S U Grants | Performance Shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 690,200 |
Common Stock Price Target Five | P S U Grants | Performance Shares | Adam Foroughi | Chief Executive Officer | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Common Stock Price Target Five | P S U Grants | Performance Shares | Vasily Shikin | Chief Treasury Officers | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
PSUs Eligible to Vest (in shares) | 1,380,400 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock-based Payment Arrangement Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 110,839 | $ 42,147 | $ 275,058 | $ 143,943 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,309 | 1,230 | 3,942 | 4,988 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 26,025 | 10,035 | 62,121 | 30,386 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 70,462 | 21,569 | 176,337 | 68,088 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 13,043 | $ 9,313 | $ 32,658 | $ 40,481 |
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 | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income (loss) attributable to AppLovin | $ 108,639 | $ 80,357 | $ (4,518) | $ 23,771 | $ (21,748) | $ (115,257) | $ 184,478 | $ (113,234) |
Income attributable to options exercises by promissory notes | (442) | (102) | (720) | 0 | ||||
Income attributable to common stock subject to share repurchase agreements | (360) | 0 | (228) | 0 | ||||
Income attributable to unvested early exercised options | (2) | (18) | (15) | 0 | ||||
Income attributable to unvested RSAs | 0 | (2) | 0 | 0 | ||||
Net income (loss) attributable to AppLovin common stockholders—Basic | $ 107,835 | $ 23,649 | $ 183,515 | $ (113,234) | ||||
Denominator: | ||||||||
Weighted-average shares used in computing net income (loss) per share—Basic (in shares) | 341,435,759 | 369,389,170 | 357,009,609 | 371,736,763 | ||||
Net income (loss) per share attributable to common stock—Basic (in dollars per share) | $ 0.32 | $ 0.06 | $ 0.51 | $ (0.30) | ||||
Numerator: | ||||||||
Net income (loss) attributable to AppLovin | $ 108,639 | $ 80,357 | $ (4,518) | $ 23,771 | $ (21,748) | $ (115,257) | $ 184,478 | $ (113,234) |
Income attributable to options exercises by promissory notes | (423) | (99) | (698) | 0 | ||||
Income attributable to common stock subject to share repurchase agreements | (345) | 0 | (220) | 0 | ||||
Income attributable to unvested early exercised options | (2) | (17) | (15) | 0 | ||||
Income attributable to unvested RSAs | 0 | (2) | 0 | 0 | ||||
Net income (loss) attributable to AppLovin common stockholders—Diluted | $ 107,869 | $ 23,653 | $ 183,545 | $ (113,234) | ||||
Denominator: | ||||||||
Weighted-average shares used in computing net income (loss) per share—Basic (in shares) | 341,435,759 | 369,389,170 | 357,009,609 | 371,736,763 | ||||
Weighted-average dilutive stock awards (in shares) | 15,470,463 | 9,073,037 | 11,249,904 | 0 | ||||
Weighted-average shares used in computing net income (loss) per share—Diluted (in shares) | 356,906,222 | 378,462,207 | 368,259,513 | 371,736,763 | ||||
Net income (loss) per share attributable to AppLovin common stockholders—Diluted (in dollars per share) | $ 0.30 | $ 0.06 | $ 0.50 | $ (0.30) |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Antidilutive Potential Common Shares (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 6,766,830 | 23,492,504 |
Stock options exercised for promissory notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 1,399,999 | 1,399,999 |
Early exercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 5,736 | 191,748 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 613,968 | 12,168,796 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 4,747,127 | 9,318,132 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive potential common shares (in shares) | 0 | 413,829 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 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 | 9 Months Ended | ||||
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Revenue | $ 864,256 | $ 713,099 | $ 2,329,826 | $ 2,114,751 | ||
Adjusted EBITDA | 419,291 | 257,637 | 1,026,503 | 803,610 | ||
Interest expense and loss on settlement of debt | (78,583) | (48,627) | (204,081) | (117,141) | ||
Amortization, depreciation and write-offs | (369,897) | (445,507) | ||||
Stock-based compensation | (110,839) | (42,147) | (275,058) | (143,943) | ||
Income (loss) before income taxes | 109,225 | 1,609 | 201,674 | (139,005) | ||
MoPub | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Acquisition-related expense | $ (14,400) | |||||
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 | (78,583) | (48,627) | (204,081) | (117,141) | ||
Interest income and other, net | 771 | 3,604 | 26,359 | 8,473 | ||
Amortization, depreciation and write-offs | (121,797) | (163,830) | (369,897) | (445,507) | ||
Non-operating foreign exchange gain | 613 | 406 | 1,159 | 1,683 | ||
Stock-based compensation | (110,839) | (42,147) | (275,058) | (143,943) | ||
Acquisition-related expense | (231) | (4,317) | (995) | (21,052) | ||
Publisher bonuses | 0 | 0 | 0 | (209,635) | ||
Restructuring costs | 0 | (1,117) | (2,316) | (8,494) | ||
Segment Reconciling Items | MoPub | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Publisher bonuses | $ (209,600) | |||||
MoPub acquisition transition services | 0 | 0 | 0 | (6,999) | ||
Software Platform Revenue | Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Revenue | 504,452 | 306,592 | 1,265,273 | 742,972 | ||
Adjusted EBITDA | 364,117 | 190,256 | 855,697 | 622,555 | ||
Apps | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Revenue | 359,804 | 406,507 | 1,064,553 | 1,371,779 | ||
Apps | Operating Segments | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||
Revenue | 359,804 | 406,507 | 1,064,553 | 1,371,779 | ||
Adjusted EBITDA | $ 55,174 | $ 67,381 | $ 170,806 | $ 181,055 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2023 | Aug. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Line of Credit Facility [Line Items] | ||||||
Expiration period | 91 days | |||||
Increase in maximum credit facility borrowing capacity | $ 10,000,000 | |||||
Line of credit facility maximum borrowing capacity | 610,000,000 | |||||
Debt issuance costs | $ 4,000,000 | |||||
Loss on settlement of debt | $ 4,337,000 | $ 0 | ||||
Proceeds from revolving credit facility | $ 185,000,000 | 185,000,000 | $ 0 | |||
Amount available to be drawn from revolving credit facility | $ 418,700,000 | 418,700,000 | ||||
Initial Term Loan | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 1,700,000,000 | |||||
Loss on settlement of debt | 4,300,000 | 4,300,000 | ||||
Amendment No. 9 Replacement Term Loans | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate amount | 1,500,000,000 | |||||
Quarterly repayments | 3,800,000 | |||||
Debt issuance costs, expensed | $ 11,100,000 | $ 11,100,000 | ||||
Unamortized debt discount and issuance costs | $ 20,100,000 | |||||
Secured Overnight Financing Rate (SOFR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||
Secured Overnight Financing Rate (SOFR) | Amendment No. 9 Replacement Term Loans | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.10% | |||||
Secured Overnight Financing Rate (SOFR) Floor | Amendment No. 9 Replacement Term Loans | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Base Rate | Amendment No. 9 Replacement Term Loans | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 31, 2023 | May 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||||||||
Stock repurchased, value | $ 573,787 | $ 503,448 | $ 76,358 | $ 84,353 | $ 210,830 | $ 43,697 | ||||
Class A Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Repurchases of stock - repurchase program (in shares) | 46,665,285 | 9,042,407 | ||||||||
Stock repurchased, value | $ 1,153,600 | $ 338,800 | ||||||||
Class A Common Stock | Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Repurchases of stock - repurchase program (in shares) | 15,000,000 | 15,952,381 | ||||||||
Repurchased shares (in dollar per share) | $ 36.85 | $ 21 | ||||||||
Stock repurchased, value | $ 552,800 | $ 335,000 |