APPLOVIN CORP, 10-Q filed on 5/8/2024
Quarterly Report
v3.24.1.u1
Cover Page - shares
 3 Months Ended
Mar. 31, 2024
May 03, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
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 $0.00003 per share  
Trading Symbol APP  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --12-31  
Entity Central Index Key 0001751008  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   273,970,847
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   55,042,821
v3.24.1.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 436,336 $ 502,152
Accounts receivable, net 1,035,372 953,810
Prepaid expenses and other current assets 136,180 160,201
Total current assets 1,607,888 1,616,163
Property and equipment, net 172,994 173,331
Goodwill 1,827,197 1,842,850
Intangible assets, net 1,198,122 1,292,635
Other assets 456,316 434,208
Total assets 5,262,517 5,359,187
Current liabilities:    
Accounts payable 390,079 371,702
Accrued and other current liabilities 256,402 278,861
Short-term debt 35,563 215,000
Deferred revenue 80,480 78,559
Total current liabilities 762,524 944,122
Long-term debt 3,489,891 2,905,906
Other non-current liabilities 249,898 252,830
Total liabilities 4,502,313 4,102,858
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 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, 328,958,886 (Class A 273,916,065 and Class B 55,042,821) and 339,886,712 (Class A 268,774,090 and Class B 71,112,622) shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 11 11
Additional paid-in capital 1,420,895 2,134,581
Accumulated other comprehensive loss (83,896) (65,274)
Accumulated deficit (576,806) (812,989)
Total stockholders’ equity 760,204 1,256,329
Total liabilities and stockholders’ equity $ 5,262,517 $ 5,359,187
v3.24.1.u1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2024
Dec. 31, 2023
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) 328,958,886 339,886,712
Common stock, shares outstanding (in shares) 328,958,886 339,886,712
Class A Common Stock    
Common stock, shares authorized (in shares) 1,500,000,000 1,500,000,000
Common stock, shares issued (in shares) 273,916,065 268,774,090
Common stock, shares outstanding (in shares) 273,916,065 268,774,090
Class B Common Stock    
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 55,042,821 71,112,622
Common stock, shares outstanding (in shares) 55,042,821 71,112,622
v3.24.1.u1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Revenue $ 1,058,115 $ 715,405
Costs and expenses:    
Cost of revenue 294,148 261,960
Sales and marketing 226,687 202,976
Research and development 155,323 144,851
General and administrative 42,398 44,571
Total costs and expenses 718,556 654,358
Income from operations 339,559 61,047
Other income (expense):    
Interest expense (74,182) (74,511)
Other income, net 2,568 10,111
Total other expense, net (71,614) (64,400)
Income (loss) before income taxes 267,945 (3,353)
Provision for income taxes 31,762 1,165
Net income (loss) 236,183 (4,518)
Less: Net income attributable to participating securities 1,451 0
Net income (loss) attributable to common stock—Basic 234,732 (4,518)
Net income (loss) attributable to common stock—Diluted $ 234,784 $ (4,518)
Net income (loss) per share attributable to Class A and Class B common stockholders:    
Basic (in dollars per share) $ 0.70 $ (0.01)
Diluted (in dollars per share) $ 0.67 $ (0.01)
Weighted average common shares used to compute net income (loss) per share attributable to Class A and Class B common stockholders:    
Basic (in shares) 335,794,739 373,160,029
Diluted (in shares) 348,596,295 373,160,029
v3.24.1.u1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 236,183 $ (4,518)
Other comprehensive income (loss):    
Foreign currency translation adjustment, net of tax (18,622) 10,006
Other comprehensive income (loss), net of tax (18,622) 10,006
Comprehensive income $ 217,561 $ 5,488
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Condensed Consolidated Statements of Stockholders’ Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
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 loss, net of tax 10,006     10,006  
Net income (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 (in shares) at Dec. 31, 2023   339,886,712      
Balance at beginning of period at Dec. 31, 2023 1,256,329 $ 11 2,134,581 (65,274) (812,989)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock issued in connection with equity awards (in shares)   3,936,518      
Stock issued in connection with equity awards 23,429   23,429    
Shares withheld related to net share settlement (in shares)   (1,397,947)      
Shares withheld related to net share settlement (80,144)   (80,144)    
Repurchase of Class A common stock (in shares)   (13,466,397)      
Repurchase of Class A common stock (752,224)   (752,224)    
Stock-based compensation 95,253   95,253    
Total other comprehensive loss, net of tax (18,622)     (18,622)  
Net income 236,183       236,183
Balance at end of period (in shares) at Mar. 31, 2024   328,958,886      
Balance at end of period at Mar. 31, 2024 $ 760,204 $ 11 $ 1,420,895 $ (83,896) $ (576,806)
v3.24.1.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Operating Activities    
Net income (loss) $ 236,183 $ (4,518)
Adjustments to reconcile net income (loss) to operating activities:    
Amortization, depreciation and write-offs 112,667 128,208
Stock-based compensation 95,253 82,966
Other 8,540 9,139
Changes in operating assets and liabilities:    
Accounts receivable (84,836) 65,614
Prepaid expenses and other assets 26,813 (17,549)
Accounts payable 18,056 9,722
Accrued and other liabilities (19,897) 15,080
Net cash provided by operating activities 392,779 288,662
Investing Activities    
Purchase of non-marketable equity securities (28,333) (16,834)
Other investing activities (3,302) 3,859
Net cash used in investing activities (31,635) (12,975)
Financing Activities    
Repurchases of stock (752,224) (64,897)
Principal repayments of debt (668,972) (8,327)
Payment of withholding taxes related to net share settlement (80,144) (19,167)
Payments of licensed asset obligation 0 (15,254)
Proceeds from issuance of debt 1,072,330 0
Proceeds from exercise of stock options 9,782 2,906
Other financing activities (5,384) (6,676)
Net cash used in financing activities (424,612) (111,415)
Effect of foreign exchange rate on cash and cash equivalents (2,348) 1,137
Net increase (decrease) in cash and cash equivalents (65,816) 165,409
Cash and cash equivalents at beginning of the period 502,152 1,080,484
Cash and cash equivalents at end of the period 436,336 1,245,893
Supplemental non-cash investing and financing activities disclosures:    
Right-of-use assets acquired under finance leases 9,942 45,318
Acquisitions not yet paid 13,088 12,969
Repurchase of common stock included in accrued liabilities 0 11,461
Supplemental disclosure of cash flow information:    
Cash paid for interest, net 71,189 67,006
Cash paid for income taxes, net of refunds $ 3,578 $ 1,816
v3.24.1.u1
Description of Business and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
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 advertising ecosystem providing an end-to-end software platform that allows businesses to reach, monetize and grow their global audiences. The Company also has a globally diversified portfolio of apps—free-to-play mobile games that it operates through its 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 26, 2024. The condensed consolidated balance sheet data as of December 31, 2023 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 months ended March 31, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2024 or any other period.
Basis of Consolidation
The Company's condensed consolidated financial statements include accounts of the Company and its wholly-owned and majority-owned subsidiaries, and the ownership interest of minority investors is recorded as noncontrolling interest. In accordance with the provisions of Accounting Standards Codification ("ASC") 810, Consolidation, the Company is also required to consolidate any variable interest entities ("VIE") when it is the primary beneficiary. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company 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 that are believed to be reasonable under the circumstances. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to fair values of assets and liabilities acquired through acquisitions, useful lives of intangible assets and property and equipment, expected period of consumption of virtual goods, income and indirect taxes, contingent liabilities, evaluation of recoverability of intangible assets and long-lived assets, goodwill impairment, stock-based compensation, 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 Not Yet Adopted)
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. The amendments will be effective for fiscal
years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments must be applied retrospectively, and early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments will be effective for annual periods beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.
v3.24.1.u1
Revenue
 3 Months Ended
Mar. 31, 2024
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.
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 from Adjust's measurement and analytics marketing platform that is recognized ratably over the subscription period, generally up to twelve months. Revenue from other services within the Software Platform was not material.
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 and ten months.
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 March 31,
20242023
Software Platform Revenue$678,370 $354,758 
In-App Purchase Revenue259,196 251,328 
In-App Advertising Revenue120,549 109,319 
Total Apps Revenue379,745 360,647 
Total Revenue$1,058,115 $715,405 
Revenue disaggregated by geography, based on user location, consists of the following (in thousands):
Three Months Ended March 31,
20242023
United States$634,604 $439,319 
Rest of the World423,511 276,086 
Total Revenue$1,058,115 $715,405 
Contract Balances
Contract liabilities consist of deferred revenue, which are recorded for payments received in advance of the satisfaction of performance obligations. During the three months ended March 31, 2024 and 2023, the Company recognized $53.0 million and $47.6 million of revenue that was included in deferred revenue as of December 31, 2023 and 2022, 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.
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Financial Instruments and Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Money market deposit accounts
Cash and cash equivalents
$1,370 $1,370 $— $— 
Total financial assets$1,370 $1,370 $— $— 
As of December 31, 2023
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Money market deposit accounts
Cash and cash equivalents$1,352 $1,352 $— $— 
Total financial assets$1,352 $1,352 $— $— 
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 (see Note 11 - Credit Agreement). 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. During the three months ended March 31, 2023, the Company recorded a net loss of $5.6 million. Cash paid for or received from the settlement of the interest rate swaps 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. All interest rate swaps were settled during 2023.
Non-Marketable Equity Securities Measured at Net Asset Value
The Company held equity interests in certain private equity funds of $75.1 million and $56.7 million as of March 31, 2024 and December 31, 2023, 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 $75.1 million and the unfunded commitments of $22.3 million as of March 31, 2024.
During the three months ended March 31, 2024, the Company made total capital contributions of $18.3 million related to these investments. The unrealized gains related to these investments were not material for the three months ended March 31, 2024 and 2023.
Non-Marketable Equity Securities Measured at Fair Value on a Non-Recurring Basis
The Company's non-marketable equity securities are investments in privately held companies without readily determinable fair values. The Company elected the measurement alternative to account for these investments. Under the measurement alternative, the carrying value of the non-marketable equity securities are adjusted based on price changes from observable transactions of identical or similar securities of the same issuer or for impairment. Any changes in carrying value are recorded within other income, net in the Company's condensed consolidated statement of operations.
In February 2024, the Company entered into an agreement to invest $50.0 million in the Series C preferred stock financing of Humans, Inc., the developer of the Flip Shop social shopping app ("Flip Shop"). The first financing tranche closed in February 2024, in which the Company invested $10.0 million. The closing of the second tranche was contingent upon certain conditions, which were satisfied as of March 31, 2024. The second tranche closed on April 1, 2024, with the Company investing the remaining $40.0 million. In February 2024, the Company also entered into an arm's length commercial agreement with Flip Shop related to its use of the Company's AXON technology under a revenue share model.
As of March 31, 2024 and December 31, 2023, the carrying amounts of the Company's non-marketable equity securities were $20.1 million and $10.1 million, respectively, and are included in other assets in the Company’s condensed consolidated balance sheets.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
As of March 31, 2024, 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 a minimum of $550.0 million of cloud services through May 2025. During the three months ended March 31, 2024, the Company made payments of $88.1 million under this arrangement, with a remaining unpaid commitment of $135.3 million as of March 31, 2024. In addition, the Company had total unfunded commitments of $22.3 million related to investments in certain private equity funds and a commitment to participate in the second tranche of the Series C preferred stock financing of Humans, Inc. for $40.0 million. 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 March 31, 2024 and December 31, 2023, the Company had outstanding letters of credit in the aggregate amount of $6.3 million and $6.3 million, respectively, 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 March 31, 2024, the Company did not have any material indemnification claims that were probable or reasonably possible.
Non-income Taxes
The Company may be subject to audit by various tax authorities with regard to non-income tax matters. The subject matter of non-income tax audits primarily arises from different interpretations on tax treatment and tax rates applied. The Company accrues liabilities for non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss.
v3.24.1.u1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2024
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 PlatformAppsTotal
December 31, 2023$1,497,109 $345,741 $1,842,850 
Foreign currency translation(15,653)— (15,653)
March 31, 2024$1,481,456 $345,741 $1,827,197 
Intangible assets, net consisted of the following (in thousands):
 Weighted-
Average
Remaining
Useful Life
(Years)		As of March 31, 2024As of December 31, 2023
 Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value
 
 
Apps3.6$1,828,387 $(1,225,576)$602,811 $1,818,907 $(1,152,611)$666,296 
Customer relationships7.9516,021 (123,578)392,443 519,175 (111,374)407,801 
User base2.068,817 (49,312)19,505 68,817 (46,874)21,943 
License asset1.859,207 (34,529)24,678 59,207 (31,003)28,204 
Developed technology3.3206,481 (96,599)109,882 207,900 (88,716)119,184 
Other3.573,102 (24,299)48,803 71,196 (21,989)49,207 
Total intangible assets
$2,752,015 $(1,553,893)$1,198,122 $2,745,202 $(1,452,567)$1,292,635 
The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands):
Three Months Ended March 31,
20242023
Cost of revenue$88,142 $98,644 
Sales and marketing16,819 16,788 
Total$104,961 $115,432 
v3.24.1.u1
Equity
 3 Months Ended
Mar. 31, 2024
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. In February 2024, the Company's Board authorized an increase of $1.25 billion to the repurchase program.
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 three months ended March 31, 2024 and 2023, the Company repurchased 13,466,397 and 5,396,617 shares of Class A common stock for an aggregate amount, including commissions and fees, of $752.2 million and $76.4 million, respectively. As of March 31, 2024, $500.0 million remains available of the authorized amount under the repurchase program.
During the three months ended March 31,2024, 16,069,801 shares of Class B common stock were converted to Class A common stock.
v3.24.1.u1
Stock-based Compensation
 3 Months Ended
Mar. 31, 2024
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 February 2024, the Company settled the liability of $15.7 million related to certain Wurl performance-based incentive plan through the issuance of 346,836 shares of the Company's Class A common stock and $2.1 million in cash.
In March 2024, 3,416,490 performance-based restricted stock units ("PSUs") vested under the terms of the respective PSU agreements upon the achievement of the stock price target of $46.75 per share, resulting in a stock-based compensation expense of $17.9 million recorded for such PSUs during the three months ended March 31, 2024.
During the three months ended March 31, 2024, the Company granted 103,671 restricted stock units ("RSUs") to certain employees under the 2021 Plan at the weighted average grant date fair value of $49.57 per RSU. These awards vest based on a service condition that is satisfied generally over one year.
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 March 31,
20242023
Cost of revenue$1,468 $1,316 
Sales and marketing21,963 16,683 
Research and development59,446 49,929 
General and administrative12,376 15,038 
Total$95,253 $82,966 
v3.24.1.u1
Earnings Per Share
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Basic EPS
Numerator:
Net income (loss)
$236,183 $(4,518)
Less:
Income attributable to options exercises by promissory notes(726)— 
Income attributable to common stock subject to share repurchase agreements
(724)— 
Income attributable to unvested early exercised options(1)— 
Net income (loss) attributable to Class A and Class B common stockholders—Basic
$234,732 $(4,518)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic335,794,739 373,160,029 
Net income (loss) per share attributable to common stock—Basic$0.70 $(0.01)
Diluted EPS
Numerator:
Net income (loss) attributable to AppLovin236,183 (4,518)
Less:
Income attributable to options exercises by promissory notes(700)— 
Income attributable to common stock subject to share repurchase agreements
(698)— 
Income attributable to unvested early exercised options(1)— 
Net income (loss) attributable to Class A and Class B common stockholders—Diluted
$234,784 $(4,518)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic335,794,739 373,160,029 
Weighted-average dilutive stock awards
12,801,556 — 
Weighted-average shares used in computing net income (loss) per share—Diluted348,596,295 373,160,029 
Net income (loss) per share attributable to common stock—Diluted
$0.67 $(0.01)
The following table presents the forms of antidilutive potential common shares:
As of March 31,
20242023
Stock options exercised for promissory notes85,000 1,399,999 
Early exercised stock options559 38,250 
Stock options12,265 10,582,241 
Unvested RSUs
2,006,934 16,195,182 
ESPP— 842,419 
Total antidilutive potential common shares2,104,758 29,058,091 
The table above excludes any unvested PSUs since the related market conditions had not been met as of March 31, 2024.
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 31, 2024
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 2024 annual effective tax rate differs from the U.S. statutory rate primarily due to jurisdictional mix of earnings, stock-based compensation expense, foreign tax credits, foreign derived intangible income deduction, and global intangible low-taxed income.
During the three months ended March 31, 2024, 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.
v3.24.1.u1
Segments
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Revenue:
Software Platform$678,370 $354,758 
Apps379,745 360,647 
Total Revenue$1,058,115 $715,405 
Segment Adjusted EBITDA:
Software Platform$492,020 $218,694 
Apps56,751 55,004 
Total Segment Adjusted EBITDA$548,771 $273,698 
Interest expense$(74,182)$(74,511)
Other income, net3,397 9,771 
Amortization, depreciation and write-offs(112,667)(128,208)
Loss on disposal of long lived assets(1,646)— 
Non-operating foreign exchange gain (loss)
(106)672 
Stock-based compensation(95,253)(82,966)
Acquisition-related expense(369)(517)
Restructuring costs— (1,292)
Income (loss) before income taxes$267,945 $(3,353)
v3.24.1.u1
Credit Agreement
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Credit Agreement Credit Agreement
The Company is a party to a certain credit agreement (the “Credit Agreement”), which provides for a senior secured term loan maturing in October 2028 (“2028 Term Loan"), a senior secured term loan maturing in August 2030 (“2030 Term Loan”), and a revolving credit facility.
In March 2024, the Company entered into Amendment No. 10 to the Credit Agreement which reduces the interest rate margin from 3.1% to 2.5% with respect to SOFR loans (or from 2.0% to 1.5% with respect to base rate loans). In connection with the amendment, the Company increased the aggregate principal amount of the 2030 Term Loan to $2.09 billion and reduced the aggregate principal amount of the 2028 Term Loan to $1.46 billion. The other material terms of the Credit Agreement remain unchanged.
The transaction was assessed at the syndicated lender level and was accounted for primarily as a debt modification. The Company expensed $6.2 million of third-party costs incurred with the amendment in other income, net in the Company’s condensed consolidated statement of operations for the three months ended March 31, 2024. Fees paid to the lenders in connection with the amendment were recorded as an additional debt discount and will be amortized to interest expense over the remaining term, together with unamortized original debt issuance costs and discount, using the effective interest method.
In March 2024, the Company drew down an additional $418.7 million from the revolving credit facility to fund certain repurchases under the Company's share repurchase program. As of March 31, 2024, the entire outstanding amount under the revolving credit facility of $603.7 million was repaid in full. KKR Corporate Lending (CA) LLC, an affiliate of KKR Denali Holdings L.P. (“KKR Denali”) which owns more than 10% of the Company's voting interests, has provided revolving credit commitments in the amount of $15.0 million under the revolving credit facility.
v3.24.1.u1
Related Party Transactions
 3 Months Ended
Mar. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
On February 29, 2024, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with KKR Denali, and BofA Securities, Inc., acting for themselves and as representative of other underwriters (collectively, the “Underwriters”), in connection with a secondary public offering (the “Offering”) of 19,866,397 shares of the Company's Class A common stock by KKR Denali. Pursuant to the Underwriting Agreement, on March 6, 2024, the Company repurchased from the Underwriters 10,466,397 shares of Class A common stock sold to the Underwriters by KKR Denali in the Offering at a price per share of $54.46, the same per share price paid by the Underwriters to KKR Denali in the Offering. In connection with the Offering, KKR Denali converted 16,000,000 shares of Class B common stock to Class A common stock. See Note 6 – Equity for additional information on the share repurchase program.
On March 8, 2019, the Company entered into a promissory note with Rafael Vivas, the brother of Eduardo Vivas, a member of the Company's Board of Directors, for the purpose of advancing him funds to allow him to early exercise his stock options (“Vivas Note”). The Vivas Note was issued in the amount of $2.3 million at an interest rate of 2.59%, and later amended on August 7, 2020 to lower the interest rate on the outstanding balance of such note to the then applicable IRS annual mid-term rate of 0.41%. On March 8, 2024, the principal amount due under the Vivas Note plus accrued interest, or $2.3 million, was repaid in full to the Company and the Vivas Note was extinguished.
In February 2024, the Company entered into certain investment and arm's length commercial agreements with Humans, Inc. See Note 3 - Financial Instruments and Fair Value Measurements for additional information. Eduardo Vivas, a member the Company's Board of Directors, serves as the Chief Operating Officer of Humans, Inc., and a member of its board of directors.
The Company had no other material related party transactions for the three months ended March 31, 2024 and 2023.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net income $ 236,183 $ (4,518)
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Alyssa Harvey Dawson [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On March 14, 2024, Alyssa Harvey Dawson, a member of our Board of Directors, entered into a Rule 10b5-1 trading plan providing for the potential sale of up to an aggregate of 8,871 shares of our Class A common stock. 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).
Name Alyssa Harvey Dawson
Title member of our Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 14, 2024
Arrangement Duration 443 days
Aggregate Available 8,871
Eduardo Vivas [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On March 14, 2024, Eduardo Vivas, a member of our Board of Directors, Vivas Family Trust U/A/D 10/26/2020, Arutyunyan Family Trust U/A/D 12/1/20 and La Familia VI, entered into a Rule 10b5-1 trading plan providing for the potential sale of up to an aggregate of (i) 1,875,000 shares of our Class A common stock held by Mr. Vivas personally, (ii) 31,875 shares of our Class A common stock held by Vivas Family Trust U/A/D 10/26/2020, (iii) 27,188 shares of our Class A common stock held by Arutyunyan Family Trust U/A/D 12/1/20, and (iv) 5,625 shares of our Class A common stock held by La Familia V. The trading plan is scheduled to be effective until June 13, 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).
Name Eduardo Vivas
Title member of our Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 14, 2024
Arrangement Duration 456 days
Victoria Valenzuela [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On March 14, 2024, Victoria Valenzuela, our Chief Legal Officer, entered into a Rule 10b5-1 trading plan providing for the potential sale of up to an aggregate of 200,000 shares of our Class A common stock held by Ms. Valenzuela and up to 110,029 additional shares of our Class A common stock issuable upon vesting and settlement of RSUs granted to Ms. Valenzuela, net of shares withheld for taxes. The trading plan is scheduled to be effective until December 31, 2024, 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). A prior disclosure reported that Ms. Valenzuela entered into a Rule 10b5-1 trading plan on September 11, 2023. That disclosure mistakenly reported that the scheduled plan end date of the September 11, 2023 trading plan was May 31, 2025. By its terms the September 11, 2023 trading plan has an end date of May 31, 2024.
Name Victoria Valenzuela
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 14, 2024
Arrangement Duration 292 days
Eduardo Vivas Trading Arrangement, Class A Common Stock [Member] | Eduardo Vivas [Member]  
Trading Arrangements, by Individual  
Aggregate Available 1,875,000
Vivas Family Trust Trading Arrangement, Class A Common Stock [Member] | Eduardo Vivas [Member]  
Trading Arrangements, by Individual  
Aggregate Available 31,875
Arutyunyan Family Trust Trading Arrangement, Class A Common Stock [Member] | Eduardo Vivas [Member]  
Trading Arrangements, by Individual  
Aggregate Available 27,188
La Familia V Trading Arrangement, Class A Common Stock [Member] | Eduardo Vivas [Member]  
Trading Arrangements, by Individual  
Aggregate Available 5,625
Victoria Valenzuela Trading Arrangement, Class A Common Stock [Member] | Victoria Valenzuela [Member]  
Trading Arrangements, by Individual  
Aggregate Available 200,000
Victoria Valenzuela Trading Arrangement, Restricted Stock Units [Member] | Victoria Valenzuela [Member]  
Trading Arrangements, by Individual  
Aggregate Available 110,029
v3.24.1.u1
Description of Business and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
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 26, 2024. The condensed consolidated balance sheet data as of December 31, 2023 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 months ended March 31, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending December 31, 2024 or any other period.
Basis of Consolidation
Basis of Consolidation
The Company's condensed consolidated financial statements include accounts of the Company and its wholly-owned and majority-owned subsidiaries, and the ownership interest of minority investors is recorded as noncontrolling interest. In accordance with the provisions of Accounting Standards Codification ("ASC") 810, Consolidation, the Company is also required to consolidate any variable interest entities ("VIE") when it is the primary beneficiary. The primary beneficiary has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company 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 that are believed to be reasonable under the circumstances. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to fair values of assets and liabilities acquired through acquisitions, useful lives of intangible assets and property and equipment, expected period of consumption of virtual goods, income and indirect taxes, contingent liabilities, evaluation of recoverability of intangible assets and long-lived assets, goodwill impairment, stock-based compensation, 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 Not Yet Adopted)
Recent Accounting Pronouncements (Issued Not Yet Adopted)
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. The amendments will be effective for fiscal
years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments must be applied retrospectively, and early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments will be effective for annual periods beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.
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.
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 from Adjust's measurement and analytics marketing platform that is recognized ratably over the subscription period, generally up to twelve months. Revenue from other services within the Software Platform was not material.
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 and ten months.
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.
v3.24.1.u1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Software Platform Revenue$678,370 $354,758 
In-App Purchase Revenue259,196 251,328 
In-App Advertising Revenue120,549 109,319 
Total Apps Revenue379,745 360,647 
Total Revenue$1,058,115 $715,405 
Schedule of Revenue Disaggregated by Geography
Revenue disaggregated by geography, based on user location, consists of the following (in thousands):
Three Months Ended March 31,
20242023
United States$634,604 $439,319 
Rest of the World423,511 276,086 
Total Revenue$1,058,115 $715,405 
v3.24.1.u1
Financial Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Money market deposit accounts
Cash and cash equivalents
$1,370 $1,370 $— $— 
Total financial assets$1,370 $1,370 $— $— 
As of December 31, 2023
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Money market deposit accounts
Cash and cash equivalents$1,352 $1,352 $— $— 
Total financial assets$1,352 $1,352 $— $— 
v3.24.1.u1
Goodwill and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2024
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 PlatformAppsTotal
December 31, 2023$1,497,109 $345,741 $1,842,850 
Foreign currency translation(15,653)— (15,653)
March 31, 2024$1,481,456 $345,741 $1,827,197 
Schedule of Intangible Assets Acquired, Net
Intangible assets, net consisted of the following (in thousands):
 Weighted-
Average
Remaining
Useful Life
(Years)		As of March 31, 2024As of December 31, 2023
 Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value
 
 
Apps3.6$1,828,387 $(1,225,576)$602,811 $1,818,907 $(1,152,611)$666,296 
Customer relationships7.9516,021 (123,578)392,443 519,175 (111,374)407,801 
User base2.068,817 (49,312)19,505 68,817 (46,874)21,943 
License asset1.859,207 (34,529)24,678 59,207 (31,003)28,204 
Developed technology3.3206,481 (96,599)109,882 207,900 (88,716)119,184 
Other3.573,102 (24,299)48,803 71,196 (21,989)49,207 
Total intangible assets
$2,752,015 $(1,553,893)$1,198,122 $2,745,202 $(1,452,567)$1,292,635 
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 March 31,
20242023
Cost of revenue$88,142 $98,644 
Sales and marketing16,819 16,788 
Total$104,961 $115,432 
v3.24.1.u1
Stock-based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Payment Arrangement Expenses The following table summarizes total stock-based compensation expense by function (in thousands):
Three Months Ended March 31,
20242023
Cost of revenue$1,468 $1,316 
Sales and marketing21,963 16,683 
Research and development59,446 49,929 
General and administrative12,376 15,038 
Total$95,253 $82,966 
v3.24.1.u1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Basic EPS
Numerator:
Net income (loss)
$236,183 $(4,518)
Less:
Income attributable to options exercises by promissory notes(726)— 
Income attributable to common stock subject to share repurchase agreements
(724)— 
Income attributable to unvested early exercised options(1)— 
Net income (loss) attributable to Class A and Class B common stockholders—Basic
$234,732 $(4,518)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic335,794,739 373,160,029 
Net income (loss) per share attributable to common stock—Basic$0.70 $(0.01)
Diluted EPS
Numerator:
Net income (loss) attributable to AppLovin236,183 (4,518)
Less:
Income attributable to options exercises by promissory notes(700)— 
Income attributable to common stock subject to share repurchase agreements
(698)— 
Income attributable to unvested early exercised options(1)— 
Net income (loss) attributable to Class A and Class B common stockholders—Diluted
$234,784 $(4,518)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic335,794,739 373,160,029 
Weighted-average dilutive stock awards
12,801,556 — 
Weighted-average shares used in computing net income (loss) per share—Diluted348,596,295 373,160,029 
Net income (loss) per share attributable to common stock—Diluted
$0.67 $(0.01)
Schedule of Antidilutive Potential Common Shares
The following table presents the forms of antidilutive potential common shares:
As of March 31,
20242023
Stock options exercised for promissory notes85,000 1,399,999 
Early exercised stock options559 38,250 
Stock options12,265 10,582,241 
Unvested RSUs
2,006,934 16,195,182 
ESPP— 842,419 
Total antidilutive potential common shares2,104,758 29,058,091 
v3.24.1.u1
Segments (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Revenue:
Software Platform$678,370 $354,758 
Apps379,745 360,647 
Total Revenue$1,058,115 $715,405 
Segment Adjusted EBITDA:
Software Platform$492,020 $218,694 
Apps56,751 55,004 
Total Segment Adjusted EBITDA$548,771 $273,698 
Interest expense$(74,182)$(74,511)
Other income, net3,397 9,771 
Amortization, depreciation and write-offs(112,667)(128,208)
Loss on disposal of long lived assets(1,646)— 
Non-operating foreign exchange gain (loss)
(106)672 
Stock-based compensation(95,253)(82,966)
Acquisition-related expense(369)(517)
Restructuring costs— (1,292)
Income (loss) before income taxes$267,945 $(3,353)
v3.24.1.u1
Revenue - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Deferred revenue $ 53.0 $ 47.6
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  
v3.24.1.u1
Revenue - Schedule of Revenue Disaggregated by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue from External Customer [Line Items]    
Revenue $ 1,058,115 $ 715,405
Software Platform Revenue | Operating Segments    
Revenue from External Customer [Line Items]    
Revenue 678,370 354,758
Total Apps Revenue    
Revenue from External Customer [Line Items]    
Revenue 379,745 360,647
Total Apps Revenue | Operating Segments    
Revenue from External Customer [Line Items]    
Revenue 379,745 360,647
In-App Purchase Revenue    
Revenue from External Customer [Line Items]    
Revenue 259,196 251,328
In-App Advertising Revenue    
Revenue from External Customer [Line Items]    
Revenue $ 120,549 $ 109,319
v3.24.1.u1
Revenue - Schedule of Revenue Disaggregated by Geography (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Revenue $ 1,058,115 $ 715,405
United States    
Disaggregation of Revenue [Line Items]    
Revenue 634,604 439,319
Rest of the World    
Disaggregation of Revenue [Line Items]    
Revenue $ 423,511 $ 276,086
v3.24.1.u1
Financial Instruments and Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets $ 1,370 $ 1,352
Money market deposit accounts | Cash and cash equivalents    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 1,370 1,352
Level 1    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 1,370 1,352
Level 1 | Money market deposit accounts | Cash and cash equivalents    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 1,370 1,352
Level 2    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 0 0
Level 2 | Money market deposit accounts | Cash and cash equivalents    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 0 0
Level 3    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets 0 0
Level 3 | Money market deposit accounts | Cash and cash equivalents    
Fair Value by Fair Value Hierarchy Level [Line Items]    
Total financial assets $ 0 $ 0
v3.24.1.u1
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2024
Feb. 29, 2024
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Fair Value by Fair Value Hierarchy Level [Line Items]          
Investment     $ 75.1    
Unfunded commitments     22.3    
Capital contributions     18.3    
Investment in equity securities     $ 20.1   $ 10.1
Series C Preferred Stock          
Fair Value by Fair Value Hierarchy Level [Line Items]          
Investment in equity securities   $ 50.0      
Payments to acquire equity securities   $ 10.0      
Series C Preferred Stock | Subsequent Event          
Fair Value by Fair Value Hierarchy Level [Line Items]          
Payments to acquire equity securities $ 40.0        
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     $ 75.1   $ 56.7
Interest Rate Swap          
Fair Value by Fair Value Hierarchy Level [Line Items]          
Loss on derivative       $ 5.6  
v3.24.1.u1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2024
Feb. 29, 2024
Mar. 31, 2024
Dec. 31, 2023
May 31, 2022
Other Commitments [Line Items]          
Amended contractual obligation         $ 550.0
Commitment unpaid     $ 135.3    
Unfunded commitments     22.3    
Series C Preferred Stock          
Other Commitments [Line Items]          
Payments to acquire equity securities   $ 10.0      
Series C Preferred Stock | Subsequent Event          
Other Commitments [Line Items]          
Payments to acquire equity securities $ 40.0        
Standby Letters of Credit          
Other Commitments [Line Items]          
Letters of credit outstanding     6.3 $ 6.3  
Private Equity Funds          
Other Commitments [Line Items]          
Payments for purchase obligations     88.1    
Unfunded commitments     $ 22.3    
v3.24.1.u1
Goodwill and Intangible Assets - Schedule of Goodwill Activity (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Balance at beginning of period $ 1,842,850
Foreign currency translation (15,653)
Balance at end of period 1,827,197
Operating Segments | Software Platform  
Goodwill [Roll Forward]  
Balance at beginning of period 1,497,109
Foreign currency translation (15,653)
Balance at end of period 1,481,456
Operating Segments | Apps  
Goodwill [Roll Forward]  
Balance at beginning of period 345,741
Foreign currency translation 0
Balance at end of period $ 345,741
v3.24.1.u1
Goodwill and Intangible Assets - Schedule of Intangible Assets Acquired, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Net Book Value $ 1,198,122 $ 1,292,635
Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 2,752,015 2,745,202
Accumulated Amortization (1,553,893) (1,452,567)
Net Book Value $ 1,198,122 1,292,635
Apps | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 3 years 7 months 6 days  
Gross Carrying Value $ 1,828,387 1,818,907
Accumulated Amortization (1,225,576) (1,152,611)
Net Book Value $ 602,811 666,296
Customer relationships | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 7 years 10 months 24 days  
Gross Carrying Value $ 516,021 519,175
Accumulated Amortization (123,578) (111,374)
Net Book Value $ 392,443 407,801
User base | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 2 years  
Gross Carrying Value $ 68,817 68,817
Accumulated Amortization (49,312) (46,874)
Net Book Value $ 19,505 21,943
License asset | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 1 year 9 months 18 days  
Gross Carrying Value $ 59,207 59,207
Accumulated Amortization (34,529) (31,003)
Net Book Value $ 24,678 28,204
Developed technology | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 3 years 3 months 18 days  
Gross Carrying Value $ 206,481 207,900
Accumulated Amortization (96,599) (88,716)
Net Book Value $ 109,882 119,184
Other | Long -Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Useful Life (Years) 3 years 6 months  
Gross Carrying Value $ 73,102 71,196
Accumulated Amortization (24,299) (21,989)
Net Book Value $ 48,803 $ 49,207
v3.24.1.u1
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Amortization Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Amortization of intangible assets $ 104,961 $ 115,432
Cost of revenue    
Finite-Lived Intangible Assets [Line Items]    
Amortization of intangible assets 88,142 98,644
Sales and marketing    
Finite-Lived Intangible Assets [Line Items]    
Amortization of intangible assets $ 16,819 $ 16,788
v3.24.1.u1
Equity (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Feb. 29, 2024
Aug. 31, 2023
May 31, 2023
Feb. 28, 2022
Class of Stock [Line Items]            
Stock repurchased, value $ 752,224,000 $ 76,358,000        
Class A Common Stock            
Class of Stock [Line Items]            
Stock repurchase program, authorized amount     $ 1,250,000,000 $ 447,600,000 $ 296,000,000 $ 750,000,000
Repurchases of stock - repurchase program (in shares) 13,466,397 5,396,617        
Stock repurchased, value $ 752,200,000 $ 76,400,000        
Stock repurchase program, remaining authorized repurchase amount $ 500,000,000          
Shares issued (in shares) 16,069,801          
Class B Common Stock            
Class of Stock [Line Items]            
Shares converted (in shares) 16,069,801          
v3.24.1.u1
Stock-based Compensation - Narrative (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Feb. 29, 2024
USD ($)
shares
Mar. 31, 2024
USD ($)
plan
$ / shares
shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Number of equity compensation plans | plan     3
Wurl Incentive Plan      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Liability settled | $   $ 15.7  
Share-based compensation arrangement by share-based payment award, shares issued in period | shares   346,836  
Common stock available in cash | $   $ 2.1  
Performance Based Restricted Stock Units      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Number of PSU's vested (in shares) | shares 3,416,490    
Common stock, par or stated value per share (in dollars per share) | $ / shares $ 46.75   $ 46.75
Accelerated stock-based compensation expense | $     $ 17.9
Unvested RSUs      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Restricted stock units granted (in shares) | shares     103,671
Restricted stock units granted (in dollars per share) | $ / shares     $ 49.57
Unvested RSUs | Minimum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Award vesting period     1 year
v3.24.1.u1
Stock-based Compensation - Schedule of Stock-based Payment Arrangement Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 95,253 $ 82,966
Cost of revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 1,468 1,316
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 21,963 16,683
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense 59,446 49,929
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock-based compensation expense $ 12,376 $ 15,038
v3.24.1.u1
Earnings Per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net income $ 236,183 $ (4,518)
Income attributable to options exercises by promissory notes (726) 0
Income attributable to common stock subject to share repurchase agreements (724) 0
Income attributable to unvested early exercised options (1) 0
Net income (loss) attributable to common stock—Basic $ 234,732 $ (4,518)
Denominator:    
Weighted-average shares used in computing net income (loss) per share—Basic (in shares) 335,794,739 373,160,029
Net income (loss) per share attributable to common stock—Basic (in dollars per share) $ 0.70 $ (0.01)
Numerator:    
Net income (loss) $ 236,183 $ (4,518)
Income attributable to options exercises by promissory notes (700) 0
Income attributable to common stock subject to share repurchase agreements (698) 0
Income attributable to unvested early exercised options (1) 0
Net income (loss) attributable to Class A and Class B common stockholders—Diluted $ 234,784 $ (4,518)
Denominator:    
Weighted-average shares used in computing net income (loss) per share—Basic (in shares) 335,794,739 373,160,029
Weighted-average dilutive stock awards (in shares) 12,801,556 0
Weighted-average shares used in computing net income (loss) per share—Diluted (in shares) 348,596,295 373,160,029
Net income (loss) per share attributable to AppLovin common stockholders—Diluted (in dollars per share) $ 0.67 $ (0.01)
v3.24.1.u1
Earnings Per Share - Schedule of Antidilutive Potential Common Shares (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 2,104,758 29,058,091
Stock options exercised for promissory notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 85,000 1,399,999
Early exercised stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 559 38,250
Stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 12,265 10,582,241
Unvested RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 2,006,934 16,195,182
ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive potential common shares (in shares) 0 842,419
v3.24.1.u1
Segments - Narrative (Details)
 3 Months Ended
Mar. 31, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.24.1.u1
Segments - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue $ 1,058,115 $ 715,405
Adjusted EBITDA 548,771 273,698
Interest expense (74,182) (74,511)
Amortization, depreciation and write-offs (112,667) (128,208)
Stock-based compensation (95,253) (82,966)
Income (loss) before income taxes 267,945 (3,353)
Segment Reconciling Items    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Interest expense (74,182) (74,511)
Other income, net 3,397 9,771
Amortization, depreciation and write-offs (112,667) (128,208)
Loss on disposal of long lived assets (1,646) 0
Non-operating foreign exchange gain (loss) (106) 672
Stock-based compensation (95,253) (82,966)
Acquisition-related expense (369) (517)
Restructuring costs 0 (1,292)
Software Platform Revenue | Operating Segments    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue 678,370 354,758
Adjusted EBITDA 492,020 218,694
Apps    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue 379,745 360,647
Apps | Operating Segments    
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]    
Revenue 379,745 360,647
Adjusted EBITDA $ 56,751 $ 55,004
v3.24.1.u1
Credit Agreement (Details)
$ in Millions
 1 Months Ended 2 Months Ended 3 Months Ended
Mar. 31, 2024
USD ($)
Mar. 31, 2024
USD ($)
Feb. 29, 2024
Mar. 31, 2024
USD ($)
KKR Denali Holdings L P        
Line of Credit Facility [Line Items]        
Percentage of voting interests       0.10
Line of Credit        
Line of Credit Facility [Line Items]        
Debt modification costs       $ 6.2
Secured Debt | 2030 Term Loans | Line of Credit        
Line of Credit Facility [Line Items]        
Aggregate amount $ 2,090.0 $ 2,090.0   2,090.0
Secured Debt | 2028 Term Loans | Line of Credit        
Line of Credit Facility [Line Items]        
Aggregate amount 1,460.0 $ 1,460.0   1,460.0
Secured Debt | Secured Overnight Financing Rate (SOFR) | Line of Credit        
Line of Credit Facility [Line Items]        
Debt instrument, basis spread on variable rate   2.50% 3.10%  
Secured Debt | Base Rate | Line of Credit        
Line of Credit Facility [Line Items]        
Debt instrument, basis spread on variable rate   1.50% 2.00%  
Revolving Credit Facility | KKR Corporate Lending (CA) LLC        
Line of Credit Facility [Line Items]        
Revolving credit commitments 15.0 $ 15.0   $ 15.0
Revolving Credit Facility | Line of Credit        
Line of Credit Facility [Line Items]        
Drawdown   $ 418.7    
Repayment of revolving credit facility $ 603.7      
v3.24.1.u1
Related Party Transactions (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 08, 2024
Mar. 06, 2024
Feb. 29, 2024
Aug. 07, 2020
Mar. 08, 2019
Mar. 31, 2024
Mar. 31, 2023
Class A Common Stock              
Related Party Transaction [Line Items]              
Repurchases of stock - repurchase program (in shares)           13,466,397 5,396,617
Shares issued (in shares)           16,069,801  
Class B Common Stock              
Related Party Transaction [Line Items]              
Shares converted (in shares)           16,069,801  
Related Party              
Related Party Transaction [Line Items]              
Related party note         $ 2.3    
Interest rate, related party debt       0.41% 2.59%    
Repayment of related party note $ 2.3            
Related Party | Class A Common Stock              
Related Party Transaction [Line Items]              
Repurchases of stock - repurchase program (in shares)   10,466,397          
Repurchased shares (in dollar per share)   $ 54.46          
Shares issued (in shares)           16,000,000  
Related Party | Class B Common Stock              
Related Party Transaction [Line Items]              
Shares converted (in shares)           16,000,000  
Secondary Offering              
Related Party Transaction [Line Items]              
Number of shares issued in transaction (in shares)     19,866,397