APPLOVIN CORP, 10-K filed on 3/11/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Mar. 04, 2022
Jun. 30, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Entity Shell Company false    
Entity Public Float     $ 15,450
Documents Incorporated by Reference Portions of the registrant’s proxy statement for the 2022 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021.    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2021    
Entity Central Index Key 0001751008    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   297,163,913  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   78,662,622  
v3.22.0.1
Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location San Jose, California
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 1,520,504 $ 317,235
Restricted cash equivalents 1,050,000 0
Accounts receivable, net 514,520 296,964
Prepaid expenses and other current assets 150,040 48,795
Total current assets 3,235,064 662,994
Property and equipment, net 63,608 28,587
Operating lease right-of-use assets 70,975 84,336
Goodwill 966,427 249,773
Intangible assets, net 1,709,347 1,086,332
Other assets 118,158 42,571
Total assets 6,163,579 2,154,593
Current liabilities:    
Accounts payable 258,220 147,275
Accrued liabilities 133,770 95,057
Licensed asset obligation 17,374 18,760
Short-term debt 25,810 15,210
Deferred revenue 78,930 86,886
Operating lease liabilities 18,392 22,206
Deferred acquisition costs, current 107,601 212,658
Total current liabilities 640,097 598,052
Non-current liabilities:    
Long-term debt 3,201,834 1,583,990
Operating lease liabilities, non-current 62,498 71,755
Licensed asset obligation, non-current 8,039 0
Other non-current liabilities 112,820 59,032
Total liabilities 4,025,288 2,312,829
Commitments and Contingencies (Note 5)
Redeemable noncontrolling interest 201 309
Stockholders’ equity (deficit):    
Convertible preferred stock, 100,000,000 and 109,090,908 shares authorized, nil and 109,090,908 shares issued and outstanding as of December 31, 2021 and 2020; respectively 0 399,589
Class A, Class B and Class F common stock, $0.00003 par value—1,700,000,000 (Class A 1,500,000,000, Class B 200,000,000, Class F nil) and 429,600,000 (Class A 386,400,000, Class B nil, Class F 43,200,000) shares authorized, 375,089,360 (Class A 296,426,738, Class B 78,662,622, Class F nil) and 226,364,401 (Class A 183,800,251, Class B nil, Class F 42,564,150) shares issued and outstanding as of December 31, 2021 and 2020, respectively 11 7
Additional paid-in capital 3,160,487 453,655
Accumulated other comprehensive income (loss) (45,454) 604
Accumulated deficit (976,954) (1,012,400)
Total stockholders’ equity (deficit) 2,138,090 (158,545)
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity (deficit) $ 6,163,579 $ 2,154,593
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2021
Dec. 31, 2020
Preferred stock, shares issued (in shares) 0  
Preferred stock, shares outstanding (in shares) 0  
Common stock, par or stated value per share (in dollars per share) $ 0.00003 $ 0.00003
Common stock, shares authorized (in shares) 1,700,000,000 429,600,000
Common stock, shares issued (in shares) 375,089,360 226,364,401
Common stock, shares outstanding (in shares) 375,089,360 226,364,401
Convertible Preferred Stock    
Preferred stock, shares authorized (in shares) 100,000,000 109,090,908
Preferred stock, shares issued (in shares) 0 109,090,908
Preferred stock, shares outstanding (in shares) 0 109,090,908
Common Class A    
Common stock, shares authorized (in shares) 1,500,000,000 386,400,000
Common stock, shares issued (in shares) 296,426,738 183,800,251
Common stock, shares outstanding (in shares) 296,426,738 183,800,251
Common Class B    
Common stock, shares authorized (in shares) 200,000,000 0
Common stock, shares issued (in shares) 78,662,622 0
Common stock, shares outstanding (in shares) 78,662,622 0
Common Class F    
Common stock, shares authorized (in shares) 0 43,200,000
Common stock, shares issued (in shares) 0 42,564,150
Common stock, shares outstanding (in shares) 0 42,564,150
v3.22.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Revenue $ 2,793,104 $ 1,451,086 $ 994,104
Costs and expenses:      
Cost of revenue 988,095 555,578 241,274
Sales and marketing 1,129,892 627,796 481,781
Research and development 366,402 180,652 44,966
General and administrative 158,699 66,431 31,712
Lease modification and abandonment of leasehold improvements 0 7,851 0
Extinguishments of acquisition-related contingent consideration 0 74,820 0
Total costs and expenses 2,643,088 1,513,128 799,733
Income (loss) from operations 150,016 (62,042) 194,371
Other income (expense):      
Interest expense and loss on settlement of debt (103,170) (77,873) (73,955)
Other income (expense), net (535) 4,209 5,818
Total other expense (103,705) (73,664) (68,137)
Income (loss) before income taxes 46,311 (135,706) 126,234
Provision for (benefit from) income taxes 10,973 (9,772) 7,194
Net income (loss) 35,338 (125,934) 119,040
Add: Net loss attributable to noncontrolling interest 108 747 0
Net income (loss) attributable to AppLovin 35,446 (125,187) 119,040
Less: Net income attributable to participating securities (3,743) 0 (42,664)
Net income (loss) attributable to common stock—Basic 31,703 (125,187) 76,376
Net income (loss) attributable to common stock—Diluted $ 31,879 $ (125,187) $ 76,561
Net income (loss) per share attributable to common stockholders:      
Basic (in dollars per share) $ 0.10 $ (0.58) $ 0.36
Diluted (in dollars per share) $ 0.09 $ (0.58) $ 0.36
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders:      
Basic (in shares) 324,836,076 214,936,545 210,937,147
Diluted (in shares) 342,763,632 214,936,545 212,365,429
v3.22.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 35,338 $ (125,934) $ 119,040
Other comprehensive income (loss), net of tax:      
Foreign currency translation gain (loss), net of tax effect of $12.4 million, nil and nil, respectively (46,058) 579 (11)
Interest rate swap gain (loss), net of tax effect of nil, $1.7 million and $0.4 million, respectively 0 4,165 (1,511)
Total other comprehensive income (loss) (46,058) 4,744 (1,522)
Add: Net loss attributable to noncontrolling interest 108 747 0
Total comprehensive loss attributable to AppLovin $ (10,612) $ (120,443) $ 117,518
v3.22.0.1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Foreign currency translation gain (loss) tax component $ 12.4 $ 0.0 $ 0.0
Interest rate swap gain tax component $ 0.0 $ 1.7 $ 0.4
v3.22.0.1
Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders’ Equity (Deficit) - USD ($)
$ in Thousands
Total
IPO
Equity Grants
ESPP
Class A, Class B, and Class F Common Stock
Class A, Class B, and Class F Common Stock
IPO
Class A, Class B, and Class F Common Stock
Equity Grants
Class A, Class B, and Class F Common Stock
ESPP
Additional Paid-In Capital
Additional Paid-In Capital
IPO
Additional Paid-In Capital
Equity Grants
Additional Paid-In Capital
ESPP
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Redeemable Noncontrolling Interest
Convertible Preferred Stock
Preferred Stock
Convertible Preferred Stock
Preferred Stock
IPO
Balance at beginning of period at Dec. 31, 2018                             $ 0    
Increase (Decrease) in Temporary Equity [Roll Forward]                                  
Net income (loss) $ 0                                
Balance at end of period at Dec. 31, 2019                             0    
Balance at beginning of period (in shares) at Dec. 31, 2018         178,446,087                     109,090,908  
Balance at beginning of period at Dec. 31, 2018 (378,355)       $ 5       $ 230,922       $ (2,618) $ (1,006,253)   $ 399,589  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Exercises and vesting of early exercised Class A common stock options (in shares)             6,771,873                    
Exercises and vesting of early exercised Class A common stock options     $ 2,940       $ 1       $ 2,939            
Repurchase of unvested Class A common stock related to early exercised stock (in shares)         (8,595)                        
Repurchase of unvested Class A common stock related to early exercised stock options (11)               (11)                
Repurchase of Class A common stock (in shares)         (2,775,000)                        
Repurchase of Class A common stock (9,074)               (9,074)                
Repurchase of unvested restricted stock awards (in shares)         (360,552)                        
Exercise of warrant (in shares)         34,816,317                        
Exercise of warrant 1       $ 1                        
Issuance of Class A common stock in connection with acquisitions (in shares)         3,267,792                        
Issuance of Class A common stock in connection with acquisitions 192               192                
Stock-based compensation 10,222               10,222                
Other comprehensive income (loss), net (1,522)                       (1,522)        
Net income (loss) 119,040                         119,040      
Balance at end of period (in shares) at Dec. 31, 2019         220,157,922                     109,090,908  
Balance at end of period at Dec. 31, 2019 (256,567)       $ 7       235,190       (4,140) (887,213)   $ 399,589  
Increase (Decrease) in Temporary Equity [Roll Forward]                                  
Issuance of Class A common stock in exchange for noncontrolling equity interest 1,500               1,500           (1,500)    
Acquisition of noncontrolling interest                             2,556    
Net income (loss) 747                           (747)    
Balance at end of period at Dec. 31, 2020 309                           309    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Exercises and vesting of early exercised Class A common stock options (in shares)         3,559,168                        
Exercises and vesting of early exercised Class A common stock options 2,303               2,303                
Repurchase of unvested Class A common stock related to early exercised stock (in shares)         (425,001)                        
Repurchase of Class A common stock (in shares)         (249,000)                        
Repurchase of Class A common stock (1,766)               (1,766)                
Issuance of common stock warrants and options in connection with an acquisition 39,040               39,040                
Issuance of Class A common stock in connection with acquisitions (in shares)         2,479,996                        
Issuance of Class A common stock in connection with acquisitions 106,133               106,133                
Issuance of common stock warrants in connection with lease modification 433               433                
Issuance of Class A common stock (in shares)         764,472                        
Issuance of Class A common stock 9,318               9,318                
Issuance of Class A common stock in exchange for noncontrolling equity interest (in shares)         76,844                        
Issuance of Class A common stock in exchange for noncontrolling equity interest 1,500               1,500           (1,500)    
Stock-based compensation 61,504               61,504                
Other comprehensive income (loss), net 4,744                       4,744        
Net income (loss) (125,187)                         (125,187)      
Balance at end of period (in shares) at Dec. 31, 2020         226,364,401                     109,090,908  
Balance at end of period at Dec. 31, 2020 (158,545)       $ 7       453,655       604 (1,012,400)   $ 399,589  
Increase (Decrease) in Temporary Equity [Roll Forward]                                  
Net income (loss) 108                           (108)    
Balance at end of period at Dec. 31, 2021 201                           $ 201    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Exercises and vesting of early exercised Class A common stock options (in shares)             4,326,297                    
Exercises and vesting of early exercised Class A common stock options     $ 29,761               $ 29,761            
Repurchase of Class A common stock (in shares)         (604,509)                        
Exercise of warrant (in shares)         6,229,081                        
Issuance of Class A common stock (in shares)         90,830     42,303                  
Issuance of Class A common stock 2,503     $ 2,877         2,503     $ 2,877          
Issuance of Class A common stock in connection with initial public offering, net of offering costs, underwriting discounts and commissions (in shares)         22,500,000                        
Issuance of Class A common stock in connection with initial public offering, net of offering costs, underwriting discounts and commissions 1,747,971       $ 1       1,747,970                
Conversion of securities to common stock (in shares)         7,050,049 109,090,908                     (109,090,908)
Conversion of securities to common stock 392,170 $ 0       $ 3     392,170 $ 399,586             $ (399,589)
Stock-based compensation 131,965               131,965                
Other comprehensive income (loss), net (46,058)                       (46,058)        
Net income (loss) 35,446                         35,446      
Balance at end of period (in shares) at Dec. 31, 2021         375,089,360                     0  
Balance at end of period at Dec. 31, 2021 $ 2,138,090       $ 11       $ 3,160,487       $ (45,454) $ (976,954)   $ 0  
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Activities      
Net income (loss) $ 35,338 $ (125,934) $ 119,040
Adjustments to reconcile net income (loss) to operating activities:      
Amortization, depreciation and write-offs 431,063 254,951 92,806
Amortization of debt issuance costs and discount 12,825 8,152 4,979
Stock-based compensation 133,177 62,387 10,222
Change in operating right-of-use asset 26,313 9,333 2,602
Lease modification and abandonment of leasehold improvements 0 7,851 0
Loss on extinguishments of acquisition related contingent consideration 0 74,820 0
Change in fair value of contingent consideration (230) 442 0
Loss on settlement of debt 18,236 0 0
Net unrealized gains on fair value remeasurement of financial instruments (8,841) (4,180) 0
Net loss (gain) on foreign currency remeasurement (1,734) 2,097 14
Changes in operating assets and liabilities:      
Accounts receivable (201,948) (113,234) (33,524)
Prepaid expenses and other current assets (97,324) (13,289) (19,867)
Other assets (45,938) (19,092) (1,485)
Accounts payable 98,612 49,120 13,534
Operating lease liabilities (26,854) (8,812) (2,242)
Accrued and other liabilities 3,063 2,783 5,661
Deferred revenue (13,907) 35,488 6,722
Net cash provided by operating activities 361,851 222,883 198,462
Investing Activities      
Purchase of property and equipment (1,390) (3,241) (3,358)
Acquisitions, net of cash acquired (1,206,482) (674,650) (404,196)
Purchase of non-marketable investments and other (15,000) (2,000) (4,000)
Proceeds from other investing activities 12,009 0 0
Capitalized software development costs (4,067) 0 0
Net cash used in investing activities (1,214,930) (679,891) (411,554)
Financing Activities      
Proceeds from issuance of common stock in initial public offering, net of issuance costs as adjusted for cost reimbursement 1,745,228 0 0
Proceeds from debt issuance, net of issuance costs 2,329,059 481,273 388,859
Payments of debt principal (719,810) (64,295) (11,208)
Payments of finance leases (15,271) (9,708) (5,663)
Proceeds from exercise of stock options 31,156 2,303 2,637
Proceeds from issuance of common stock 0 9,318 0
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan 2,877 0 0
Payments of deferred acquisition costs (234,068) (17,586) (41,454)
Payments of licensed asset obligation (17,970) (18,940) 0
Payments of related party notes (11,655) 0 0
Repurchases of common stock 0 (1,766) (11)
Payments of deferred IPO costs 0 (2,744) 0
Net cash provided by financing activities 3,109,546 377,855 333,160
Effect of foreign exchange rate on cash, cash equivalents and restricted cash equivalents (3,198) 141 60
Net increase (decrease) in cash, cash equivalents and restricted cash equivalents 2,253,269 (79,012) 120,128
Cash, cash equivalents and restricted cash equivalents at beginning of the period 317,235 396,247 276,119
Cash, cash equivalents and restricted cash equivalents at end of the period 2,570,504 317,235 396,247
Supplemental non-cash investing and financing activities disclosures:      
Conversion of convertible securities to Class A common stock 392,170 0 0
Issuance of convertible securities related to acquisitions 342,170 45,000 0
Acquisitions not yet paid 79,095 94,758 0
Assets acquired not yet paid 25,640 0 0
Assets acquired under finance leases 20,497 7,475 3,061
Settlement of bonus compensation through issuance of common stock 2,503 0 0
Acquisition of business through issuance of common stock and common stock warrants 0 38,167 192
Settlement of contingent consideration through issuance of common stock 0 31,422 0
Deferred IPO costs not yet paid 0 888 0
Accretion of interest on related party promissory notes 595 553 48
Common stock issued in exchange for redeemable noncontrolling interest 0 1,500 0
Repurchases of common stock from related parties financed by promissory notes 0 0 9,074
Interest expense offset by non-cash financing activities 0 0 3,549
Common stock warrant issued in connection with lease modification 0 433 0
Supplemental disclosure of cash flow information:      
Cash paid for income taxes 90,616 12,666 30,474
Cash paid for interest on debt $ 76,695 $ 59,360 $ 62,278
v3.22.0.1
Description of Business
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
AppLovin Corporation (the “Company” or “AppLovin” or “we”) was incorporated in the state of Delaware on July 18, 2011. The Company is a leader in the mobile app industry with a focus on building a software-based platform for mobile app developers to improve the marketing and monetization of their apps. The Company also has a globally diversified portfolio of apps—free-to-play mobile games that it operates through its own or partner studios.
The Company’s operations are headquartered in Palo Alto, California, and has several operating locations in the U.S. as well as various international office locations in North America, Asia and Europe.
Initial Public Offering and Capital Structure Change
The Company’s registration statement on Form S-1 (the “IPO Registration Statement”) related to its IPO was declared effective on April 14, 2021, and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on April 15, 2021. On April 19, 2021, the Company completed its IPO, in which the Company sold 22,500,000 shares of Class A common stock at price to the public of $80.00 per share. The Company received aggregate net proceeds of $1.75 billion after deducting underwriting discounts and commissions of $47.2 million and offering expenses of $7.9 million subject to certain cost reimbursements. KKR Capital Markets LLC ("KKR Capital Markets") was an underwriter for the IPO and is an affiliate of KKR Denali Holdings L.P. (“KKR Denali”), who is a principal stockholder of the Company. The Company used $400.0 million of the net proceeds from the IPO to repay the entire outstanding amount under the revolving credit facility (See Note 9). KKR Capital Markets is a lender under the revolving credit facility and an affiliate of KKR Denali, a principal stockholder of the Company. 
Following the effectiveness of the IPO Registration Statement, the Company filed its Amended and Restated Certificate of Incorporation, which became effective immediately prior to the closing of the IPO (the “IPO Certificate”). The IPO Certificate authorizes a total of 1,500,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, 150,000,000 shares of Class C common stock, and 100,000,000 shares of preferred stock. Upon the filing and effectiveness of the IPO Certificate, all shares of Class F common stock and Series A convertible preferred stock then outstanding automatically converted into the equivalent number of shares of Class A common stock, respectively (the “Capital Stock Conversions”). Following the Capital Stock Conversions and immediately prior to the completion of the IPO, a total of 150,307,622 shares of Class A common stock held by Adam Foroughi, the Company’s co-founder, CEO, and Chairperson; Herald Chen, the Company’s President, Chief Financial Officer, and a member of the Company’s board of directors; and KKR Denali (collectively with certain affiliates, the Class B Stockholders) were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements.
v3.22.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation—The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Consolidated financial statements include accounts and operations of the Company and its subsidiaries in which the Company has a controlling financial interest. In accordance with the provisions of Accounting Standards Codifications ("ASC") 810, the Company consolidates any variable interest entities ("VIE") where it is the primary beneficiary. The Company engages in business relationships with certain entities in the ordinary course of business to develop game Apps. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. We do not consolidate a VIE in which we have a majority ownership interest when we are not considered the primary beneficiary. The Company evaluates its relationships with all VIEs on an ongoing basis. All intercompany transactions and balances have been eliminated upon consolidation.
Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, the Company evaluates its estimates, including 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 among others. The Company bases its estimates on assumptions, both historical and forward-looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Risk and Uncertainties—The Company is subject to risks and uncertainties, including, but not limited to, as a result of the warfare in Ukraine and related sanctions against Russia, as well as, the COVID-19 pandemic. As of the issuance date of these consolidated financial statements, the Company’s results of operations have not been materially impacted. However, the future impact of these events remains uncertain as the response to and information related to these events is rapidly evolving. Economies worldwide have been negatively impacted by the COVID-19 pandemic and the events in the Ukraine and Russia are expected to have a further impact on the global economy. A weakened global economy may negatively impact in-app purchasing decisions and consumer buying decisions across the globe generally, which could adversely affect advertiser activity. The full impact of these events on the global economy and the extent to which these events may impact the Company’s business, financial condition, and results of operations in the future remains uncertain. The severity of the impact of the war in Ukraine, Russian sanctions and the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of these events and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms and uncertain demand.
Revenue from Contracts with Customers—The Company generates Business and Consumer revenue. Business Revenue includes fees paid by mobile app advertisers that use the Company’s software platform (“Software Platform”), and revenue generated from the sale of digital advertising inventory of the Company’s apps (“Apps”). Consumer Revenue consists of mobile in-app purchases (“IAPs”) made by users within Apps.
Business Revenue
The Software Platform provides the technology to match advertisers and third-party owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The pricing and terms for all mobile advertising arrangements are governed by the Company’s terms and conditions and generally stipulate payment terms of 30 days subsequent to the end of the month. The contract is fully cancellable at any time.
For Business Revenue generated through placement of advertisements on mobile applications owned by Publishers, the Company’s performance obligation is to provide an advertiser with access to the Software Platform which facilitates the advertiser’s purchase of advertising inventory from Publishers. The Company does not control the advertising inventory prior to its transfer to the advertiser, the Company’s customer, because the Company does not have the substantive ability to direct the use of, nor obtain substantially all of the remaining benefits from the advertising inventory. The Company is not primarily responsible for fulfillment and does not have any inventory risk. The Company is an agent as it relates to the sale of third-party advertising inventory and presents revenue on a net basis. The transaction price is the product of either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers.
Advertisers purchase Apps advertising inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of advertising inventory through Ad Networks is recognized net of the amounts retained by Ad Networks as the Company is unable to determine the gross amount paid by the advertisers to Ad Networks.
The Company recognizes mobile advertising revenue when the agreed upon action is completed or when the ad is displayed to users, depending on the agreed upon pricing mechanism with an advertiser or Ad Network. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period.
Consumer Revenue
IAPs include fees collected from users for the purchase of virtual goods to enhance their gameplay experience. The identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items over the estimated period of time the virtual items are available to the user or until the virtual item is consumed. The Company categorizes its virtual goods as either consumable or durable. Consumable virtual goods represent goods that can be consumed by a specific player action in gameplay; accordingly, the Company recognizes revenue from the sale of consumable virtual goods as the goods are consumed and the Company’s performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the user over an extended period of time; accordingly, the Company recognizes revenue from the sale of durable virtual goods ratably over the period of time the goods are available to the user and the Company’s performance obligation is satisfied, which is generally the estimated average user life (“EAUL”). Payment is required at the time of purchase and the purchase price is a fixed amount. Users make IAPs through the Company’s distribution partners. The transaction price is equal to the gross amount charged to users because the Company is the principal in the transaction. IAPs fees are non-refundable. Such payments are initially recorded to deferred revenue.
The EAUL represents the Company’s best estimate of the expected life of paying users for the applicable game. The EAUL begins when a user makes a first purchase of durable virtual goods and ends when a user is determined to be inactive. The Company determines the EAUL on a game-by-game basis. For a newly launched game that has limited
playing data, the Company determines its EAUL based on the EAUL of a game that has sufficiently similar characteristics. The Company determines the EAUL on a quarterly basis and applies such calculated EAUL to all bookings in the respective quarter. Determining the EAUL is subjective and requires management’s judgment. Future playing patterns may differ from historical playing patterns, and therefore the EAUL may change in the future. The EAULs are generally between six and nine months.
The Company presents taxes collected from customers and remitted to governmental authorities on a net basis.
Disaggregation of Revenue
The following table present revenue disaggregated by type (in thousands):
Year Ended
December 31,
202120202019
Business Revenue—Software Platform$673,952 207,285 $198,305 
Business Revenue—Apps660,557 503,867 397,643 
Total Business Revenue1,334,509 711,152 595,948 
Consumer Revenue1,458,595 739,934 398,156 
Total Revenue$2,793,104 $1,451,086 $994,104 
Revenue disaggregated by geography, based on user location, consists of the following (in thousands):
Year Ended
December 31,
202120202019
United States$1,687,080 $895,987 $622,051 
Rest of the World1,106,024 555,099 372,053 
Total Revenue$2,793,104 $1,451,086 $994,104 
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of the satisfaction of performance obligations. During the years ended December 31, 2021 and 2020, the Company recognized $86.9 million and $8.2 million of revenue that was included in deferred revenue as of December 31, 2020 and 2019, respectively.
Unsatisfied Performance Obligations
All of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.
Cash and Cash Equivalents—Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds with maturities of 90 days or less from the date of purchase.
Restricted Cash Equivalents—The Company classifies cash equivalents that are legally or contractually restricted for withdrawal or usage as restricted cash equivalents. Restricted cash equivalents as of December 31, 2021 consisted of investments in certain money market fund of funds held in an escrow account related to the MoPub acquisition, which was closed in January 2022.
Accounts Receivable, net—The Company records accounts receivable at the invoiced amount, maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables, and reviews accounts receivable periodically to identify specific customers with known disputes or collectability issues. As of December 31, 2021 and 2020, the allowance for doubtful accounts was not material.
Derivatives—The Company accounts for derivative instruments at fair value. Interest rate swaps may qualify as cash flow hedges. Changes in the interest rate swaps that qualify as cash flow hedges are recorded within accumulated other comprehensive income (loss). Amounts recorded within accumulated other comprehensive income (loss) are reclassified to earnings in a manner that matches the earnings impact of the hedged interest expense. The Company’s policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item.
Fair Value of Financial Instruments—The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly.
Level 3—Unobservable inputs of which there is little or no market data, which require the Company to develop its own assumptions.
Concentration of Credit Risk and Uncertainties—The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash equivalents and accounts receivable. The Company places its cash deposits with large, reputable financial institutions. As of December 31, 2021 and 2020, the Company maintained cash balances in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits. Cash equivalents consist of money market funds that are composed of U.S. Treasury and U.S. Government securities.
The Company’s accounts receivable balance is derived from both domestic and international sales. The Company reviews its exposure to accounts receivable credit risk and generally requires no collateral for its accounts receivable.
The Company uses various distribution partners to collect and remit payments from users of Apps for virtual goods. As of December 31, 2021, two distribution partners accounted for 10% of the accounts receivable, net. As of December 31, 2020, two distribution partners accounted for 20% and 13% of the accounts receivable, net.
No individual customer accounted for 10% or more of the Company’s accounts receivable or revenue during the years ended December 31, 2021, 2020 and 2019.
Property and Equipment, net—Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is as follows:
Useful Life
Computer equipment
3-5 years
Software and licenses
3 years
Furniture and fixtures
3-5 years
Leasehold improvements
Over the shorter of useful life (up to 10 years) or lease term
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. Maintenance and repairs are charged to operations as incurred.
Leases—Leases consist of real estate property, network and other equipment. The Company determines if an arrangement is or contains a lease at inception. Operating and finance lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of the fixed payments under the arrangement, less any lease incentives. The Company generally use an incremental borrowing rate estimated based on the information available at the lease commencement date to determine the present value of lease payments, unless the implicit rate is readily determinable. Operating lease costs are recognized on a straight-line basis over the lease terms. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease terms.
The Company accounts for lease and non-lease components as a single lease component of contracts for real estate property leases and does not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Generally, the lease term is based on non-cancelable lease term when determining the lease assets and liabilities. The lease terms may include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of real estate taxes, common area maintenance, and insurance.
Deferred Offering Costs—Deferred offering costs, which consist primarily of accounting, legal and other fees directly attributable to the Company’s initial public offering (“IPO”), are capitalized in other assets on the Company’s consolidated balance sheets. Upon the completion of an IPO, the deferred offering costs are presented in stockholders’ equity as a reduction of the IPO proceeds. As of December 31, 2021 and 2020, deferred offering costs included in other assets on the Company’s consolidated balance sheets were nil and $3.6 million, respectively.
Segment Reporting—The Company’s chief operating decision-maker is the Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. There are no segment managers who are held accountable by the chief operating decision-maker, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has a single reportable and operating segment structure.
Asset Acquisitions and Business Combinations—The Company performs an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test suggests that the set of assets and activities is a business, the Company then performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination.
For transactions accounted for as business combinations, the Company allocates the fair value of acquisition consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair value. Acquisition consideration includes the fair value of any promised contingent consideration. The excess of the fair value of acquisition consideration over the fair value of identifiable assets acquired and liabilities assumed is recorded as goodwill. Contingent consideration is remeasured to its fair value each reporting period with changes in the fair value of contingent consideration recorded in general and administrative expenses. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates and assumptions in valuing certain identifiable intangible assets include, but are not limited to, forecasted revenue and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are expensed as incurred.
For transactions accounted for as asset acquisitions, the cost, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. The Company generally includes contingent consideration in the cost of the assets acquired only when the uncertainty is resolved. The Company recognizes contingent consideration adjustments to the cost of the acquired assets prospectively using the straight-line method over the remaining useful life of the assets. No goodwill is recognized in asset acquisitions.
Services and Development Agreements—The Company enters into strategic agreements with mobile gaming studios (“Partner Studios”). The Company has historically allowed these Partner Studios to continue their operations with a significant degree of autonomy. In some cases, the Company bought Apps from Partner Studios and entered into service and development agreements whereby Partner Studios provide support in improving existing Apps and developing new Apps. The substantial majority of payments associated with service agreements for existing Apps are expensed to research and development when the services are rendered as the payments primarily relate to developing enhancements for the Apps. Payments for new Apps associated with development agreements are generally made in connection with the development of a particular App, and therefore, the Company is subject to development risk prior to the release of the App. Accordingly, payments that are due prior to completion of an App are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of an App are generally capitalized and expensed as cost of revenue. See Note 6, “Acquisitions” for additional information.
Software Development Costs—The Company incurs development costs related to internal-use software and the development of Apps. The Company reviews software development costs on a quarterly basis to determine if the costs qualify for capitalization. The Company typically follows an agile and iterative development process. As a result, the preliminary project stage remains ongoing until just prior to launch, at which time final feature selection occurs. As such, software development costs do not meet the criteria for capitalization and are expensed as incurred to research and development expenses. The software development costs the Company capitalized during the year ended December 31, 2021 were not material. The Company did not capitalize any software development costs during the years ended December 31, 2020 and December 31, 2019.
Goodwill—Goodwill is allocated to reporting units and tested for impairment on an annual basis during the fourth quarter, or more frequently if the Company believes indicators of impairment exist. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. When conducting quantitative annual goodwill impairment assessments, the Company compares the fair value of its reporting units to their carrying value. If the carrying value of a reporting unit exceeds its fair value, then the Company records a goodwill impairment. The lesser of (i) the entire amount by which the carrying value of a reporting unit exceeds its fair value or (ii) the carrying value of goodwill allocated to such reporting unit is recorded as an impairment to goodwill. As of December 31, 2021, 2020 and 2019, no impairment of goodwill has been identified.
Intangible Assets—This consists of identifiable intangible assets, primarily Apps, user base, developed technology and intellectual property licenses resulting from acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. The Company’s estimates of useful lives of intangible assets are based on cash flow forecasts which incorporate various assumptions, including forecasted user acquisition costs, user attrition rates and level of user engagement.
Intangible assets also include costs of intellectual property that the Company licenses from third parties for use of their content in the Company’s game. The licensing agreements include license payments, which are due over the terms of the agreements. The Company recognizes these license payments as a license asset and a license obligation at the fair value on the contract date, based on a discounted cash flow model. The amortization of the licensed asset is recorded in cost of revenue on a straight-line basis over the remaining license terms. The classification of the license obligations between current and long-term is based on the expected timing of the payments to the licensor.
Impairment of Long-Lived Assets—The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, the Company assesses the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense equal to the amount required to reduce the carrying value of the assets to the estimated fair value is recorded as an impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and internal forecasts. For example, if future operating results do not meet current forecasts, the Company may be required to record future impairment charges for acquired intangible assets. Additional factors which significantly affect future cash flows related to long-lived assets include, but are not limited to, forecasted user acquisition costs, user attrition rates and level of user engagement. Significant changes in these factors may require the Company to reassess recoverability of long-lived assets and record impairment. Impairment charges could materially decrease future net income and result in lower asset values on the Company’s consolidated balance sheet. There were no material impairment charges recorded for the years ended December 31, 2021, 2020 and 2019.
Cost of Revenue—Cost of revenue consists primarily of third-party payment processing fees related to Consumer Revenue and paid to the Company’s distribution partners, amortization of intangible assets related to acquired technology and Apps, and expenses associated with operating network infrastructure which include bandwidth, energy, and other equipment costs related to the co-located data centers and costs for third-party cloud service providers.
Sales and Marketing—Sales and marketing expenses consist primarily of user acquisition costs, other advertising expenses, sales incentives, and amortization of acquired separately-identifiable user- related intangible assets. Related costs associated with these functions such as, marketing programs, travel, customer service costs as well as allocated facilities and information technology costs are also included in sales and marketing expenses. Costs for advertising are expensed as incurred. Advertising costs, which consist primarily of user acquisition costs, totaled $983.7 million, $550.9 million, and $436.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Research and Development—Research and development expenses include new product development costs such as salaries and employee benefits, consulting costs, stock-based compensation, regulatory compliance costs as well as allocated facilities and information technology costs.
General and Administrative—General and administrative expenses include costs associated with the Company’s finance, accounting, legal, human resources, and administrative personnel. Related costs associated with these functions, such as attorney and accounting fees, recruiting services, administrative services, insurance, travel, as well as allocated facilities and information technology costs are also included in general and administrative expenses.
Stock-Based Compensation—The Company accounts for stock-based compensation based on the fair value of awards as of the grant date. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period and accounts for forfeitures as they occur.

    Prior to IPO, the fair value of employee stock options are estimated using the Black-Scholes option-pricing model, which requires use of various assumptions including the expected term, the expected stock price volatility, and the risk- free interest rate. The Company estimates the expected term using the simplified method which is based on the mid-point between the weighted-average time to vesting and the contractual maturity. The Company estimates the volatility of its common stock on the date of grant based on the weighted average historical stock price volatility of comparable publicly-traded companies. The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options. Following the IPO, the Company has granted RSUs for which the fair value is established based on the closing price of the Company's publicly traded Class A common stock on the date of grant.
The Company recognizes stock-based compensation expense related to shares issued pursuant to the Employee Stock Purchase Plan ("ESPP") on a straight-line basis over the offering period, which is generally 24 months. The Company estimates the fair value of shares to be issued under the ESPP using the Black-Scholes option-pricing model.

    Stock-based compensation expense also includes liability classified options to employees that may be settled in the stock of one of the Company’s subsidiaries.
Income Taxes—The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, an adjustment to the deferred tax asset valuation allowance would be made to reduce the provision for income taxes.
The Company records uncertain tax positions on the basis of a two-step process in which determinations are made (1) whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (2) for those tax positions that meet the more- likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with a tax authority.
The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets.
Foreign Currency Transactions—Generally, the functional currency of our international subsidiaries is the U.S. dollar. In cases where the functional currency is not the U.S. dollar, the Company translates the financial statements of these subsidiaries to U.S. dollars using the exchange rate at the prevailing consolidated balance sheet date for assets and liabilities, and average exchange rates during the period for revenue and costs and expenses. The Company records translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. The Company reflects foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income (expense), net.
Comprehensive Income (Loss)—Comprehensive income (loss) is composed of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of gains and losses on cash flow hedges and foreign currency translation adjustments.
Net Income (Loss) Per Share Attributable to Common Stockholders—Basic and diluted net income (loss) per share attributable to common stockholders is presented under the two-class method required for participating securities. The Company considers its convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested stock options and unvested restricted stock awards to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested common stock options and unvested restricted stock awards as the holders of these instruments do not have a contractual obligation to share in the Company’s losses. Net income is attributed to common stockholders and participating securities based on their participation rights. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options.
Noncontrolling Interests and Redeemable Noncontrolling Interests—For less-than-wholly-owned consolidated subsidiaries, noncontrolling interest is the portion of equity not attributable, directly or indirectly, to AppLovin. The Company evaluates whether noncontrolling interests possess any redemption features outside of our control. If such features exist, the noncontrolling interests are presented outside of permanent equity on the consolidated balance sheets within redeemable noncontrolling interest. The Company report revenues, expenses and net income (loss) from less-than-wholly-owned consolidated subsidiaries at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests; the income or loss attributable to the noncontrolling interest holders is reflected in net income or loss attributable to noncontrolling interest on the consolidated statements of operation. Redeemable noncontrolling interests are adjusted to the greater of their fair value or carrying value as of each balance sheet date.
Recent Accounting Pronouncements (Issued and Not Yet Adopted)—In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion feature and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and simplifies
classification of debt on the balance sheet and earnings per share calculation. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes.
In October 2021, the FASB issued ASU 2021-08, Business Combinations—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The amendments improve comparability by specifying for all acquired revenue contracts regardless of their timing of payment (i) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (ii) how to measure those contract assets and contract liabilities. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. These changes will become effective for the Company on January 1, 2023. The Company is currently evaluating the potential impact of these changes.
Recent Accounting Pronouncements (Issued and Adopted)—In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The ASU impacts various topic areas within ASC 740, including accounting for taxes under hybrid tax regimes, accounting for increases in goodwill, allocation of tax amounts to separate company financial statements within a group that files a consolidated tax return, intra period tax allocation, interim period accounting, and accounting for ownership changes in investments, among other minor codification improvements. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption.
In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging. This ASU clarifies the interaction among the accounting standards for equity securities, equity method investments and certain derivatives. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption.
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Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth the Company’s financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis as of the dates indicated (in thousands):
As of December 31, 2021
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Unrestricted Balances
Money market fundsCash and cash equivalents$1,070,979 $1,070,979 $— $— 
Marketable equity securitiesPrepaid expenses and other current assets$2,532 $2,532 $— $— 
Restricted Balances
Money market fundsRestricted cash equivalents $1,050,000 $1,050,000 $— $— 
Total financial assets$2,123,511 $2,123,511 $— $— 

As of December 31, 2020
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Asset:
Money market fundsCash and cash equivalents$6,413 $6,413 $— $— 
Embedded derivativeLong-term debt$5,680 $— $— $5,680 
Total financial assets$12,093 $6,413 $— $5,680 
Financial Liability:
Convertible securityDeferred acquisition costs, current$46,500 $— $— $46,500 
Convertible Security
In November 2020, the Company issued a convertible security as part of the consideration exchanged for certain mobile game Apps acquired from an independent foreign-based mobile game developer, as discussed in Note 6. The Company has elected to account for the convertible security using the fair value option. Under the fair value option, the financial liability is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair
value on a recurring basis at each reporting period date. The fair value of the convertible security was determined using the probability-weighted expected return method (“PWERM”). This valuation methodology is based on unobservable estimates and judgements, and therefore is classified as a Level 3 fair value measurement. Upon issuance the significant unobservable input used in the fair value measurement of the convertible security is the expected timing of occurrence of an IPO and a discount for lack of marketability derived based on the remaining term of the lock up period related to the Company’s Class A common stock into which the convertible security is convertible.
In August 2021, the lock-up period to which the Class A common stock was subject expired and the fair value of the related convertible security was transferred from Level 3 to Level 1. Upon the expiration of the lock-up period, the holder elected to convert the convertible security with a stated value of $20.0 million into 405,205 shares of the Company's Class A common stock at a conversion price of $49.40 per share. In October 2021, the holder elected to convert the remaining convertible security with a stated value of $20.0 million into 324,156 shares of the Company's Class A common stock at a conversion price of $61.70 per share. As a result of these conversions, the convertible security was fully settled and the related liability was reclassified into the Company's consolidated stockholders' equity. During the year ended December 31, 2021 and 2020, the Company recorded a total loss of $3.5 million and $1.5 million, respectively, in other income (expense), net in the Company’s consolidated statements of operations due to the change in fair value of the convertible security prior to settlement.
Embedded Derivative
Loans issued under the Credit Agreement contain certain interest adjustment feature that was determined to be an embedded derivative requiring bifurcation and separate accounting, as discussed in Note 9. The embedded derivative was initially valued and remeasured using a “with-and-without” method. The “with-and-without” methodology involves valuing the whole instrument with and without the embedded derivative using a discounted cash flow approach. The difference of the estimated fair value between the instrument with the embedded derivative and the instrument without the embedded derivative is the fair value of the embedded derivative. This valuation methodology is based on unobservable estimates and judgements, and therefore is classified as a Level 3 fair value measurement. The significant unobservable input used in the fair value measurement of the embedded derivative is the expected timing of occurrence of an IPO. Fair value measurements are highly sensitive to changes in these inputs and significant changes in these inputs would result in a significantly higher or lower fair value. The initial fair value of the embedded derivative was determined to be nominal for term loans issued prior to 2021 and $5.6 million for the term loans issued in February 2021, which was accounted for as a reduction to the carrying amount of the term loans. After the effectiveness of the IPO Registration Statement, the applicable margins for both the Term Loans and the Revolving Credit Loans were reduced by 0.25% on April 16, 2021 in accordance with the pre-existing terms of the Credit Agreement. As a result, the embedded derivative for the contingent interest adjustment feature related to the term loans was settled. The Company remeasured the embedded derivative to its fair value of $17.8 million on the settlement date, and then reclassified it to the carrying amount of the term loans. For the years ended December 31, 2021 and 2020, the Company recorded a total gain of $7.6 million and $5.7 million, respectively, in other income (expense), net in the Company’s consolidated statements of operations due to the change in fair value of the embedded derivative prior to settlement.
Marketable Equity Securities
The Company’s marketable equity securities consist entirely of its investment in the ordinary shares of Huuuge, Inc., a foreign-based independent mobile game developer, which completed its initial public offering and became listed on the Warsaw Stock Exchange in the first quarter of 2021. The Company had carried the investment at cost in other assets on the Company’s consolidated balance sheets in prior fiscal years. The cost basis of the investment was immaterial. The fair value of the marketable equity securities was based on the quoted market price of Huuuge, Inc.’s ordinary shares as of December 31, 2021, and therefore was classified as a Level 1 fair value measurement. For the year ended December 31, 2021, the Company recorded a total unrealized gain of $2.5 million in other income (expense), net in the Company’s consolidated statements of operations as a result of remeasuring the investment to fair value.
The following table presents a reconciliation of the Company’s financial asset and liability measured at fair value as of December 31, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands):
Embedded
Derivative		Convertible
Security
Balance as of December 31, 2019$— $— 
Balance as of Initial fair value recognition— 45,000 
Change in fair value recognized in earnings5,680 1,500 
Balance as of December 31, 2020$5,680 $46,500 
Addition related to the issuance of term loans in February 20215,630 — 
Extinguishment of term loans in February 2021(1,130)— 
Change in fair value recognized in earnings7,640 3,500 
Settlement(17,820)— 
Transfers— (50,000)
Balance as of December 31, 2021$— $— 
v3.22.0.1
Supplemental Financial Statement Information
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Information Supplemental Financial Statement Information
Property and equipment, net consists of the following (in thousands):
December 31,
20212020
Computer equipment$77,730 $33,977 
Leasehold improvements18,640 18,176 
Furniture and fixtures3,686 2,824 
Software and licenses3,211 3,191 
Total property and equipment103,267 58,168 
Less: accumulated depreciation(39,659)(29,581)
Total property and equipment, net$63,608 $28,587 
Depreciation expenses were $25.6 million, $14.2 million and $7.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
As of December 31, 2021 and 2020, networking equipment under finance leases with a cost basis of $63.6 million and $21.0 million, respectively, was included in computer equipment.
Accrued liabilities consists of the following (in thousands):
December 31,
20212020
Tax accruals and withholdings$67,159 $40,127 
Compensation and related liabilities32,862 39,076 
Finance lease liabilities21,999 2,821 
Accrued expenses and other11,750 13,033 
Total accrued liabilities$133,770 $95,057 
v3.22.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments—As of December 31, 2021, the Company's non-cancelable minimum purchase commitments totaled $262.5 million, which consisted primarily of a certain arrangement related to cloud platform services. Future minimum payments under these non-cancelable purchase commitments were as follows (in thousands):
2022$15,465
202358,483
202469,140
202586,270
202633,094
Total non-cancelable purchase commitments
$262,452 
The Company made purchases of $55.0 million under these non-cancelable purchase commitments for the year ended December 31, 2021. Purchases made were not material for the year ended, December 31, 2020 and 2019.
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 December 31, 2021 and 2020, the Company had outstanding letters of credit in the aggregate amount of $11.1 million, which were issued as security for certain leased office facilities under the Credit Agreement (see Note 9). 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 consolidated statements of operations in connection with the indemnification provisions have not been material. As of December 31, 2021, the Company did not have any material indemnification claims that were probable or reasonably possible.
Non-income Taxes—The Company may be subject to audit by various tax authorities with regard to non-income tax matters. The subject matter of non-income tax audits primarily arises from different interpretations on tax treatment and tax rates applied. The Company accrues liabilities for non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss.
v3.22.0.1
Acquisitions
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
2021 Acquisitions
Business Combinations
On April 20, 2021, the Company acquired adjust GmbH (“Adjust”), a mobile application tracking and analytics company. The Company purchased all of the outstanding shares of the capital stock of Adjust and settled all of Adjust’s debt for the stated purchase consideration of $980.0 million, which was composed of $352.0 million stated value of convertible securities convertible into a variable number of shares of the Company's Class A common stock at a variable conversion price, $50.0 million of cash holdback, and remaining amount of $578.0 million in cash consideration. The fair value of the convertible securities and fair value of the cash holdback are estimated to be $342.2 million and $47.6 million, respectively. As such, the fair value of the acquisition consideration is determined to be $967.8 million. The transaction is expected to expand the Company’s Software solutions and has been accounted for as a business combination. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $3.1 million.
The following table summarizes the preliminary allocation of the purchase consideration to the acquisition-date fair value of the assets acquired and liabilities assumed (in thousands):
Provisional Amounts at December 31, 2021
Cash and cash equivalents$12,155 
Accounts receivable and other current assets21,840 
Intangible assets
Customer Relationships—estimated useful life of 12 years
155,000 
Developed Technology—estimated useful life of 6 years
77,000 
Tradename—estimated useful life of 5 years
8,000 
Goodwill761,747 
Operating lease right-of-use assets8,130 
Property and equipment, net1,897 
Finance lease right-of-use assets43,156 
Other assets16,791 
Accounts payable, accrued liabilities and other current liabilities(15,540)
Deferred revenue(5,600)
Operating lease liabilities(8,130)
Finance lease liabilities(43,156)
Deferred income tax liability(65,473)
Total purchase consideration$967,817 
The Company initially recorded $1.6 million of deferred tax assets and $66.3 million of deferred tax liabilities for the deferred tax effects associated with the fair value of assets and liabilities assumed using the applicable tax rates, with a corresponding adjustment to goodwill. During the current year, the Company recognized a decrease of $0.8 million to deferred tax liabilities and an increase of $13.6 million to deferred tax assets related to measurement period adjustments, with a corresponding adjustment to goodwill. The adjustments to the preliminary purchase price allocation were the result of finalizing the analysis for the preliminary purchase price allocation. Such measurement period adjustments are reflected in the table above.
The above allocation of the purchase price is still provisional and subject to change within the measurement period, including potential adjustments to deferred tax balances as tax returns are finalized and as additional information is received. The final allocation of the purchase price is expected to be completed as soon as practicable, but no later than one year from the date of the acquisition close.
The income approach was used to determine the preliminary fair value of the customer relationships, developed technology and tradename. Goodwill represents the excess of the purchase price over the preliminary fair value of identifiable assets acquired and liabilities assumed at the acquisition date and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. For tax purposes, an estimated tax deductible goodwill of $692.5 million was generated as a result of this acquisition.
The Company’s consolidated statement of operations for the twelve months ended December 31, 2021 includes Adjust’s revenue of $77.9 million and pre-tax loss of $37.1 million for the period from the acquisition date of April 20, 2021 to December 31, 2021.
See Pro forma results of operations below under "Supplemental Pro Forma Information".
In May 2021, the convertible securities were converted into 6,320,688 shares of the Company's Class A common stock with a fair value of $342.2 million. As a result, the fair value of the convertible securities was reclassified into the stockholders' equity.
Asset Acquisitions
In April 2021, the Company completed two separate transactions to acquire certain mobile Apps from two foreign-based independent mobile game developers in exchange for an aggregate upfront cash consideration of $300.0 million and potential future earn-out payments. The Company incurred a total transaction cost of $6.0 million related to these transactions. Both transactions were accounted for as asset acquisitions with $306.0 million allocated to the acquired mobile Apps, which will be amortized over approximately eight years. Concurrent with the closings of these transactions,
the Company entered into a development services agreement with each of the independent mobile game developers to support the acquired mobile Apps, as well as to develop new mobile Apps during the four-year term of the agreement. With respect to the first transaction, the potential future earn-out payments are contingent on the revenue generated by the acquired mobile Apps exceeding a certain revenue threshold, which will be measured and payable (if applicable) each year for four years from the date of the transaction. With respect to the second transaction, the potential future earn-out payments will be determined in a manner similar to the first transaction, in addition to a potential one-time earn-out payment of $50.0 million contingent on the achievement of a certain monthly revenue milestone within the four years following the date of the transaction.
In June 2021, the Company acquired certain mobile Apps from a foreign-based independent mobile game developer in exchange for an upfront cash consideration of $130.0 million and future earn-out payments. The Company incurred a total transaction cost of $4.0 million related to the transaction. The transaction was accounted for as an asset acquisition with $134.0 million allocated to the acquired mobile Apps, which will be amortized over nine years. Concurrent with the closing of the transaction, the Company entered into a development services agreement with the independent mobile game developer to support the acquired mobile Apps, as well as to develop new mobile Apps during the four-year term of the agreement. With respect to all initially acquired mobile Apps, the potential future earn-out payments are contingent on the revenue and/or earnings before interest, taxes, depreciation and amortization ("EBITDA") generated by the acquired mobile Apps exceeding certain thresholds.
In August 2021, the Company acquired certain mobile Apps from a foreign-based independent mobile game developer in exchange for a total cash consideration of $150.0 million. The transaction was accounted for as an asset acquisition with $150.0 million allocated to the acquired mobile Apps, which will be amortized over six years.
During the year ended December 31, 2021, the Company also completed a number of other asset acquisitions for an aggregate cash consideration of $53.7 million, as well as potential future earn-out payments that are contingent on the revenue and/or profit generated by the acquired mobile Apps.
During the year ended December 31, 2021, the Company recognized total earn-out costs of $116.6 million, of which $77.1 million and $14.8 million related to asset acquisitions that were closed in 2020 and 2019, respectively. These earn-out costs increased the book value of the acquired mobile Apps, and are amortized over the remaining useful life of the originally acquired mobile Apps.
In January 2021, the Company paid $60.0 million to Recoded, an independent foreign-based mobile game developer, in relation to a new mobile App acquired in 2020. In February 2021, the Company paid an additional $90.0 million to Recoded related to deferred cash consideration for an asset acquisition closed in 2019.
2020 Acquisitions
Business Combinations
Geewa—On January 31, 2020, the Company acquired Geewa A.S. (“Geewa”), a privately held company specializing in mobile gaming. The transaction is expected to expand the Company’s Apps portfolio and has been accounted for as a business combination. The Company purchased all of the outstanding shares of the capital stock of Geewa for a total consideration of $25.6 million of which $23.5 million was paid in cash and the unpaid balance was attributed to a $2.1 million indemnity holdback that will be paid in the next 12 months. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $0.3 million.
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$1,043 
Accounts receivable and other current assets
1,457 
Intangible assets
Apps—estimated useful life of 5 years
17,040 
Tradename—estimated useful life of 5 years
260 
Developed Technology—estimated useful life of 2 years
590 
Property, equipment and other tangible assets
369 
Goodwill
9,805 
Accounts payable, accrued liabilities and other liabilities
(4,935)
Total purchase consideration
$25,629 
The income approach was used to value the developed Apps and tradename. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and assumed liabilities acquired and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is not deductible for tax purposes.
Pro forma results of operations have not been presented because the effect of the acquisition was not material to the consolidated statements of operations.
Redemption Games—On April 6, 2020, the Company acquired Redemption Games, Inc. (“Redemption Games”), a privately held company specializing in mobile gaming. The transaction is expected to expand the Company’s Apps portfolio and has been accounted for as a business combination. As part of the transaction, the Company purchased 95.5% of the outstanding shares of the capital stock of Redemption Games for an aggregate total consideration of $53.7 million. Based on the consideration paid and the percent acquired, the transaction implied a total value for Redemption of $56.2 million. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $0.6 million. In November 2020, the Company increased its ownership in Redemption Games to 98.2% by exchanging 2.7% of minority shares for the Company’s Class A common stock. The difference between the $4.5 million in fair value of the Class A common stock issued and the $1.5 million in fair value of the minority shares was recognized as stock-based compensation in research and development expenses.
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$2,787 
Accounts receivable, net
1,850 
Intangible Assets
Apps—estimated useful life of 5 years
44,000 
Tradename—estimated useful life of 5 years
900 
Goodwill
20,198 
Other tangible assets
131 
Accounts payable
(2,492)
Other liabilities
(11,142)
Total valuation
56,232 
Redeemable noncontrolling interest
(2,556)
Total purchase consideration
$53,676 
The income approach was used to value the developed Apps and tradename. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and assumed liabilities acquired and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is not deductible for tax purposes.
Pro forma results of operations have not been presented because the effect of the acquisition was not material.
Machine Zone, Inc.—On May 19, 2020, the Company acquired Machine Zone, Inc. (“Machine Zone”), a privately held company specializing in mobile gaming. The transaction is expected to expand the Company’s Apps portfolio and has been accounted for as a business combination. The Company purchased all of the outstanding shares of the capital stock of Machine Zone and settled all Machine Zone debt for an aggregate acquisition price of $328.6 million comprising $287.1 million cash paid to Machine Zone lenders, common stock warrants issued to Machine Zone lenders and preferred stockholders with the aggregate fair value of $38.2 million and a settlement of the preexisting accounts receivable balance of $3.3 million. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $2.8 million.
As part of the Machine Zone acquisition the Company assumed an IP license agreement with a third-party game content provider with future fixed payments of $37.1 million as of the acquisition date.
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$37,767 
Accounts receivable and other current assets
27,284 
Intangible assets
Tradename—estimated useful life of 10 years
13,000 
Apps—estimated useful life of 3—5 years
272,000 
IP license—useful life of 2 years
28,551 
Goodwill
82,353 
Right-of-use assets under operating leases
125,639 
Property, equipment and other tangible assets
42,312 
Accounts payable, accrued liabilities and other liabilities
(81,591)
Deferred revenue
(43,200)
License obligations
(35,685)
Operating lease liabilities
(139,875)
Total purchase consideration
$328,555 
The income approach was used to value the developed Apps and tradename. The replacement cost approach was used to value the IP license asset. Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and assumed liabilities acquired and is primarily attributable to the assembled workforce and expected synergies at the time of the acquisition. Goodwill is deductible for tax purposes.
Contemporaneously with the closing of the acquisition, the Company exited from one of Machine Zone’s real estate leases. The Company accounted for this lease termination as a transaction separate from the business combination since the lease termination was negotiated primarily for the benefit of the combined entity; the Company was the party who directly negotiated this lease amendment with the lessor; and such negotiation took place contemporaneously with the negotiation of the business combination. The Company decreased the operating lease right-of-use asset and operating lease liability by $57.6 million and $63.1 million, respectively. The Company also wrote-off $15.0 million of leasehold improvements and other assets related to this real estate lease. In connection with this transaction the Company issued a common stock warrant with the fair value of $0.4 million.
The Company’s consolidated statements of operations include Machine Zone’s revenue of $113.8 million and pre-tax loss of $89.7 million for the period from the acquisition date of May 19, 2020 to December 31, 2020.
See Pro forma results of operations below under "Supplemental Pro Forma Information".
Asset Acquisitions
Zenlife asset acquisition—In June 2020, the Company acquired certain mobile Apps from an independent foreign-based mobile game developer in exchange for an upfront cash consideration of $160.0 million and future earn-out payments for each of the four years from the date of the transaction based on the excess, if any, of revenue generated by the initially acquired mobile App for such year above the sum of (i) an annual fixed baseline revenue and (ii) the aggregate earn-out payments made in prior years. The transaction was accounted for as an asset acquisition with $173.3 million allocated to the acquired mobile Apps and $13.3 million to deferred tax liability. The recorded value of acquired mobile Apps is amortized over five years. Additionally, the Company entered into a service and development agreement with the independent mobile game developer to support the initially acquired mobile Apps as well as to develop new mobile Apps during the four-year term of the agreement. The Company is also required to make future earn-out payments for newly developed mobile Apps determined under the similar approach as for the initially acquired mobile Apps.
Athena asset acquisition—In November 2020, the Company acquired certain mobile game Apps from an independent foreign-based mobile game developer in exchange for upfront cash consideration of $110.0 million, deferred cash consideration of $20.0 million due in the next 18 months with an acquisition-date fair value of $19.0 million, a convertible security with a principal amount of $40.0 million and the acquisition date fair value of $45.0 million, and future earn-out payments for each of the four years from the date of the transaction based on (i)(a) the revenue generated by the initially acquired game Apps in excess of (b) a certain revenue threshold, multiplied by (ii) a predetermined revenue multiple. The Company determined that the convertible security represents predominantly a share-settled obligation and recognized the instrument as a level 3 liability. For details regarding the fair value measurement of and the accounting for the convertible security, see Note 3. The transaction was accounted for as an asset acquisition with $170.7 million allocated to the acquired mobile game Apps, $4.0 million allocated to the acquired tradename, and the remaining $0.7 million allocated to deferred tax liability. The recorded value of acquired mobile game Apps and tradename is amortized over 6 years. Additionally, the Company entered into a service and development agreement with the independent mobile game developer to support the initially acquired mobile game Apps as well as to develop new game Apps during the four-year
term of the agreement. The Company is not required to make additional earn-out payments for any new game Apps developed.
Other asset acquisitions—In March and April 2020, the Company completed two asset acquisitions to acquire two mobile Apps from two separate independent foreign-based mobile game developers in exchange for an aggregate upfront cash consideration of $35.0 million and future earn-out payments. Both transactions were accounted for as asset acquisitions with $35.0 million allocated to the acquired mobile Apps, which will be amortized over three and five years. Additionally, the Company entered into service and development agreements with the independent mobile game developers to support the initially acquired mobile Apps as well as to develop new mobile Apps. With respect to the first asset acquisition, future earn-out payments are based on a predetermined percentage of revenue net of certain direct costs generated by the initially acquired mobile App, or additional mobile Apps developed under the service and development agreement, over the term of the agreement, which is initially two years, but which may renew for an additional two-year term. With respect to the second asset acquisition, future earn-out payments for each of the four years from the date of the transaction are based on (i)(a) the revenue generated by the initially acquired mobile App and any additional mobile Apps developed under the service and development agreement over the term of four years in excess of (b) a baseline revenue threshold, multiplied by (ii) tiered revenue multiples, up to a cumulative amount of $45.0 million.
Modification of asset acquisition-related contingent consideration—In September 2020, the Company amended the terms of an asset acquisition to settle the acquisition holdback and the earn-out due to the sellers 12 months following the acquisition’s closing in 2019. Under the terms of the amendment, the Company agreed to settle a $34.8 million liability related to an acquisition holdback and earn-out, with a combination of a cash payment of $3.4 million and the Company’s Class A common stock at the fair value of $106.1 million as of the settlement date, resulting in a $74.7 million extinguishment loss of the acquisition-related contingent consideration.
During the year ended December 31, 2020, the Company also completed a number of other asset acquisitions for an aggregate cash consideration of $46.4 million, substantially all of which was attributable to acquired mobile game Apps.
During the year ended December 31, 2020, the Company recognized total earn-out costs of $38.8 million, of which $31.9 million related to asset acquisitions that were closed in 2019. These earn-out costs increased the book value of the acquired mobile Apps, and are amortized over the remaining useful life of the originally acquired mobile Apps.
Supplemental Pro Forma Information
The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Machine Zone and Adjust for each of the periods presented as if Adjust had been acquired as of January 1, 2020 and Machine Zone had been acquired as of January 1, 2019 (in thousands):
Year Ended December 31,
202120202019
Revenue
$2,829,060 $1,625,476 $1,332,476 
Net income (loss)
36,614 (179,415)(105,353)
The unaudited supplemental pro forma information above include the following adjustments to net income (loss) in the appropriate pro forma periods (in thousands):
Year Ended December 31,
202120202019
An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results$(7,325)$(48,006)$(61,969)
A net increase (decrease) in revenue related to fair value adjustment$1,901 $54,126 $(61,928)
A decrease (increase) in expenses related to transaction expenses$14,115 $(2,327)$— 
An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions$(2,640)$93,432 $147,943 
A (decrease) in other income - liability classified warrants$— $(1,730)$(9,040)
An (increase) in tax provision$(1,381)$(21,906)$(3,305)
The unaudited supplemental pro forma information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisitions taken place on the date indicated, or of the Company's future consolidated results of operations. The supplemental pro forma information presented above has been derived from the Company's historical consolidated financial statements and from the historical accounting records of Adjust and Machine Zone.
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets, Net Goodwill and Acquired Intangible Assets, Net
The following table presents goodwill activity (in thousands):
December 31, 2019$137,121 
Goodwill acquired112,356 
Foreign currency translation296 
December 31, 2020$249,773 
Goodwill acquired762,553 
Foreign currency translation(45,899)
December 31, 2021$966,427 
Weighted-
Average
Remaining
Useful Life
(Years)		As of December 31, 2021As of December 31, 2020
Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value
Long-lived intangible assets:
Apps5.0$1,939,180 $(529,012)$1,410,168 $1,222,417 $(232,832)$989,585 
Customer Relationships11.3145,870 (8,442)137,428 — — — 
User base4.368,817 (27,369)41,448 68,817 (17,617)51,200 
License asset1.525,640 — 25,640 28,551 (10,918)17,633 
Developed technology5.287,851 (21,435)66,416 14,946 (8,489)6,457 
Other5.634,895 (6,648)28,247 23,321 (1,864)21,457 
Total long-lived intangible assets2,302,253 (592,906)1,709,347 1,358,052 (271,720)1,086,332 
Short-lived intangible assets:
Apps0.440,348 (38,724)1,624 29,869 (25,599)4,270 
Total intangible assets$2,342,601 $(631,630)$1,710,971 $1,387,921 $(297,319)$1,090,602 
As of December 31, 2021 and 2020, short-lived mobile Apps were included in prepaid expenses and other current assets.
The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$373,726 $228,339 $74,787 
Sales and marketing22,661 11,587 7,641 
Total$396,387 $239,926 $82,428 

As of December 31, 2021, the expected future amortization expense related to acquired intangible assets is estimated as follows (in thousands):
2022$339,254 
2023329,084 
2024320,537 
2025320,537 
2026313,223 
Thereafter88,336 
Total$1,710,971 
v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 2021
Lessee Disclosure [Abstract]  
Leases LeasesThe Company leases real estate property under operating leases. The Company also leases networking equipment under arrangements with certain providers of IT infrastructure services which were accounted as finance leases or short-term operating leases.
The Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest it would have to pay to borrow on a collateralized basis with an equal lease payment amount, over a similar term, and in a similar economic environment.
Operating Leases—The Company has entered into various non-cancelable operating leases primarily for our office facilities. The most significant leases are related to the Company's corporate headquarters in Palo Alto, California. As of December 31, 2021, the remaining lease terms varied from 2 months to 8.2 years. For certain leases the Company has an option to extend the lease term for periods varying from 2 to 5 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term greater than 12 months, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payments.
Further, the Company leases certain networking equipment, colocation space and office space under lease arrangements with terms 12 months or less, which are classified as short-term leases.
The table below presents the operating lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Operating lease right-of-use assets$70,975$84,336Operating lease right-of-use assets
Current operating lease liabilities$18,392$22,206Operating lease liabilities
Non-current operating lease liabilities$62,498$71,755Operating lease liabilities, non-current
Weighted-average remaining term (years)5.33.7
Weighted-average discount rate5.0%4.7%
The table below presents certain information related to the lease costs for operating leases which are allocated to cost of revenue, sales and marketing, research and development, and general and administrative expenses (in thousands):
Year Ended December 31,
202120202019
Operating lease cost$28,676 $17,372 $3,520 
Short-term lease cost9,683 8,196 3,231 
Variable lease cost7,862 2,147 479 
Total lease cost$46,221 $27,715 $7,230 
Cash paid for amounts included in the measurement of operating lease liabilities was $25.5 million, $23.8 million and $3.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Right-of-use assets acquired under operating leases was $6.1 million , $10.8 million and $7.4 million for the years ended December 31, 2021 , 2020 and 2019, respectively.
Finance Leases—The Company has entered into various non-cancelable finance leases primarily for networking equipment with weighted average remaining lease term of approximately 2.5 years. The Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payments.
The table below presents the finance lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Finance lease right-of-use assets$44,575 $5,067 Property and equipment, net
Current finance lease liabilities$21,999 $2,821 Accrued liabilities
Non-current finance lease liabilities$24,085 $2,340 Other non-current liabilities
Weighted-average remaining term (years)2.50.6
Weighted-average discount rate5.0 %6.0 %
The Company recognized depreciation expenses related to finance lease of networking equipment of $17.8 million, $8.4 million and $5.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognized interest expenses related to finance lease of networking equipment of $1.5 million, $0.3 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Cash paid for amounts included in the measurement of finance lease liabilities was $15.3 million, $9.7 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
One of the Company’s 2020 acquired companies entered into a sublease agreement in 2017. This agreement is with an unrelated third party to occupy approximately 104,852 square feet of the Company’s office space. We recorded rent expense on a straight-line basis for the lease, net of sublease income. For the years ended December 31, 2021 and 2020 we have the following operating sublease information (in thousands):
Year Ended December 31,
20212020
Fixed sublease expense$9,524 $5,769 
Variable sublease expense1,421 836 
Sublease income(9,421)(5,678)
Variable sublease income(1,407)(836)
Net Loss$117 $91 
Undiscounted cash flow—The tables below reconcile the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded in the consolidated balance sheets (in thousands):
As of December 31, 2021
Operating
Leases		Finance
Leases		Total
202221,683 23,561 45,244 
202315,143 15,163 30,306 
202413,655 6,237 19,892 
202513,648 2,885 16,533 
202612,310 975 13,285 
Thereafter15,365 — 15,365 
Total lease payments91,804 48,821 140,625 
Less: amount representing interest10,914 2,737 13,651 
Present value of future lease payments80,890 46,084 126,974 
Less: current obligations under leases18,392 21,999 40,391 
Non-current lease obligations$62,498 $24,085 $86,583 
In addition, the Company will receive $5.5 million and $0.6 million of sublease income from its real estate leases in 2022 and 2023 respectively.
As of December 31, 2021, we did not have any additional significant lease that had not yet commenced.
Leases LeasesThe Company leases real estate property under operating leases. The Company also leases networking equipment under arrangements with certain providers of IT infrastructure services which were accounted as finance leases or short-term operating leases.
The Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest it would have to pay to borrow on a collateralized basis with an equal lease payment amount, over a similar term, and in a similar economic environment.
Operating Leases—The Company has entered into various non-cancelable operating leases primarily for our office facilities. The most significant leases are related to the Company's corporate headquarters in Palo Alto, California. As of December 31, 2021, the remaining lease terms varied from 2 months to 8.2 years. For certain leases the Company has an option to extend the lease term for periods varying from 2 to 5 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term greater than 12 months, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payments.
Further, the Company leases certain networking equipment, colocation space and office space under lease arrangements with terms 12 months or less, which are classified as short-term leases.
The table below presents the operating lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Operating lease right-of-use assets$70,975$84,336Operating lease right-of-use assets
Current operating lease liabilities$18,392$22,206Operating lease liabilities
Non-current operating lease liabilities$62,498$71,755Operating lease liabilities, non-current
Weighted-average remaining term (years)5.33.7
Weighted-average discount rate5.0%4.7%
The table below presents certain information related to the lease costs for operating leases which are allocated to cost of revenue, sales and marketing, research and development, and general and administrative expenses (in thousands):
Year Ended December 31,
202120202019
Operating lease cost$28,676 $17,372 $3,520 
Short-term lease cost9,683 8,196 3,231 
Variable lease cost7,862 2,147 479 
Total lease cost$46,221 $27,715 $7,230 
Cash paid for amounts included in the measurement of operating lease liabilities was $25.5 million, $23.8 million and $3.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Right-of-use assets acquired under operating leases was $6.1 million , $10.8 million and $7.4 million for the years ended December 31, 2021 , 2020 and 2019, respectively.
Finance Leases—The Company has entered into various non-cancelable finance leases primarily for networking equipment with weighted average remaining lease term of approximately 2.5 years. The Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payments.
The table below presents the finance lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Finance lease right-of-use assets$44,575 $5,067 Property and equipment, net
Current finance lease liabilities$21,999 $2,821 Accrued liabilities
Non-current finance lease liabilities$24,085 $2,340 Other non-current liabilities
Weighted-average remaining term (years)2.50.6
Weighted-average discount rate5.0 %6.0 %
The Company recognized depreciation expenses related to finance lease of networking equipment of $17.8 million, $8.4 million and $5.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognized interest expenses related to finance lease of networking equipment of $1.5 million, $0.3 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Cash paid for amounts included in the measurement of finance lease liabilities was $15.3 million, $9.7 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.
One of the Company’s 2020 acquired companies entered into a sublease agreement in 2017. This agreement is with an unrelated third party to occupy approximately 104,852 square feet of the Company’s office space. We recorded rent expense on a straight-line basis for the lease, net of sublease income. For the years ended December 31, 2021 and 2020 we have the following operating sublease information (in thousands):
Year Ended December 31,
20212020
Fixed sublease expense$9,524 $5,769 
Variable sublease expense1,421 836 
Sublease income(9,421)(5,678)
Variable sublease income(1,407)(836)
Net Loss$117 $91 
Undiscounted cash flow—The tables below reconcile the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded in the consolidated balance sheets (in thousands):
As of December 31, 2021
Operating
Leases		Finance
Leases		Total
202221,683 23,561 45,244 
202315,143 15,163 30,306 
202413,655 6,237 19,892 
202513,648 2,885 16,533 
202612,310 975 13,285 
Thereafter15,365 — 15,365 
Total lease payments91,804 48,821 140,625 
Less: amount representing interest10,914 2,737 13,651 
Present value of future lease payments80,890 46,084 126,974 
Less: current obligations under leases18,392 21,999 40,391 
Non-current lease obligations$62,498 $24,085 $86,583 
In addition, the Company will receive $5.5 million and $0.6 million of sublease income from its real estate leases in 2022 and 2023 respectively.
As of December 31, 2021, we did not have any additional significant lease that had not yet commenced.
v3.22.0.1
Credit Agreement
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Credit Agreement Credit Agreement
On August 15, 2018, the Company entered into a Credit Agreement which provided for senior secured term loans in an aggregate principal amount of $820.0 million (the “Closing Term Loans”) and a revolving credit facility of $50.0 million.
On April 23, 2019, the Credit Agreement was amended to increase the senior secured term loan facility by $400.0 million, on terms identical to those applicable to the Closing Term Loans (together with the Closing Term Loans, the “Initial Term Loans”).
On April 27, 2020, the Credit Agreement was further amended to modify certain negative covenants.
On May 6, 2020, the Credit Agreement was further amended (the “Third Amendment”) to increase the senior secured term loan facility by an additional $300.0 million (the “Third Amendment Term Loans”).
On October 27, 2020, the Credit Agreement was further amended to increase the aggregate principal amount of the revolving credit facility by an additional $540.0 million.
On November 30, 2020, the Company borrowed $150.0 million under the revolving credit facility (the “Revolving Credit Loans”).
The Company is required under the Credit Agreement, as amended, to make equal quarterly repayments of (i) with respect to the Initial Term Loans, $3.1 million, and (ii) with respect to the Third Amendment Term Loans, 0.25% of the aggregate principal amount of the Third Amendment Term Loans made on the effective date of the Third Amendment. The
remaining principal amounts of the Initial Term Loans and the Third Amendment Term Loans are due on August 15, 2025. With respect to the Revolving Credit Loans, the principal amount is due on February 15, 2025.
The Initial Term Loans, the Third Amendment Term Loans and the Revolving Credit Loans bear interest due on a quarterly basis at a rate equal to an applicable margin plus, at the Company’s option, either (a) a base rate equal to the highest of (i) the prime rate then in effect, (ii) the federal funds rate, plus 0.50% and (iii) the LIBOR rate, plus 1.0% (the “base rate”), or (b) an adjusted LIBOR rate (the “LIBOR rate”). The applicable margin with respect to both the Initial Term Loans and the Third Amendment Term Loans is equal to 3.5% in the case of LIBOR rate loans and 2.50% in the case of base rate loans. The applicable margin with respect to the Revolving Credit Loans is equal to 2.50% in the case of LIBOR rate loans and 1.50% in the case of base rate loans. In addition, the applicable margins for the Initial Term Loans, the Third Amendment Term Loans and the Revolving Credit Loans are subject to a reduction of 0.25% upon the closing of an IPO and an additional reduction of 0.25% based on the Company’s consolidated first lien secured debt to consolidated EBITDA ratio. The Company determined that upon issuance, the contingent interest adjustment feature, which reduces their applicable margins upon the closing of an IPO, is an embedded derivative that requires bifurcation and separate accounting as the feature is not clearly and closely related to the host instrument. The Company determined that the value of this embedded derivative was nominal as of the respective issuance dates. The embedded derivative was recorded at fair value each reporting period, with changes in fair value recorded in interest income and other gains in the Company’s consolidated statements of operations. No hedge accounting treatment was applied. For details regarding the fair value measurement of the embedded derivative, see Note 3.
On February 12, 2021, the Company further amended the Credit Agreement (the "Fifth Amendment") to 1) increase the senior secured term loan facility by an aggregate principal amount of $597.8 million (the “Fifth Amendment Term Loans”, and together with the "Initial Term Loans", the “New Initial Term Loans”), on terms identical to those applicable to the existing Initial Term Loans, the proceeds of which was partially used to repay in full the outstanding principal and accrued and unpaid interest of the Third Amendment Term Loans, totaling $298.2 million, in accordance with the pre-existing early redemption option in the Credit Agreement, and 2) increase the aggregate principal amount of the revolving credit facility by an additional $10.0 million, on terms identical to those applicable to the existing revolving credit facility. According to the amended Credit Agreement, the Company is required to make equal quarterly repayments of $4.6 million with respect to the New Initial Term Loans. In connection with this amendment, the Company paid $0.8 million in fees to KKR Capital Markets, who is affiliated with KKR Denali, one of the Company’s principal stockholders.
The Company evaluated the accounting for the Fifth Amendment Term Loans on a creditor-by-creditor basis. For existing creditors who participated in the Fifth Amendment Term Loans, the transaction was accounted for as a debt modification because the present value of the cash flows between the two debt instruments before and after the transaction was less than 10%. For new creditors, the transaction was accounted for as an issuance of new debt. As a result, $2.9 million of the $3.5 million third-party issuance costs related to the modified debt was recorded in other income (expense), net on the Company’s consolidated statements of operations, with the remaining $0.6 million related to the new debt recorded as a reduction to the carrying amount of the Term Loans. In addition, the Company recorded $5.6 million for an embedded derivative related to the contingent interest adjustment feature of the Fifth Amendment Term Loans, which was bifurcated and accounted for separately as the feature is not clearly and closely related to the host instrument. For details regarding the fair value measurement of the embedded derivative, see Note 3. The debt discount, comprising of 1) the deferred third-party issuance costs, 2) the bifurcated embedded derivative and 3) the debt discount of the Initial Term Loans that were modified as part of the amendment, is being amortized to interest expense using the effective interest method over the remaining contractual term of the Term Loans.
The Company accounted for the early repayment of the Third Amendment Term loans pursuant to the Fifth Amendment as a debt extinguishment. As a result, the Company recognized a loss on debt extinguishment of $16.9 million during the three months ended March 31, 2021, which was recorded in interest expense and loss on extinguishment of debt on the Company’s condensed consolidated statements of operations. The loss on debt extinguishment consisted primarily of the unamortized original issue discount and debt issuance cost.
On March 31, 2021, the Company drew down an additional $250.0 million from the Company’s $600.0 million revolving credit facility. A lender under the revolving credit facility is an affiliate of KKR Denali, a principal stockholder of the Company. Following such draw down, the Company had an aggregate amount of $400.0 million outstanding under the revolving credit facility, which was repaid in full with the net proceeds from the IPO in April 2021.
After the effectiveness of the IPO Registration Statement, the applicable margins for both the New Initial Term Loans and the Revolving Credit Loans were reduced by 0.25% on April 16, 2021 in accordance with the pre-existing terms of the Credit Agreement. As a result, the embedded derivative for the contingent interest adjustment feature related to the New Initial Term Loans was settled. The Company remeasured the embedded derivative to its fair value of $17.8 million on the settlement date by recording a gain of $1.1 million in other income (expense), net in the Company’s consolidated statements of operations, and then reclassified it to the carrying amount of the New Initial Term Loans as an additional debt discount. The new unamortized discount balance is subsequently amortized using the new effective interest rate determined on the settlement date of the embedded derivative of 3.9%.
On October 25, 2021, the Company further amended the Credit Agreement (the "Sixth Amendment") to increase the senior secured term loan facility by an aggregate principal amount of $1.50 billion (the “Sixth Amendment Term Loans”, and together with the "New Initial Term Loans", the “Term Loans”). Under the terms of the amended Credit Agreement, the Sixth Amendment Term Loans bear interest at a floating rate equal to, at the Company's option, either (i) an adjusted LIBOR rate for a specified interest period plus an applicable margin of 3.00% or (ii) a base rate plus an applicable margin of 2.00%. The LIBOR rate applicable to the Sixth Amendment Term Loans is subject to a “floor” of 0.50%. The Company is required to repay the Sixth Amendment Term Loans in equal quarterly repayments commencing with the fiscal quarter ending on June 30, 2022, a principal amount equal to 0.25% of the aggregate outstanding principal amount on the effective date of the Sixth Amendment or $3.8 million, with the remaining principal amount of the Sixth Amendment Term Loans due on October 25, 2028. The other terms and conditions of the Sixth Amendment Term Loans are consistent with the term loans outstanding immediately prior to the effectiveness of the Sixth Amendment. In connection with this amendment, the Company paid $1.4 million in fees to KKR Capital Markets, who is affiliated with KKR Denali, one of the Company’s principal stockholders. The Company accounted for the Sixth Amendment Term Loans as an issuance of new debt. Accordingly, the total debt discount and third-party debt issuance costs of $15.7 million was recorded as a reduction to the carrying amount of the Sixth Amendment Term Loans, which is being amortized over its contractual term at an effective interest rate of 3.7%.
The Credit Agreement requires the Company to prepay, subject to certain exceptions, the term loan with:
•100% of net cash proceeds above a threshold amount of certain asset sales, certain debt incurrences and casualty events, subject to, in the case of asset sales, casualty events, and sale leasebacks, (i) step-downs to (x) 50% if the Company’s consolidated first lien secured debt to consolidated EBITDA ratio is less than or equal to 3.50 to 1.00, but greater than 2.50 to 1.00 and (y) 0% if the Company’s consolidated first lien secured debt to consolidated EBITDA ratio is less than or equal to 2.50 to 1.00, and (ii) reinvestment rights and certain other exceptions;
•50% of annual excess cash flow above a threshold amount, subject to (i) a step-down to 25% if the Company’s consolidated first lien secured debt to consolidated EBITDA ratio is less than or equal to 4.00 to 1.00, but greater than 3.50 to 1.00, and (ii) a step-down to 0% if the Company’s first lien net leverage ratio is less than or equal to 3.50 to 1.00; provided that such prepayment is required only in the amount (if any) by which such prepayment exceeds $10 million in such fiscal year. The amount of excess cash flow is subject to certain deductions and exceptions, including a dollar-for-dollar reduction based on the amount of voluntary prepayments of term loans and loans under the revolving credit facility (to the extent accompanied by a permanent commitment reduction); and
•100% of the net cash proceeds of certain other debt incurrences.
The Company is permitted to voluntarily prepay or repay outstanding loans under the Revolving Credit Facility or Term Loans at any time, in whole or in part, subject to prior written notice, minimum amount requirements, and customary “breakage” costs with respect to LIBOR rate loans. Amounts prepaid under the Revolving Credit Facility may subsequently be reborrowed.
The Company’s obligations under the Credit Agreement are secured by substantially all of the assets of the Company and its domestic subsidiary guarantors (other than customarily excluded assets).
The Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of AppLovin and its restricted subsidiaries to, among other things, incur debt, grant liens, undergo certain fundamental business changes, make investments, pay-out dividends to third parties, dispose of assets, and enter into transactions with affiliates, in each case, subject to limitations and exceptions set forth in the Credit Agreement. The Credit Agreement also contains customary events of default that include, among other things, certain payment defaults, cross defaults to other indebtedness, covenant defaults, change of control defaults, judgment defaults, and bankruptcy and insolvency defaults. If an event of default exists, the lenders may require the immediate payment of all obligations under the Credit Agreement and may exercise certain other rights and remedies provided for under the Credit Agreement, the other loan documents and applicable law. As of December 31, 2021, the Company was in compliance with all of the covenants.
The following table presents the amount of interest expense recognized relating to the contractual interest coupon, amortization of the debt discount and issuance costs, and loss on debt extinguishment with respect to the Company's Term Loans, for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
Contractual interest coupon$70,882 $58,810 $65,859 
Amortization of debt discount and issuance costs7,442 7,319 4,754 
Loss on debt extinguishment 16,852 — — 
Total interest expense from Term Loans$95,176 $66,129 $70,613 
The aggregate future maturities of long-term debt as of December 31, 2021 are as follows (in thousands):
2022$25,810 
202333,310
202433,310
20251,736,094
202615,000
Thereafter1,428,750
Total outstanding term loan principal$3,272,274 
Unaccreted discount and debt issuance costs(44,630)
Total debt$3,227,644 
Less: short-term debt25,810
Long-term debt$3,201,834 
v3.22.0.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2021
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Derivative Instruments Derivative Instruments
The Company manages exposure to market risk associated with fluctuating interest rates with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for trading or speculative purposes. On November 14, 2018, the Company entered into an interest rate swap agreement as part of its interest rate risk management strategy in connection with the term loan (See Note 9). The notional amount for the swap was $410.0 million. The swap was a receive-variable (one-month LIBOR) and pay-fixed (2.9065%) interest rate swap, which expired on December 31, 2020, with settlement date commencing on the last calendar day of each month and reset date on first day of each month beginning December 31, 2018.
The Company applied the hedge accounting provisions of the critical terms match hedge, and formally documented at inception all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking the various hedges. The critical terms of the swap and hedged item coincided (notional amount, interest rate reset dates, interest rate payment dates, and underlying index), the hedge was expected to offset changes in expected cash flows due to fluctuations in one-month LIBOR over the term of the hedge. Therefore, the effectiveness of the hedge relationship was assessed each quarter by comparing the current terms of the swap and the debt to assure they continued to coincide and through an evaluation of the continued ability of the counterparty to the swap to honor its obligations under the swap. Had the critical terms no longer matched exactly, hedge effectiveness (both prospective and retrospective) would have to be assessed by evaluating the cumulative dollar-offset ratio for the actual derivative and the hedged item.
Unrealized changes in the fair value of derivatives accounted for as a critical term match hedge were reported in other comprehensive income (loss) and subsequently reclassified to earnings in the same period or periods during which the hedged forecasted transaction affected earnings. For the years ended December 31, 2021, 2020 and 2019, the Company recognized nil, $9.5 million and $2.7 million, respectively, of realized loss related to the hedged transactions that were recorded in interest expense. The interest rate swap contract expired on December 31, 2020 and the settlement value of the interest rate swap liability was reclassified to earnings. The Company had no such interest rate derivative financial instruments during the year ended December 31, 2021.
v3.22.0.1
Convertible Preferred Stock
 12 Months Ended
Dec. 31, 2021
Class of Stock Disclosures [Abstract]  
Convertible Preferred Stock Convertible Preferred Stock
On July 13, 2018, the Company signed an agreement with KKR Denali for a $400.0 million equity investment by KKR Denali. Pursuant to such agreement, on August 15, 2018, the Company issued 109,090,908 shares of Series A Preferred Stock to KKR Denali in exchange for their investment.
Prior to the filing of the IPO Certificate, the Company’s Restated Certificate of Incorporation designated and authorized 109,090,908 shares of Series A Preferred Stock, $0.00003 par value per share, of the Company.
The holders of Series A convertible preferred stock had various rights and preferences as follows:
Voting—Each share of convertible preferred stock had voting rights equal to an equivalent number of shares of common stock into which it was convertible and votes together as one class with the common stock, except as below:
Holders of Series A convertible preferred stock, voting together as a single class on an as-converted basis, were entitled to certain protective provisions which required a majority of holders of preferred stock to approve, among other actions, a liquidation event, an amendment, waiver, or repeal of provisions of the Company’s Restated Certificate of Incorporation or Bylaws in a way that adversely affects the rights, privileges and obligations of the preferred stock, a change to the number of directors of the Company, and a declaration or payment of any dividend.
Holders of Series A convertible preferred stock, voting as a separate class, were entitled to elect two members to the Company’s Board of Directors (the “Board”). Holders of common stock, voting as a separate class, were entitled to elect five members to the Board. Holders of common stock and preferred stock, voting together as a single class on an as converted basis, were entitled to elect all remaining directors.
Dividends—The holders of Series A convertible preferred stock were entitled to receive, out of any funds legally available, dividends on a pari-passu basis to any dividends paid on the common stock, as adjusted for stock splits, stock dividends, combinations, recapitalizations, and similar transactions, when, and if declared by the Board. No dividends have been declared or paid on the Company’s preferred stock.
Liquidation Preference—In the event of any liquidation, dissolution, or winding-up of the Company, the holders of preferred stock were entitled to receive, prior and in preference to any distribution of the assets or funds of the Company to the holders of the common stock, an amount equal to the issuance price per share of $3.67 for Series A convertible preferred stock, as adjusted for stock splits, stock dividends, combinations, recapitalizations, and similar transactions, plus any declared but unpaid dividends (the “Liquidation Preference”). If the Company had insufficient assets to permit payment of the Liquidation Preference in full to all holders of preferred stock, then the assets of the Company would be distributed ratably to the holders of preferred stock in proportion to the Liquidation Preference such holders would otherwise be entitled to receive.
After payment of the Liquidation Preference to the holders of preferred stock, the remaining assets of the Company would be distributed ratably to the holders of common stock. If the holders of preferred stock would have been entitled to a larger distribution had they converted their shares to common stock, then the preferred stock would be deemed to have converted to common stock.
Redemption—Series A convertible preferred stock were not redeemable.
Conversion—Each share of preferred stock was convertible at the option of the holder, at any time after the date of issuance of such share, into shares of Class A common stock as determined by dividing the original purchase price of preferred stock by the conversion price in effect at the time of conversion for such series of preferred stock. The conversion price per share of Series A convertible preferred stock was $3.67. The conversion ratio for convertible preferred stock was one-to-one.
Each share of preferred stock would automatically be converted into shares of common stock at the then-effective conversion rate of such shares upon the earlier of (i) the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale of common stock of the Company to the public not less than $75.0 million or (ii) the consent of holders of at least a majority of the then-outstanding shares of preferred stock, voting together as a single class on an as-converted basis.
Notwithstanding anything to the contrary herein, in connection with the IPO, if (a) the price per share of common stock sold to the public in such IPO as set forth on the cover of the Company’s final prospectus (prior to underwriting discounts and expenses) (the “IPO Price”) would be less than the Conversion Price of the Series A Preferred Stock prior to giving effect to this provision, then the Conversion Price of the Series A Preferred Stock would be adjusted downward to an amount equal to the IPO Price (the “IPO Conversion Price Adjustment”) and the Conversion Price of the Series A preferred stock as so adjusted would be used to determine the number of shares of Class A common stock to be received by the holders of Series A Preferred Stock upon conversion of the Series A preferred stock in connection with the IPO. The IPO Conversion Price Adjustment, if any, would occur as of immediately prior to the effectiveness of the Company’s registration statement for such IPO.
Anti-Dilution Protection—Series A convertible preferred stock had antidilution protection. If the antidilution protection for the preferred stock would be triggered, the conversion price would be subject to a broad-based weighted-average adjustment to reduce dilution.
IPO Conversion
Upon the filing and effectiveness of the IPO Certificate, all shares of Series A convertible preferred stock then outstanding automatically converted into the equivalent number of shares of Class A common stock.
The Company’s IPO Certificate authorizes the issuance of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board. As of December 31, 2021 there were no shares of preferred stock issued and outstanding.
v3.22.0.1
Common Stock
 12 Months Ended
Dec. 31, 2021
Common Stock [Abstract]  
Common Stock Common Stock
Following the effectiveness of the IPO Registration Statement, the Company filed its IPO Certificate. The IPO Certificate authorizes a total of 1,500,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, and 150,000,000 shares of Class C common stock. As of December 31, 2021 the Company had two classes of outstanding common stock: 296,426,738 shares of Class A common stock and 78,662,622 shares of Class B common stock.
The rights of the holders of all classes of stock pursuant to the IPO Certificate are as follows:
The rights of the holders of Class A common stock, Class B common stock, and Class C common stock (referred to together as the “common stock”) are identical, except with respect to voting and conversion.
Voting Rights
Holders of the Class A common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders, holders of the Class B common stock are entitled to 20 votes for each share held on all matters submitted to a vote of stockholders, and holders of the Class C common stock are not entitled to vote on any matter that is submitted to a vote of stockholders, except as otherwise required by law. The holders of the Class A common stock and Class B common stock will vote together as a single class, unless otherwise required by law. Under the IPO Certificate, approval of the holders of at least a majority of the outstanding shares of the Class B common stock voting as a separate class will be required to increase the number of authorized shares of the Class B common stock. In addition, Delaware law could require either holders of the Class A common stock, the Class B common stock, or the Class C common stock to vote separately as a single class in the following circumstances:
•if the Company were to seek to amend the IPO Certificate to increase or decrease the par value of a class of stock, then that class would be required to vote separately to approve the proposed amendment; and
•if the Company were to seek to amend the IPO Certificate in a manner that alters or changes the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment.
Until the date on which the final conversion of all outstanding shares of Class B common stock pursuant to the terms of the IPO Certificate occurs, approval of at least two-thirds of the outstanding shares of the Company’s Class B common stock voting as a separate class will be required to amend or modify any provision of the IPO Certificate inconsistent with, or otherwise alter, any provision of the IPO Certificate to modify the voting, conversion, or other rights, powers, preferences, privileges, or restrictions of the Company’s Class B common stock.
Upon the closing of the IPO, the Class B Stockholders held all of the issued and outstanding shares of the Company’s Class B common stock. The Class B Stockholders have entered into a voting agreement (the “Voting Agreement”) whereby all Class B common stock held by the Class B Stockholders and their respective permitted entities and permitted transferees will be voted as determined by two of Mr. Foroughi, Mr. Chen, and KKR Denali (one of which must be Mr. Foroughi).
Dividend Rights
Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of the Company’s common stock will be entitled to receive dividends out of funds legally available if the Company’s Board, in its discretion, determines to issue dividends and then only at the times and in the amounts that the Company’s Board may determine.
No Preemptive or Similar Rights
The Company’s common stock will not be entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.
Right to Receive Liquidation Distributions
If the Company becomes subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to the Company’s stockholders would be distributable ratably among the holders of the Company’s common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.
Conversion of Class B Common Stock
Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Following the closing of the IPO, shares of Class B common stock will automatically convert into shares of Class A common stock upon sale or transfer except for certain transfers described in the IPO Certificate, including transfers for estate planning, transfers among KKR Denali and its affiliates, or other transfers among the Class B Stockholders. Withdrawal from the Voting Agreement constitutes a transfer.
Each share of Class B common stock will convert automatically into one share of Class A common stock upon the date fixed by the Company’s Board that is no less than 61 days and no more than 180 days following the date on which (i) the Voting Agreement is terminated or (ii) Adam Foroughi is no longer involved with the Company as a member of the Board or as an executive officer.
Conversion of Class C Common Stock
After the conversion or exchange of all outstanding shares of the Company’s Class B common stock into shares of Class A common stock, all outstanding shares of Class C common stock will convert automatically into Class A common stock, on a share-for-share basis, on the date or time specified by the holders of a majority of the outstanding shares of Class A common stock, voting as a separate class.
Warrant—On January 3, 2019, AppLovin entered into a Warrant Transfer Agreement with Applovin Holdings LLC granting the transfer of the common stock warrant issued in connection with prior debt financing to Angel Pride Holdings Limited and Hontai App Fund Limited Partnership in the amount of 26,021,583 shares and 8,794,734 shares of Class A common stock, respectively. Subsequently, Angel Pride Holding Limited and Hontai App Fund Limited Partnership exercised their rights to purchase the Company’s Class A common stock and each paid $868 and $293, respectively.
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Stock-based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
Following the effective date of the IPO Registration Statement, the Company maintains the 2021 Equity Incentive Plan, the 2021 Partner Studio Incentive Plan and the ESPP, all of which were adopted by the Board and approved by its stockholders.
2021 Equity Incentive Plan
The 2021 Equity Incentive Plan (the “2021 Plan”) provides for the grant of restricted stock units ("RSUs"), incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), restricted stock, stock appreciation rights ("SARs"), performance units, and performance shares to the Company’s employees, directors, consultants and other service providers. The total shares of the Company’s Class A common stock that were initially reserved for issuance under the 2021 Plan was 39,000,000, and provides for for an annual increase of shares, equal to the least of (a) 39,000,000 shares, (b) five percent (5%) of the outstanding shares of all classes of the Company’s common stock as of the last day of the immediately preceding fiscal year, or (c) such other amount as the Company’s Board may determine. Immediately prior to the effectiveness of the 2021 Plan, the Company's 2011 Equity Incentive Plan (the "2011 Plan") was terminated. All outstanding awards under the 2011 Plan continue to be governed by their existing terms, and options cancelled under the 2011 Plan are added to the option pool available under the 2021 Plan.
2021 Partner Studio Incentive Plan
The 2021 Partner Studio Incentive Plan (the “2021 Partner Plan”) provides for the grant of RSUs, ISOs, NSOs, SARs, performance units, and performance shares to individuals or entities engaged by the Company or a parent or subsidiary of the Company to render bona fide services to the party engaging such individual or entity. A total of 390,000 shares of the Company’s Class A common stock are reserved for issuance pursuant to the 2021 Partner Plan.
Following the IPO, the Company has only granted RSUs under the 2021 Plan and 2021 Partner Plan. RSU grants included service-based vesting condition that generally approximates 4 years. A summary of RSUs activity is as follows: (in thousands, except per share data):
Number of Restricted Stock UnitsWeighted
Average
Grant Date
Fair Value		Aggregate Intrinsic Value
Balances at December 31, 2020— — — 
Granted7,575,963 $60.18 
Vested(126,234)62.15 
Cancelled(126,325)59.92 
Balances at December 31, 20217,323,404 $60.15 $690,304 
As of December 31, 2021, there was $375.9 million of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of 3.7 years. The fair value as of the respective vesting dates of RSUs that vested during the year ended December 31, 2021 was $11.9 million.
Employee Stock Purchase Plan
The ESPP permits participants to purchase shares of the Company’s Class A common stock through contributions of up to 15% of their eligible compensation.The ESPP provides for consecutive, overlapping 24-month offering periods, during which the contributed amount by the participant will be used to purchase shares of the Company’s Class A common stock at the end of each 6-month purchase period with the purchase price of the shares being 85% of the lower of the fair market value of the Company’s Class A common stock on the first day of an offering period or on the exercise date. A participant may purchase a maximum of 590 shares of the Company’s Class A common stock during a purchase period. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with the Company.
A total of 7,800,000 shares of the Company’s Class A common stock are reserved for issuance under the ESPP. The number of shares of the Company’s Class A common stock that will be available for sale under the ESPP, and provides for an annual increase of shares, equal to the least of: (a) 7,800,000 shares, (b) one percent (1%) of the outstanding shares of all classes of the Company’s common stock as of the last day of the immediately preceding fiscal year, or (c) such other amount as the Company’s board of directors may determine. The initial offering period is from April 15, 2021 through November 19, 2023. During the year ended December 31, 2021, 42,303 shares of Class A common stock have been purchased under the ESPP.
The weighted-average assumptions used to estimate the fair value of shares to be issued under the ESPP are as follows:
Year Ended December 31,
2021
Weighted-average expected term1.25
Expected volatility44 %
Risk-free interest rate0.17 %
Dividend yield0 %
As of December 31, 2021, total unrecognized compensation cost related to the ESPP was $5.6 million, which will be amortized over a period of 0.9 years.
2011 Equity Incentive Plan
The Company’s 2011 Plan provides for the grant of stock options to employees, directors, consultants, and service providers of the Company. Options under the 2011 Plan may be granted for periods of up to 10 years and generally vest over four years. As noted above, immediately prior to the effectiveness of the 2021 Plan, the 2011 Plan was terminated, and no further awards will be granted thereunder. All outstanding awards under the 2011 Plan continue to be governed by their existing terms, and options cancelled under the 2011 Plan are added to the option pool available under the 2021 Plan.
Stock Options—During the years ended December 31, 2021, 2020 and 2019, the Company granted stock options to purchase 263,200, 13,158,430 and 12,199,200 shares of common stock, with a weighted-average grant date stock fair value of $48.14, $15.94 and $1.97 per share, respectively.
The weighted-average assumptions used to estimate the fair value of stock options granted are as follows:
Year Ended December 31,
202120202019
Weighted-average expected term5.215.946.05
Expected volatility43 %39 %43 %
Risk-free interest rate0.48 %0.56 %1.91 %
Dividend yield0 %0 %0 %
The Company’s stock options activity under the 2011 Plan was as follows:
Number of
Options		Weighted
Average
Exercise
Price Per
Share		Weighted
Average
Remaining
Contractual
Term (Years)
Balances at December 31, 202028,889,524 $5.92 8.8
Granted263,200 27.03 
Exercised(8,947,563)5.40 
Forfeited(1,411,457)6.42 
Expired(390,000)7.45 
Balances at December 31, 202118,403,704 $6.39 7.9
Vested and exercisable at December 31, 202112,030,363 $5.87 7.8
Vested and expected to vest at December 31, 202116,696,145 $6.63 8.0
The aggregate intrinsic value of options outstanding as of December 31, 2021 and 2020, was $1.62 billion and $1.83 billion, respectively. As of December 31, 2021 there was approximately $70.1 million of total unrecognized compensation costs related to unvested options granted, which is expected to be recognized over the weighted-average vesting period of 2.3 years. The total intrinsic value of share options exercised during the years ended December 31, 2021, 2020, and 2019 was $622.1 million, $33.8 million and $1.8 million, respectively.
Early Exercise of Stock Options—Subject to the Board’s approval, the Plan allows for the early exercise of options granted. Under the terms of the Plan, option holders, upon early exercise, must sign a restricted stock purchase agreement that gives the Company the right to repurchase any unvested shares, at the original exercise price, in the event the optionees’ employment terminates for any reason. The right to exercise options before they are vested does not change existing vesting schedules in any way and the early exercised options may not be sold or transferred before they are vested. The repurchase right lapses over time as the shares vest at the same rate as the original option vesting
schedule. The cash amounts received in exchange for these early exercised shares are recorded as a liability on the accompanying balance sheets and reclassified into common stock and additional paid-in-capital as the shares vest. The Company’s right to repurchase these shares lapses by 1/4th of the shares on the one-year anniversary of the vesting start date and ratably each month over the next 36-months.
The Company has 486,999 shares and 19,800 shares of Class A common stock subject to repurchase as of December 31, 2021 and 2020, respectively. The liability for the repurchase as of December 31, 2021 and 2020 included in accrued liabilities was $1.4 million and $0.1 million, respectively.
During the years ended December 31, 2021, 2020 and 2019, the Company provided financing to certain employees in the form of promissory notes to early exercise stock options. These promissory notes are partially collateralized by shares and in-substance are nonrecourse. For accounting purposes, exercised options via nonrecourse promissory notes are not substantive and are continued to be treated as options. In February 2021, promissory notes issued to executive officers in the amount of $20.9 million were settled through either share repurchase, in the amount of $17.2 million, or cash payment, in the amount of $3.7 million. In connection with the repurchase of shares, the Company accelerated vesting of 60,968 shares of Class A common stock for one of the Company’s officers. The acceleration of vesting was accounted as an option modification with an immaterial impact to the stock-based compensation expense.
As of December 31, 2021 and 2020, the Company had 2,884,999 and 8,022,499 shares of Class A common stock options, respectively, that were exercised via nonrecourse promissory notes of which 663,856 and 4,136,677 shares, respectively, were unvested and subject to repurchase. The principal balances of nonrecourse promissory notes outstanding amounted to $15.1 million and $40.4 million as of December 31, 2021 and 2020, respectively.
Restricted Stock—Restricted stock awards are classified as equity awards based on the requirements established by the applicable accounting rules for stock-based compensation. The fair value of the restricted stock awards was determined based on the price of the Company’s valuation on the date of grant as approved by the Company’s board of directors.
The Company has historically granted restricted stock awards to certain employees. Restricted stock award activity for the periods presented herein has not been material. As of December 31, 2021 there was $0.3 million of total unrecognized compensation cost related to unvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 0.7 years.
The Company recognized stock-based compensation expense for all equity awards for the periods indicated as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$2,335 $982 $124 
Sales and marketing15,224 10,668 1,922 
Research and development63,344 36,852 5,009 
General and administrative52,274 13,885 3,167 
Total stock-based compensation expense$133,177 $62,387 $10,222 
For the years ended December 31, 2021, 2020 and 2019 total stock-based compensation expense included $1.2 million, $0.9 million and nil associated with awards that may be settled with one of the Company’s subsidiaries, respectively.
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Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the years ended December 31, 2021, 2020 and 2019 (in thousands,except share and per share data):
Year Ended December 31,
202120202019
BASIC EPS
Numerator:
Net income (loss)$35,446 $(125,187)$119,040 
Less:
Income attributable to convertible preferred stock(3,209)— (39,500)
Income attributable to options exercises by promissory notes(387)— (1,088)
Income attributable to unvested early exercised options(95)— (39)
Income attributable to unvested RSA's(52)— (2,037)
Net income (loss) attributable to common stock$31,703 $(125,187)$76,376 
Denominator:
Weighted-average shares used in computing net income (loss) per share: Basic 324,836,076 214,936,545 210,937,147 
Net income (loss) per share attributable to common stock: Basic$0.10 $(0.58)$0.36 
DILUTED EPS
Numerator:
Net income (loss)$35,446 $(125,187)$119,040 
Less:
Income attributable to convertible preferred stock(3,058)— (39,329)
Income attributable to options exercises by promissory notes(369)— (1,083)
Income attributable to unvested early exercised options(91)— (39)
Income attributable to unvested RSA's(49)— (2,028)
Net income (loss) attributable to common stock$31,879 $(125,187)$76,561 
Denominator:
Weighted-average shares used in computing net income (loss) per share: Basic324,836,076 214,936,545 210,937,147 
Weighted-average dilutive stock options, RSUs, and convertible security17,927,556 — 1,428,282 
Weighted-average shares used in computing net income (loss) per share: Diluted 342,763,632 214,936,545 212,365,429 
Net income (loss) per share attributable to common stock: Diluted $0.09 $(0.58)$0.36 
The following table presents the forms of antidilutive potential common shares:
Year Ended Year Ended December 31,
202120202019
Convertible preferred stock— 109,090,908 109,090,908 
Stock options exercised for promissory notes2,884,999 8,022,499 5,760,000 
Early exercised stock options487,000 19,800 11,337 
Unvested RSAs181,737 1,236,771 3,924,414 
Stock options— 20,754,985 7,439,700 
Unvested RSU291,093 — — 
ESPP246,246 — — 
Total antidilutive potential common shares4,091,075 139,124,963 126,226,359 
The table above does not include the convertible security issued in 2020. The sellers converted the convertible security in 2021 following the completion of the Company's IPO.
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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Net income (loss) before income taxes for the years ended December 31, 2021, 2020 and 2019, includes the following components (in thousands):
Year Ended December 31,
202120202019
U.S.
$193,161 $(118,296)$149,797 
Foreign
(146,850)(17,410)(23,563)
Net income (loss) before income tax
$46,311 $(135,706)$126,234 
Provision for (benefit from) income taxes for the years ended December 31, 2021, 2020 and 2019 consist of the following (in thousands)
Year Ended December 31,
202120202019
Current:
Federal$64,585 $20,162 $23,703 
State
10,234 4,087 1,888 
Foreign
1,914 4,027 568 
76,733 28,276 26,159 
Deferred:
Federal(52,162)(29,235)(720)
State
(2,394)(4,800)(99)
Foreign
(11,204)(4,013)(18,146)
(65,760)(38,048)(18,965)
Total provision for (benefit from) income taxes.
$10,973 $(9,772)$7,194 
The reconciliation of federal statutory income tax rate to the effective income tax rate is as follows (in thousands):
Years ended December 31,
202120202019
Tax provision (benefit) at U.S. federal statutory rate$9,725 $(28,498)$26,509 
State income taxes, net of federal benefit1,866 (1,137)1,412 
Foreign income taxed at different rates10,563 8,710 2,887 
Change in foreign deferred tax rate— (6,038)(17,143)
Stock-based compensation(8,807)10,347 1,671 
Foreign-derived intangible income(10,477)(3,518)(8,600)
Research and development credits(6,193)(2,561)(1,025)
Extinguishments of acquisition-related contingent consideration— 12,237 — 
Foreign Income Inclusion(2,622)— — 
Change in valuation allowance15,905 — — 
Other1,013 686 1,483 
Total provision for (benefit from) income taxes$10,973 $(9,772)$7,194 
In August 2019, the Company acquired certain mobile game apps from an entity based in Cyprus. A deferred tax liability was created due to basis differences of assets acquired. In December 2019, pursuant to a year-end restructuring, the Company changed the tax residency of the operations related to the mobile game apps acquired. Accordingly, the deferred tax liability associated with basis differences in Cyprus was reduced by $17.1 million.
The following summarizes the current and deferred tax assets and liabilities (in thousands):
As of December 31,
20212020
Deferred tax assets:
Accrued expenses and reserves$6,374 $4,757 
Stock-based compensation14,651 1,955 
Tax credit carryforwards4,835 2,526 
Net operating loss12,042 3,787 
Identified intangibles— 8,996 
Operating lease liability16,622 20,551 
Other comprehensive income16,251 — 
Foreign tax deduction12,363 — 
Other2,247 (256)
Valuation allowance(18,842)(531)
Total deferred tax assets66,543 41,785 
Deferred tax liabilities:

Depreciation and amortization(5,433)(6,857)
Identified intangibles(6,049)— 
Operating lease right-of-use assets(16,622)(20,345)
Total deferred tax liabilities(28,104)(27,202)
Net deferred tax assets38,439 14,583 
As of December 31, 2021 and 2020, the Company has federal net operating loss carryforwards of $13.7 million and $19.6 million, respectively, to reduce future taxable income. The net operating losses are not subject to expiration. As of December 31, 2021 and 2020, the Company has federal tax credit carryforwards of $0.9 million and $0.9 million, respectively, to offset future tax liability. The credit carryforwards will begin to expire in 2035. As of December 31, 2021, the Company has federal capital loss carryforward of $4.7 million to reduce future capital gains. The capital loss carryforward will expire in 2026.
As of December 31, 2021 and 2020, the Company has California net operating loss carryforwards of $8.8 million and $9.2 million, respectively, to reduce future taxable income. The net operating losses will begin to expire in 2037. As of December 31, 2021 and 2020, the Company has California tax credit carryforwards of $9.5 million and $4.8 million, respectively, to offset future tax liability. The credit carryforwards are not subject to expiration. As of December 31, 2021 and 2020, the Company has Texas tax credit carryforwards of $0.2 million and $0.3 million, respectively, to offset future tax liability. The credit carryforwards will begin to expire in 2040.
The valuation allowance on the Company's net deferred tax assets increased by $18.3 million, $0.5 million and nil during the years ended December 31, 2021, 2020 and 2019, respectively.
In assessing the realizability of the Company’s deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management’s assessment is based on the weight of available evidence, including cumulative losses since inception and expected future losses and as such, management believes it is more likely than not that the deferred tax assets will be realized. As of December 31, 2021 and 2020, the Company maintained a valuation allowance with respect to certain of its deferred tax assets relating primarily to certain state tax credits and operating losses in certain non-U.S. jurisdictions that we believe are not likely to be realized.
Internal Revenue Code (IRC) Section 382 places a limitation on the amount of taxable income that can be offset by net operating loss carryforwards and tax credits after a greater than 50% change in control in ownership; California has similar rules. The Company’s capitalization described herein may have resulted in such a change. Utilization of the net operating loss carryforwards may be subject to annual limitations under IRC Section 382 and similar state provisions. The annual limitation may result in the expiration of the net operating loss carryforwards before utilization.
The Company has not provided U.S. income or foreign withholding taxes on the undistributed earnings of its foreign subsidiaries as of December 31, 2021 and 2020, because it intends to permanently reinvest such earnings outside of the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability will be immaterial, due to the participation exemption put in place in the Tax Act.
Uncertain Tax Positions
The following table summarizes the activity related to the gross unrecognized tax benefits (in thousands):
As of December 31,
202120202019
Balance at beginning of year
$14,401 $6,646 $2,858 
Increases related to prior year positions
5,027 4,681 2,377 
Increases related to current year positions
2,631 3,498 1,581 
Decreases related to lapse of statutes
(172)(424)(170)
Decreases related to settlements
(3,431)— — 
Balance at end of year
$18,456 $14,401 $6,646 

Of the unrecognized tax benefits, $13.6 million and $13.0 million represents the amount that if recognized, would favorably affect the effective income tax rate in 2021 and 2020, respectively. The Company does not expect a significant change to its unrecognized tax benefits or recorded liabilities over the next twelve months. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business.
The Company records interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2021, 2020 and 2019, the Company had approximately $3.6 million, $2.3 million, and $0.7 million of interest and penalties, respectively.
The tax return for years 2017 through 2021 remain open to examination for federal and other major domestic taxing jurisdictions and for years 2016 through 2021 for other major foreign jurisdictions.
v3.22.0.1
Geographic Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Geographic Information Geographic Information
The following table presents the property and equipment, net by geographic area (in thousands):
As of December 31,
20212020
United States$25,681 $27,942 
Germany22,872 11 
Netherlands14,265 — 
All other countries790 634 
Total property and equipment, net
$63,608 $28,587 
For information regarding revenue disaggregated by geography, see Note 2—Summary of Significant Accounting policies, Revenue from Contracts with Customers
v3.22.0.1
Related Party
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Related Party Related Party
KKR Capital Markets, an affiliate of KKR Denali, acted as a joint lead arranger and joint bookrunner for the Credit Agreement. KKR Denali is also one of the Company’s principal stockholders. In 2021, 2020 and 2019, the Company paid $2.3 million, $1.5 million and $2.0 million, respectively, in fees to KKR Capital Markets in connection with the Credit Agreement. See Note 9.
In November 2020 and March 2021, the Company borrowed $150.0 million and $250.0 million under the revolving credit facility, respectively (together, the "Revolving Credit Loans"). A lender of the Revolving Credit Loans is an affiliate of KKR Denali, a principal stockholder of the Company. The Company repaid such Revolving Credit Loans in full with the net proceeds from the IPO in April 2021. See Note 9.
In December 2021, the Company completed a secondary offering of 7,500,000 shares of its Class A common stock, at a price of $83.00 per share, with all shares offered by certain of the Company's stockholders, including KKR Denali. The Company incurred a payable of $5.0 million to KKR Capital Markets in connection with the secondary offering, which was included in accounts payable on the Company's consolidated balance sheet as of December 31, 2021.
In December 2019, the Company purchased 2,475,000 shares and 300,000 shares of the Company’s Class A Common Stock from the Company’s chief executive officer and from the Company’s Board member, respectively. The chief executive officer is also the Company’s principal stockholder. The fair value of the purchased shares was $14.0 million. The purchase of shares was paid through the issuance of two unsecured 5-year promissory notes with the principal
amount of $10.0 million and $1.2 million, respectively. The promissory notes are redeemable upon the earlier of maturity, (ii) immediately prior to an acquisition of the Company as defined in the Company’s 2011 Equity Incentive Plan, or (iii) immediately prior to the Company’s filing an S-1 with the Securities and Exchange Commission. The promissory notes bear interest at a rate of 2% per annum paid annually. Both promissory notes were recorded in other non-current liabilities at the aggregated initial fair value of $9.1 million representing a discount of 19% to its principal amount and resulting in a purchase of the Company’s common stock shares below its fair value. The discount is amortized over a period of five years under the effective interest method with amortization expense included in interest expense. The shares of the Company’s Class A Common Stock purchased in exchange for the issuance of the promissory note were added to the pool of shares available for the grant under the Company’s 2011 Equity Incentive Plan. The Company recorded the difference between fair value of the shares purchased and the fair value of promissory notes as an increase to additional paid-in capital. In December 2021, the Company repaid both promissory notes and recognized a loss on debt extinguishment of $1.4 million based on the difference between the $11.7 million repayment amount and the carrying value of such promissory notes on the settlement date. The interest expense recognized on this note was not material for the years ended December 31, 2021, 2020, and 2019.
The Company published a mobile game app developed by a mobile game developer owned by a member of the Company's Board, under a game assignment and revenue share agreement entered in October 2020. Under such agreement, the Company made payments to the mobile game developer in the amount of $0.7 million during the year ended December 31, 2021. Payments for the year ended December 31, 2020 was not material.
The Company had no other material related party transactions for the years ended December 31, 2021, 2020, and 2019.
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Subsequent Events
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
In January 2022, the Company completed its previously announced acquisition from Twitter, Inc. of the MoPub business for approximately $1.0 billion in cash, pursuant to an agreement by and between the Company, Twitter, Inc. and Twitter International Company dated October 6, 2021. The Company plans to integrate MoPub's customer base and product features into its existing platform. The acquisition will be accounted for as a business combination and, accordingly, the total purchase price will be allocated to the intangible assets acquired based on their respective fair values on the acquisition close date. Due to the timing of the close, as of the date of issuance of these consolidated financial statements, acquisition accounting is incomplete as the Company is still in the process of estimating the initial purchase price allocation. As a result, the Company is unable to provide this information as well as the pro forma financial information of the combined entity, which will be reported on its Form 10-Q for the quarter ended March 31, 2022. The Company incurred transaction costs of approximately $1.6 million included within the general and administrative expenses for the year ended December 31, 2021 in connection with the business combination for legal, accounting and other fees.
In February 2022, the Company entered into a definitive agreement to acquire all of the equity interests of Wurl, Inc. ("Wurl"), a connected TV software platform, for approximately $430.0 million, which is expected to be funded with 55% in cash and 45% in the Company's Class A common stock. The transaction will enable the Company to expand into the Connected TV market. Concurrent 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. Such plan will become effective at the closing of the transaction. The transaction is subject to customary closing conditions and expected to close in the first half of 2022.
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. The Company may also, from time to time, enter into Rule 10b-5 trading plans to facilitate repurchases of its shares. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock, has no expiration date and may be modified, suspended or terminated at any time at the Company's discretion. As of March 11, 2022, the Company repurchased 893,556 shares of our Class A common stock for an aggregate amount of $43.7 million.
In March 2022, the Company committed to invest up to RMB 300.0 million (approximately $47.5 million) as a limited partner in a China-based private equity fund (“the Fund”) that will invest primarily in the equity of non-public media, telecom and technology companies operating mainly in China. Pursuant to the limited partnership agreement, the Fund has an initial term of seven years, which may be extended for two additional years with the applicable approval. This investment is subject to certain restrictions regarding transfers and withdrawals. Distributions from the Fund will be received as the underlying investments are liquidated. As of the date of issuance of these consolidated financial statements, the Company had not funded any of the committed capital contribution.
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Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Principles of Consolidation Principles of Consolidation—The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Consolidated financial statements include accounts and operations of the Company and its subsidiaries in which the Company has a controlling financial interest. In accordance with the provisions of Accounting Standards Codifications ("ASC") 810, the Company consolidates any variable interest entities ("VIE") where it is the primary beneficiary. The Company engages in business relationships with certain entities in the ordinary course of business to develop game Apps. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. We do not consolidate a VIE in which we have a majority ownership interest when we are not considered the primary beneficiary. The Company evaluates its relationships with all VIEs on an ongoing basis. All intercompany transactions and balances have been eliminated upon consolidation.
Use of Estimates Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, the Company evaluates its estimates, including 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 among others. The Company bases its estimates on assumptions, both historical and forward-looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Risk and Uncertainties Risk and Uncertainties—The Company is subject to risks and uncertainties, including, but not limited to, as a result of the warfare in Ukraine and related sanctions against Russia, as well as, the COVID-19 pandemic. As of the issuance date of these consolidated financial statements, the Company’s results of operations have not been materially impacted. However, the future impact of these events remains uncertain as the response to and information related to these events is rapidly evolving. Economies worldwide have been negatively impacted by the COVID-19 pandemic and the events in the Ukraine and Russia are expected to have a further impact on the global economy. A weakened global economy may negatively impact in-app purchasing decisions and consumer buying decisions across the globe generally, which could adversely affect advertiser activity. The full impact of these events on the global economy and the extent to which these events may impact the Company’s business, financial condition, and results of operations in the future remains uncertain. The severity of the impact of the war in Ukraine, Russian sanctions and the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of these events and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms and uncertain demand.
Revenue from Contracts with Customers
Revenue from Contracts with Customers—The Company generates Business and Consumer revenue. Business Revenue includes fees paid by mobile app advertisers that use the Company’s software platform (“Software Platform”), and revenue generated from the sale of digital advertising inventory of the Company’s apps (“Apps”). Consumer Revenue consists of mobile in-app purchases (“IAPs”) made by users within Apps.
Business Revenue
The Software Platform provides the technology to match advertisers and third-party owners of digital advertising inventory (“Publishers”) via auctions at large scale and microsecond-level speeds. The pricing and terms for all mobile advertising arrangements are governed by the Company’s terms and conditions and generally stipulate payment terms of 30 days subsequent to the end of the month. The contract is fully cancellable at any time.
For Business Revenue generated through placement of advertisements on mobile applications owned by Publishers, the Company’s performance obligation is to provide an advertiser with access to the Software Platform which facilitates the advertiser’s purchase of advertising inventory from Publishers. The Company does not control the advertising inventory prior to its transfer to the advertiser, the Company’s customer, because the Company does not have the substantive ability to direct the use of, nor obtain substantially all of the remaining benefits from the advertising inventory. The Company is not primarily responsible for fulfillment and does not have any inventory risk. The Company is an agent as it relates to the sale of third-party advertising inventory and presents revenue on a net basis. The transaction price is the product of either the number of completions of agreed upon actions or advertisements displayed and the contractually agreed upon price per advertising unit with the advertiser less consideration paid or payable to Publishers.
Advertisers purchase Apps advertising inventory either through the Software Platform or through third-party advertising networks (“Ad Networks”). Revenue from the sale of advertising inventory through Ad Networks is recognized net of the amounts retained by Ad Networks as the Company is unable to determine the gross amount paid by the advertisers to Ad Networks.
The Company recognizes mobile advertising revenue when the agreed upon action is completed or when the ad is displayed to users, depending on the agreed upon pricing mechanism with an advertiser or Ad Network. The number of advertisements delivered and completions of agreed upon actions is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period.
Consumer Revenue
IAPs include fees collected from users for the purchase of virtual goods to enhance their gameplay experience. The identified performance obligation is to provide users with the ability to acquire, use, and hold virtual items over the estimated period of time the virtual items are available to the user or until the virtual item is consumed. The Company categorizes its virtual goods as either consumable or durable. Consumable virtual goods represent goods that can be consumed by a specific player action in gameplay; accordingly, the Company recognizes revenue from the sale of consumable virtual goods as the goods are consumed and the Company’s performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the user over an extended period of time; accordingly, the Company recognizes revenue from the sale of durable virtual goods ratably over the period of time the goods are available to the user and the Company’s performance obligation is satisfied, which is generally the estimated average user life (“EAUL”). Payment is required at the time of purchase and the purchase price is a fixed amount. Users make IAPs through the Company’s distribution partners. The transaction price is equal to the gross amount charged to users because the Company is the principal in the transaction. IAPs fees are non-refundable. Such payments are initially recorded to deferred revenue.
The EAUL represents the Company’s best estimate of the expected life of paying users for the applicable game. The EAUL begins when a user makes a first purchase of durable virtual goods and ends when a user is determined to be inactive. The Company determines the EAUL on a game-by-game basis. For a newly launched game that has limited
playing data, the Company determines its EAUL based on the EAUL of a game that has sufficiently similar characteristics. The Company determines the EAUL on a quarterly basis and applies such calculated EAUL to all bookings in the respective quarter. Determining the EAUL is subjective and requires management’s judgment. Future playing patterns may differ from historical playing patterns, and therefore the EAUL may change in the future. The EAULs are generally between six and nine months.
The Company presents taxes collected from customers and remitted to governmental authorities on a net basis.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of the satisfaction of performance obligations. During the years ended December 31, 2021 and 2020, the Company recognized $86.9 million and $8.2 million of revenue that was included in deferred revenue as of December 31, 2020 and 2019, respectively.
Unsatisfied Performance Obligations
All of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.
Cash and Cash Equivalents and Restricted Cash Equivalents Cash and Cash Equivalents—Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds with maturities of 90 days or less from the date of purchase.Restricted Cash Equivalents—The Company classifies cash equivalents that are legally or contractually restricted for withdrawal or usage as restricted cash equivalents. Restricted cash equivalents as of December 31, 2021 consisted of investments in certain money market fund of funds held in an escrow account related to the MoPub acquisition, which was closed in January 2022.
Accounts Receivable, net Accounts Receivable, net—The Company records accounts receivable at the invoiced amount, maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables, and reviews accounts receivable periodically to identify specific customers with known disputes or collectability issues. As of December 31, 2021 and 2020, the allowance for doubtful accounts was not material.
Derivatives Derivatives—The Company accounts for derivative instruments at fair value. Interest rate swaps may qualify as cash flow hedges. Changes in the interest rate swaps that qualify as cash flow hedges are recorded within accumulated other comprehensive income (loss). Amounts recorded within accumulated other comprehensive income (loss) are reclassified to earnings in a manner that matches the earnings impact of the hedged interest expense. The Company’s policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item.
Fair Value of Financial Instruments Fair Value of Financial Instruments—The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly.
Level 3—Unobservable inputs of which there is little or no market data, which require the Company to develop its own assumptions.
Concentration of Credit Risk and Uncertainties
Concentration of Credit Risk and Uncertainties—The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash equivalents and accounts receivable. The Company places its cash deposits with large, reputable financial institutions. As of December 31, 2021 and 2020, the Company maintained cash balances in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits. Cash equivalents consist of money market funds that are composed of U.S. Treasury and U.S. Government securities.
The Company’s accounts receivable balance is derived from both domestic and international sales. The Company reviews its exposure to accounts receivable credit risk and generally requires no collateral for its accounts receivable.
The Company uses various distribution partners to collect and remit payments from users of Apps for virtual goods. As of December 31, 2021, two distribution partners accounted for 10% of the accounts receivable, net. As of December 31, 2020, two distribution partners accounted for 20% and 13% of the accounts receivable, net.
No individual customer accounted for 10% or more of the Company’s accounts receivable or revenue during the years ended December 31, 2021, 2020 and 2019.
Property and Equipment, net
Property and Equipment, net—Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is as follows:
Useful Life
Computer equipment
3-5 years
Software and licenses
3 years
Furniture and fixtures
3-5 years
Leasehold improvements
Over the shorter of useful life (up to 10 years) or lease term
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. Maintenance and repairs are charged to operations as incurred.
Leases
Leases—Leases consist of real estate property, network and other equipment. The Company determines if an arrangement is or contains a lease at inception. Operating and finance lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of the fixed payments under the arrangement, less any lease incentives. The Company generally use an incremental borrowing rate estimated based on the information available at the lease commencement date to determine the present value of lease payments, unless the implicit rate is readily determinable. Operating lease costs are recognized on a straight-line basis over the lease terms. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease terms.
The Company accounts for lease and non-lease components as a single lease component of contracts for real estate property leases and does not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less. Generally, the lease term is based on non-cancelable lease term when determining the lease assets and liabilities. The lease terms may include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of real estate taxes, common area maintenance, and insurance.
Deferred Offering Costs Deferred Offering Costs—Deferred offering costs, which consist primarily of accounting, legal and other fees directly attributable to the Company’s initial public offering (“IPO”), are capitalized in other assets on the Company’s consolidated balance sheets. Upon the completion of an IPO, the deferred offering costs are presented in stockholders’ equity as a reduction of the IPO proceeds. As of December 31, 2021 and 2020, deferred offering costs included in other assets on the Company’s consolidated balance sheets were nil and $3.6 million, respectively.
Segment Reporting Segment Reporting—The Company’s chief operating decision-maker is the Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. There are no segment managers who are held accountable by the chief operating decision-maker, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has a single reportable and operating segment structure.
Asset Acquisitions and Business Combinations
Asset Acquisitions and Business Combinations—The Company performs an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test suggests that the set of assets and activities is a business, the Company then performs a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, the Company accounts for the transaction as a business combination.
For transactions accounted for as business combinations, the Company allocates the fair value of acquisition consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair value. Acquisition consideration includes the fair value of any promised contingent consideration. The excess of the fair value of acquisition consideration over the fair value of identifiable assets acquired and liabilities assumed is recorded as goodwill. Contingent consideration is remeasured to its fair value each reporting period with changes in the fair value of contingent consideration recorded in general and administrative expenses. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates and assumptions in valuing certain identifiable intangible assets include, but are not limited to, forecasted revenue and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Acquisition-related costs are expensed as incurred.
For transactions accounted for as asset acquisitions, the cost, including certain transaction costs, is allocated to the assets acquired on the basis of relative fair values. The Company generally includes contingent consideration in the cost of the assets acquired only when the uncertainty is resolved. The Company recognizes contingent consideration adjustments to the cost of the acquired assets prospectively using the straight-line method over the remaining useful life of the assets. No goodwill is recognized in asset acquisitions.
Services and Development Agreements Services and Development Agreements—The Company enters into strategic agreements with mobile gaming studios (“Partner Studios”). The Company has historically allowed these Partner Studios to continue their operations with a significant degree of autonomy. In some cases, the Company bought Apps from Partner Studios and entered into service and development agreements whereby Partner Studios provide support in improving existing Apps and developing new Apps. The substantial majority of payments associated with service agreements for existing Apps are expensed to research and development when the services are rendered as the payments primarily relate to developing enhancements for the Apps. Payments for new Apps associated with development agreements are generally made in connection with the development of a particular App, and therefore, the Company is subject to development risk prior to the release of the App. Accordingly, payments that are due prior to completion of an App are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of an App are generally capitalized and expensed as cost of revenue. See Note 6, “Acquisitions” for additional information.
Software Development Costs Software Development Costs—The Company incurs development costs related to internal-use software and the development of Apps. The Company reviews software development costs on a quarterly basis to determine if the costs qualify for capitalization. The Company typically follows an agile and iterative development process. As a result, the preliminary project stage remains ongoing until just prior to launch, at which time final feature selection occurs. As such, software development costs do not meet the criteria for capitalization and are expensed as incurred to research and development expenses. The software development costs the Company capitalized during the year ended December 31, 2021 were not material. The Company did not capitalize any software development costs during the years ended December 31, 2020 and December 31, 2019.
Goodwill Goodwill—Goodwill is allocated to reporting units and tested for impairment on an annual basis during the fourth quarter, or more frequently if the Company believes indicators of impairment exist. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of goodwill or a significant decrease in expected cash flows. When conducting quantitative annual goodwill impairment assessments, the Company compares the fair value of its reporting units to their carrying value. If the carrying value of a reporting unit exceeds its fair value, then the Company records a goodwill impairment. The lesser of (i) the entire amount by which the carrying value of a reporting unit exceeds its fair value or (ii) the carrying value of goodwill allocated to such reporting unit is recorded as an impairment to goodwill. As of December 31, 2021, 2020 and 2019, no impairment of goodwill has been identified.
Intangible Assets Intangible Assets—This consists of identifiable intangible assets, primarily Apps, user base, developed technology and intellectual property licenses resulting from acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. The Company’s estimates of useful lives of intangible assets are based on cash flow forecasts which incorporate various assumptions, including forecasted user acquisition costs, user attrition rates and level of user engagement.Intangible assets also include costs of intellectual property that the Company licenses from third parties for use of their content in the Company’s game. The licensing agreements include license payments, which are due over the terms of the agreements. The Company recognizes these license payments as a license asset and a license obligation at the fair value on the contract date, based on a discounted cash flow model. The amortization of the licensed asset is recorded in cost of revenue on a straight-line basis over the remaining license terms. The classification of the license obligations between current and long-term is based on the expected timing of the payments to the licensor.
Impairment of Long-Lived Assets Impairment of Long-Lived Assets—The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, the Company assesses the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense equal to the amount required to reduce the carrying value of the assets to the estimated fair value is recorded as an impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and internal forecasts. For example, if future operating results do not meet current forecasts, the Company may be required to record future impairment charges for acquired intangible assets. Additional factors which significantly affect future cash flows related to long-lived assets include, but are not limited to, forecasted user acquisition costs, user attrition rates and level of user engagement. Significant changes in these factors may require the Company to reassess recoverability of long-lived assets and record impairment. Impairment charges could materially decrease future net income and result in lower asset values on the Company’s consolidated balance sheet. There were no material impairment charges recorded for the years ended December 31, 2021, 2020 and 2019.
Cost of Revenue Cost of Revenue—Cost of revenue consists primarily of third-party payment processing fees related to Consumer Revenue and paid to the Company’s distribution partners, amortization of intangible assets related to acquired technology and Apps, and expenses associated with operating network infrastructure which include bandwidth, energy, and other equipment costs related to the co-located data centers and costs for third-party cloud service providers.
Sales and Marketing Sales and Marketing—Sales and marketing expenses consist primarily of user acquisition costs, other advertising expenses, sales incentives, and amortization of acquired separately-identifiable user- related intangible assets. Related costs associated with these functions such as, marketing programs, travel, customer service costs as well as allocated facilities and information technology costs are also included in sales and marketing expenses. Costs for advertising are expensed as incurred. Advertising costs, which consist primarily of user acquisition costs, totaled $983.7 million, $550.9 million, and $436.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.
Research and Development Research and Development—Research and development expenses include new product development costs such as salaries and employee benefits, consulting costs, stock-based compensation, regulatory compliance costs as well as allocated facilities and information technology costs.
General and Administrative General and Administrative—General and administrative expenses include costs associated with the Company’s finance, accounting, legal, human resources, and administrative personnel. Related costs associated with these functions, such as attorney and accounting fees, recruiting services, administrative services, insurance, travel, as well as allocated facilities and information technology costs are also included in general and administrative expenses.
Stock-Based Compensation Stock-Based Compensation—The Company accounts for stock-based compensation based on the fair value of awards as of the grant date. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period and accounts for forfeitures as they occur.

    Prior to IPO, the fair value of employee stock options are estimated using the Black-Scholes option-pricing model, which requires use of various assumptions including the expected term, the expected stock price volatility, and the risk- free interest rate. The Company estimates the expected term using the simplified method which is based on the mid-point between the weighted-average time to vesting and the contractual maturity. The Company estimates the volatility of its common stock on the date of grant based on the weighted average historical stock price volatility of comparable publicly-traded companies. The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options. Following the IPO, the Company has granted RSUs for which the fair value is established based on the closing price of the Company's publicly traded Class A common stock on the date of grant.The Company recognizes stock-based compensation expense related to shares issued pursuant to the Employee Stock Purchase Plan ("ESPP") on a straight-line basis over the offering period, which is generally 24 months. The Company estimates the fair value of shares to be issued under the ESPP using the Black-Scholes option-pricing model.

    Stock-based compensation expense also includes liability classified options to employees that may be settled in the stock of one of the Company’s subsidiaries.
Income Taxes
Income Taxes—The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, an adjustment to the deferred tax asset valuation allowance would be made to reduce the provision for income taxes.
The Company records uncertain tax positions on the basis of a two-step process in which determinations are made (1) whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (2) for those tax positions that meet the more- likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with a tax authority.
The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheets.
Foreign Currency Transactions Foreign Currency Transactions—Generally, the functional currency of our international subsidiaries is the U.S. dollar. In cases where the functional currency is not the U.S. dollar, the Company translates the financial statements of these subsidiaries to U.S. dollars using the exchange rate at the prevailing consolidated balance sheet date for assets and liabilities, and average exchange rates during the period for revenue and costs and expenses. The Company records translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. The Company reflects foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income (expense), net.
Comprehensive Income (Loss) Comprehensive Income (Loss)—Comprehensive income (loss) is composed of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of gains and losses on cash flow hedges and foreign currency translation adjustments.
Net Income (Loss) Per Share Attributable to Common Stockholders Net Income (Loss) Per Share Attributable to Common Stockholders—Basic and diluted net income (loss) per share attributable to common stockholders is presented under the two-class method required for participating securities. The Company considers its convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested stock options and unvested restricted stock awards to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested common stock options and unvested restricted stock awards as the holders of these instruments do not have a contractual obligation to share in the Company’s losses. Net income is attributed to common stockholders and participating securities based on their participation rights. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options.
Noncontrolling Interests and Redeemable Noncontrolling Interests Noncontrolling Interests and Redeemable Noncontrolling Interests—For less-than-wholly-owned consolidated subsidiaries, noncontrolling interest is the portion of equity not attributable, directly or indirectly, to AppLovin. The Company evaluates whether noncontrolling interests possess any redemption features outside of our control. If such features exist, the noncontrolling interests are presented outside of permanent equity on the consolidated balance sheets within redeemable noncontrolling interest. The Company report revenues, expenses and net income (loss) from less-than-wholly-owned consolidated subsidiaries at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests; the income or loss attributable to the noncontrolling interest holders is reflected in net income or loss attributable to noncontrolling interest on the consolidated statements of operation. Redeemable noncontrolling interests are adjusted to the greater of their fair value or carrying value as of each balance sheet date.
Recent Accounting Pronouncements (Issued and Adopted) Recent Accounting Pronouncements (Issued and Not Yet Adopted)—In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The standard eliminates beneficial conversion feature and cash conversion models resulting in more convertible instruments being accounted for as a single unit; and simplifies
classification of debt on the balance sheet and earnings per share calculation. These changes will become effective for the Company on January 1, 2022. The Company is currently evaluating the potential impact of these changes.
In October 2021, the FASB issued ASU 2021-08, Business Combinations—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The amendments improve comparability by specifying for all acquired revenue contracts regardless of their timing of payment (i) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (ii) how to measure those contract assets and contract liabilities. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. These changes will become effective for the Company on January 1, 2023. The Company is currently evaluating the potential impact of these changes.
Recent Accounting Pronouncements (Issued and Adopted)—In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes. The ASU impacts various topic areas within ASC 740, including accounting for taxes under hybrid tax regimes, accounting for increases in goodwill, allocation of tax amounts to separate company financial statements within a group that files a consolidated tax return, intra period tax allocation, interim period accounting, and accounting for ownership changes in investments, among other minor codification improvements. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption.
In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging. This ASU clarifies the interaction among the accounting standards for equity securities, equity method investments and certain derivatives. The Company adopted this ASU on January 1, 2021 with no material financial statement impact upon adoption.
v3.22.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Revenue Disaggregated by Type
The following table present revenue disaggregated by type (in thousands):
Year Ended
December 31,
202120202019
Business Revenue—Software Platform$673,952 207,285 $198,305 
Business Revenue—Apps660,557 503,867 397,643 
Total Business Revenue1,334,509 711,152 595,948 
Consumer Revenue1,458,595 739,934 398,156 
Total Revenue$2,793,104 $1,451,086 $994,104 
Summary of Revenue Disaggregated by Geography
Revenue disaggregated by geography, based on user location, consists of the following (in thousands):
Year Ended
December 31,
202120202019
United States$1,687,080 $895,987 $622,051 
Rest of the World1,106,024 555,099 372,053 
Total Revenue$2,793,104 $1,451,086 $994,104 
Schedule of Estimated Useful Life of Property and Equipment Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is as follows:
Useful Life
Computer equipment
3-5 years
Software and licenses
3 years
Furniture and fixtures
3-5 years
Leasehold improvements
Over the shorter of useful life (up to 10 years) or lease term
Property and equipment, net consists of the following (in thousands):
December 31,
20212020
Computer equipment$77,730 $33,977 
Leasehold improvements18,640 18,176 
Furniture and fixtures3,686 2,824 
Software and licenses3,211 3,191 
Total property and equipment103,267 58,168 
Less: accumulated depreciation(39,659)(29,581)
Total property and equipment, net$63,608 $28,587 
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Summary of Financial Instruments that were Measured at Fair Value by Level within the Fair Value Hierarchy on a Recurring Basis
The following table sets forth the Company’s financial instruments that were measured at fair value by level within the fair value hierarchy on a recurring basis as of the dates indicated (in thousands):
As of December 31, 2021
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Assets:
Unrestricted Balances
Money market fundsCash and cash equivalents$1,070,979 $1,070,979 $— $— 
Marketable equity securitiesPrepaid expenses and other current assets$2,532 $2,532 $— $— 
Restricted Balances
Money market fundsRestricted cash equivalents $1,050,000 $1,050,000 $— $— 
Total financial assets$2,123,511 $2,123,511 $— $— 

As of December 31, 2020
Balance Sheet LocationTotalLevel 1Level 2Level 3
Financial Asset:
Money market fundsCash and cash equivalents$6,413 $6,413 $— $— 
Embedded derivativeLong-term debt$5,680 $— $— $5,680 
Total financial assets$12,093 $6,413 $— $5,680 
Financial Liability:
Convertible securityDeferred acquisition costs, current$46,500 $— $— $46,500 
Summary of Reconciliation of the Company's Financial Asset and Liability Measured at Fair Value
The following table presents a reconciliation of the Company’s financial asset and liability measured at fair value as of December 31, 2021 using significant unobservable inputs (Level 3), and the change in fair value (in thousands):
Embedded
Derivative		Convertible
Security
Balance as of December 31, 2019$— $— 
Balance as of Initial fair value recognition— 45,000 
Change in fair value recognized in earnings5,680 1,500 
Balance as of December 31, 2020$5,680 $46,500 
Addition related to the issuance of term loans in February 20215,630 — 
Extinguishment of term loans in February 2021(1,130)— 
Change in fair value recognized in earnings7,640 3,500 
Settlement(17,820)— 
Transfers— (50,000)
Balance as of December 31, 2021$— $— 
v3.22.0.1
Supplemental Financial Statement Information (Tables)
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Property and Equipment, Net Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is as follows:
Useful Life
Computer equipment
3-5 years
Software and licenses
3 years
Furniture and fixtures
3-5 years
Leasehold improvements
Over the shorter of useful life (up to 10 years) or lease term
Property and equipment, net consists of the following (in thousands):
December 31,
20212020
Computer equipment$77,730 $33,977 
Leasehold improvements18,640 18,176 
Furniture and fixtures3,686 2,824 
Software and licenses3,211 3,191 
Total property and equipment103,267 58,168 
Less: accumulated depreciation(39,659)(29,581)
Total property and equipment, net$63,608 $28,587 
Schedule of Accrued Liabilities
Accrued liabilities consists of the following (in thousands):
December 31,
20212020
Tax accruals and withholdings$67,159 $40,127 
Compensation and related liabilities32,862 39,076 
Finance lease liabilities21,999 2,821 
Accrued expenses and other11,750 13,033 
Total accrued liabilities$133,770 $95,057 
v3.22.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Purchase Commitments Future minimum payments under these non-cancelable purchase commitments were as follows (in thousands):
2022$15,465
202358,483
202469,140
202586,270
202633,094
Total non-cancelable purchase commitments
$262,452 
v3.22.0.1
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary allocation of the purchase consideration to the acquisition-date fair value of the assets acquired and liabilities assumed (in thousands):
Provisional Amounts at December 31, 2021
Cash and cash equivalents$12,155 
Accounts receivable and other current assets21,840 
Intangible assets
Customer Relationships—estimated useful life of 12 years
155,000 
Developed Technology—estimated useful life of 6 years
77,000 
Tradename—estimated useful life of 5 years
8,000 
Goodwill761,747 
Operating lease right-of-use assets8,130 
Property and equipment, net1,897 
Finance lease right-of-use assets43,156 
Other assets16,791 
Accounts payable, accrued liabilities and other current liabilities(15,540)
Deferred revenue(5,600)
Operating lease liabilities(8,130)
Finance lease liabilities(43,156)
Deferred income tax liability(65,473)
Total purchase consideration$967,817 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$1,043 
Accounts receivable and other current assets
1,457 
Intangible assets
Apps—estimated useful life of 5 years
17,040 
Tradename—estimated useful life of 5 years
260 
Developed Technology—estimated useful life of 2 years
590 
Property, equipment and other tangible assets
369 
Goodwill
9,805 
Accounts payable, accrued liabilities and other liabilities
(4,935)
Total purchase consideration
$25,629 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$2,787 
Accounts receivable, net
1,850 
Intangible Assets
Apps—estimated useful life of 5 years
44,000 
Tradename—estimated useful life of 5 years
900 
Goodwill
20,198 
Other tangible assets
131 
Accounts payable
(2,492)
Other liabilities
(11,142)
Total valuation
56,232 
Redeemable noncontrolling interest
(2,556)
Total purchase consideration
$53,676 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash
$37,767 
Accounts receivable and other current assets
27,284 
Intangible assets
Tradename—estimated useful life of 10 years
13,000 
Apps—estimated useful life of 3—5 years
272,000 
IP license—useful life of 2 years
28,551 
Goodwill
82,353 
Right-of-use assets under operating leases
125,639 
Property, equipment and other tangible assets
42,312 
Accounts payable, accrued liabilities and other liabilities
(81,591)
Deferred revenue
(43,200)
License obligations
(35,685)
Operating lease liabilities
(139,875)
Total purchase consideration
$328,555 
Supplemental Pro Forma Information
The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Machine Zone and Adjust for each of the periods presented as if Adjust had been acquired as of January 1, 2020 and Machine Zone had been acquired as of January 1, 2019 (in thousands):
Year Ended December 31,
202120202019
Revenue
$2,829,060 $1,625,476 $1,332,476 
Net income (loss)
36,614 (179,415)(105,353)
The unaudited supplemental pro forma information above include the following adjustments to net income (loss) in the appropriate pro forma periods (in thousands):
Year Ended December 31,
202120202019
An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results$(7,325)$(48,006)$(61,969)
A net increase (decrease) in revenue related to fair value adjustment$1,901 $54,126 $(61,928)
A decrease (increase) in expenses related to transaction expenses$14,115 $(2,327)$— 
An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions$(2,640)$93,432 $147,943 
A (decrease) in other income - liability classified warrants$— $(1,730)$(9,040)
An (increase) in tax provision$(1,381)$(21,906)$(3,305)
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill Activity
The following table presents goodwill activity (in thousands):
December 31, 2019$137,121 
Goodwill acquired112,356 
Foreign currency translation296 
December 31, 2020$249,773 
Goodwill acquired762,553 
Foreign currency translation(45,899)
December 31, 2021$966,427 
Summary of Intangible Assets Acquired Net
Weighted-
Average
Remaining
Useful Life
(Years)		As of December 31, 2021As of December 31, 2020
Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Value		Accumulated
Amortization		Net Book
Value
Long-lived intangible assets:
Apps5.0$1,939,180 $(529,012)$1,410,168 $1,222,417 $(232,832)$989,585 
Customer Relationships11.3145,870 (8,442)137,428 — — — 
User base4.368,817 (27,369)41,448 68,817 (17,617)51,200 
License asset1.525,640 — 25,640 28,551 (10,918)17,633 
Developed technology5.287,851 (21,435)66,416 14,946 (8,489)6,457 
Other5.634,895 (6,648)28,247 23,321 (1,864)21,457 
Total long-lived intangible assets2,302,253 (592,906)1,709,347 1,358,052 (271,720)1,086,332 
Short-lived intangible assets:
Apps0.440,348 (38,724)1,624 29,869 (25,599)4,270 
Total intangible assets$2,342,601 $(631,630)$1,710,971 $1,387,921 $(297,319)$1,090,602 
Summary of Finite-Lived Intangible Assets, Amortization Expense
The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$373,726 $228,339 $74,787 
Sales and marketing22,661 11,587 7,641 
Total$396,387 $239,926 $82,428 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
As of December 31, 2021, the expected future amortization expense related to acquired intangible assets is estimated as follows (in thousands):
2022$339,254 
2023329,084 
2024320,537 
2025320,537 
2026313,223 
Thereafter88,336 
Total$1,710,971 
v3.22.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Lessee Disclosure [Abstract]  
Summary of Operating Lease Assets and Liabilities
The table below presents the operating lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Operating lease right-of-use assets$70,975$84,336Operating lease right-of-use assets
Current operating lease liabilities$18,392$22,206Operating lease liabilities
Non-current operating lease liabilities$62,498$71,755Operating lease liabilities, non-current
Weighted-average remaining term (years)5.33.7
Weighted-average discount rate5.0%4.7%
Summary of Lease, Cost
The table below presents certain information related to the lease costs for operating leases which are allocated to cost of revenue, sales and marketing, research and development, and general and administrative expenses (in thousands):
Year Ended December 31,
202120202019
Operating lease cost$28,676 $17,372 $3,520 
Short-term lease cost9,683 8,196 3,231 
Variable lease cost7,862 2,147 479 
Total lease cost$46,221 $27,715 $7,230 
Summary of Finance Lease Asstes and Liabilites
The table below presents the finance lease-related assets and liabilities (in thousands):
Year Ended December 31,
20212020Balance Sheet Classification
Finance lease right-of-use assets$44,575 $5,067 Property and equipment, net
Current finance lease liabilities$21,999 $2,821 Accrued liabilities
Non-current finance lease liabilities$24,085 $2,340 Other non-current liabilities
Weighted-average remaining term (years)2.50.6
Weighted-average discount rate5.0 %6.0 %
Summary of Operating Sublease For the years ended December 31, 2021 and 2020 we have the following operating sublease information (in thousands):
Year Ended December 31,
20212020
Fixed sublease expense$9,524 $5,769 
Variable sublease expense1,421 836 
Sublease income(9,421)(5,678)
Variable sublease income(1,407)(836)
Net Loss$117 $91 
Summary of Lease Liability Maturity
Undiscounted cash flow—The tables below reconcile the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded in the consolidated balance sheets (in thousands):
As of December 31, 2021
Operating
Leases		Finance
Leases		Total
202221,683 23,561 45,244 
202315,143 15,163 30,306 
202413,655 6,237 19,892 
202513,648 2,885 16,533 
202612,310 975 13,285 
Thereafter15,365 — 15,365 
Total lease payments91,804 48,821 140,625 
Less: amount representing interest10,914 2,737 13,651 
Present value of future lease payments80,890 46,084 126,974 
Less: current obligations under leases18,392 21,999 40,391 
Non-current lease obligations$62,498 $24,085 $86,583 
v3.22.0.1
Credit Agreement (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following table presents the amount of interest expense recognized relating to the contractual interest coupon, amortization of the debt discount and issuance costs, and loss on debt extinguishment with respect to the Company's Term Loans, for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
Contractual interest coupon$70,882 $58,810 $65,859 
Amortization of debt discount and issuance costs7,442 7,319 4,754 
Loss on debt extinguishment 16,852 — — 
Total interest expense from Term Loans$95,176 $66,129 $70,613 
Summary of Future Maturities of Long-Term Debt
The aggregate future maturities of long-term debt as of December 31, 2021 are as follows (in thousands):
2022$25,810 
202333,310
202433,310
20251,736,094
202615,000
Thereafter1,428,750
Total outstanding term loan principal$3,272,274 
Unaccreted discount and debt issuance costs(44,630)
Total debt$3,227,644 
Less: short-term debt25,810
Long-term debt$3,201,834 
v3.22.0.1
Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Summary of Outstanding Restricted Stock Awards Activity A summary of RSUs activity is as follows: (in thousands, except per share data):
Number of Restricted Stock UnitsWeighted
Average
Grant Date
Fair Value		Aggregate Intrinsic Value
Balances at December 31, 2020— — — 
Granted7,575,963 $60.18 
Vested(126,234)62.15 
Cancelled(126,325)59.92 
Balances at December 31, 20217,323,404 $60.15 $690,304 
Summary of Weighted Average Assumptions Used The weighted-average assumptions used to estimate the fair value of shares to be issued under the ESPP are as follows:
Year Ended December 31,
2021
Weighted-average expected term1.25
Expected volatility44 %
Risk-free interest rate0.17 %
Dividend yield0 %
The weighted-average assumptions used to estimate the fair value of stock options granted are as follows:
Year Ended December 31,
202120202019
Weighted-average expected term5.215.946.05
Expected volatility43 %39 %43 %
Risk-free interest rate0.48 %0.56 %1.91 %
Dividend yield0 %0 %0 %
Summary of Stock Options Activity Under the Plan
The Company’s stock options activity under the 2011 Plan was as follows:
Number of
Options		Weighted
Average
Exercise
Price Per
Share		Weighted
Average
Remaining
Contractual
Term (Years)
Balances at December 31, 202028,889,524 $5.92 8.8
Granted263,200 27.03 
Exercised(8,947,563)5.40 
Forfeited(1,411,457)6.42 
Expired(390,000)7.45 
Balances at December 31, 202118,403,704 $6.39 7.9
Vested and exercisable at December 31, 202112,030,363 $5.87 7.8
Vested and expected to vest at December 31, 202116,696,145 $6.63 8.0
Summary of Stock-based Payment Arrangement Expenses
The Company recognized stock-based compensation expense for all equity awards for the periods indicated as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$2,335 $982 $124 
Sales and marketing15,224 10,668 1,922 
Research and development63,344 36,852 5,009 
General and administrative52,274 13,885 3,167 
Total stock-based compensation expense$133,177 $62,387 $10,222 
v3.22.0.1
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Summary of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the years ended December 31, 2021, 2020 and 2019 (in thousands,except share and per share data):
Year Ended December 31,
202120202019
BASIC EPS
Numerator:
Net income (loss)$35,446 $(125,187)$119,040 
Less:
Income attributable to convertible preferred stock(3,209)— (39,500)
Income attributable to options exercises by promissory notes(387)— (1,088)
Income attributable to unvested early exercised options(95)— (39)
Income attributable to unvested RSA's(52)— (2,037)
Net income (loss) attributable to common stock$31,703 $(125,187)$76,376 
Denominator:
Weighted-average shares used in computing net income (loss) per share: Basic 324,836,076 214,936,545 210,937,147 
Net income (loss) per share attributable to common stock: Basic$0.10 $(0.58)$0.36 
DILUTED EPS
Numerator:
Net income (loss)$35,446 $(125,187)$119,040 
Less:
Income attributable to convertible preferred stock(3,058)— (39,329)
Income attributable to options exercises by promissory notes(369)— (1,083)
Income attributable to unvested early exercised options(91)— (39)
Income attributable to unvested RSA's(49)— (2,028)
Net income (loss) attributable to common stock$31,879 $(125,187)$76,561 
Denominator:
Weighted-average shares used in computing net income (loss) per share: Basic324,836,076 214,936,545 210,937,147 
Weighted-average dilutive stock options, RSUs, and convertible security17,927,556 — 1,428,282 
Weighted-average shares used in computing net income (loss) per share: Diluted 342,763,632 214,936,545 212,365,429 
Net income (loss) per share attributable to common stock: Diluted $0.09 $(0.58)$0.36 
Summary of Antidilutive Potential Common Shares
The following table presents the forms of antidilutive potential common shares:
Year Ended Year Ended December 31,
202120202019
Convertible preferred stock— 109,090,908 109,090,908 
Stock options exercised for promissory notes2,884,999 8,022,499 5,760,000 
Early exercised stock options487,000 19,800 11,337 
Unvested RSAs181,737 1,236,771 3,924,414 
Stock options— 20,754,985 7,439,700 
Unvested RSU291,093 — — 
ESPP246,246 — — 
Total antidilutive potential common shares4,091,075 139,124,963 126,226,359 
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of Net Income (Loss) Before Income Taxes
Net income (loss) before income taxes for the years ended December 31, 2021, 2020 and 2019, includes the following components (in thousands):
Year Ended December 31,
202120202019
U.S.
$193,161 $(118,296)$149,797 
Foreign
(146,850)(17,410)(23,563)
Net income (loss) before income tax
$46,311 $(135,706)$126,234 
Summary of Provision for Benefit from Income Taxes
Provision for (benefit from) income taxes for the years ended December 31, 2021, 2020 and 2019 consist of the following (in thousands)
Year Ended December 31,
202120202019
Current:
Federal$64,585 $20,162 $23,703 
State
10,234 4,087 1,888 
Foreign
1,914 4,027 568 
76,733 28,276 26,159 
Deferred:
Federal(52,162)(29,235)(720)
State
(2,394)(4,800)(99)
Foreign
(11,204)(4,013)(18,146)
(65,760)(38,048)(18,965)
Total provision for (benefit from) income taxes.
$10,973 $(9,772)$7,194 
Summary of Reconciliation of Federal Statutory Income Tax Rate to the Effective Income Tax Rate
The reconciliation of federal statutory income tax rate to the effective income tax rate is as follows (in thousands):
Years ended December 31,
202120202019
Tax provision (benefit) at U.S. federal statutory rate$9,725 $(28,498)$26,509 
State income taxes, net of federal benefit1,866 (1,137)1,412 
Foreign income taxed at different rates10,563 8,710 2,887 
Change in foreign deferred tax rate— (6,038)(17,143)
Stock-based compensation(8,807)10,347 1,671 
Foreign-derived intangible income(10,477)(3,518)(8,600)
Research and development credits(6,193)(2,561)(1,025)
Extinguishments of acquisition-related contingent consideration— 12,237 — 
Foreign Income Inclusion(2,622)— — 
Change in valuation allowance15,905 — — 
Other1,013 686 1,483 
Total provision for (benefit from) income taxes$10,973 $(9,772)$7,194 
Summary of Current and Deferred Tax Assets and Liabilities
The following summarizes the current and deferred tax assets and liabilities (in thousands):
As of December 31,
20212020
Deferred tax assets:
Accrued expenses and reserves$6,374 $4,757 
Stock-based compensation14,651 1,955 
Tax credit carryforwards4,835 2,526 
Net operating loss12,042 3,787 
Identified intangibles— 8,996 
Operating lease liability16,622 20,551 
Other comprehensive income16,251 — 
Foreign tax deduction12,363 — 
Other2,247 (256)
Valuation allowance(18,842)(531)
Total deferred tax assets66,543 41,785 
Deferred tax liabilities:

Depreciation and amortization(5,433)(6,857)
Identified intangibles(6,049)— 
Operating lease right-of-use assets(16,622)(20,345)
Total deferred tax liabilities(28,104)(27,202)
Net deferred tax assets38,439 14,583 
Summary of Activity Related to the Gross Unrecognized Tax Benefits
The following table summarizes the activity related to the gross unrecognized tax benefits (in thousands):
As of December 31,
202120202019
Balance at beginning of year
$14,401 $6,646 $2,858 
Increases related to prior year positions
5,027 4,681 2,377 
Increases related to current year positions
2,631 3,498 1,581 
Decreases related to lapse of statutes
(172)(424)(170)
Decreases related to settlements
(3,431)— — 
Balance at end of year
$18,456 $14,401 $6,646 
v3.22.0.1
Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Summary of Property and Equipment, Net
The following table presents the property and equipment, net by geographic area (in thousands):
As of December 31,
20212020
United States$25,681 $27,942 
Germany22,872 11 
Netherlands14,265 — 
All other countries790 634 
Total property and equipment, net
$63,608 $28,587 
v3.22.0.1
Description of Business (Details) - USD ($)
$ / shares in Units, $ in Millions
Apr. 30, 2021
Apr. 19, 2021
Dec. 31, 2021
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)     1,700,000,000 429,600,000
Common Class A        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)     1,500,000,000 386,400,000
Common Class B        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)     200,000,000 0
Restated Certificate of Incorporation | Common Class A        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)   1,500,000,000    
Restated Certificate of Incorporation | Common Class B        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)   200,000,000    
Restated Certificate of Incorporation | Common Class C        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock, shares authorized (in shares)   150,000,000    
Restated Certificate of Incorporation | Preferred Stock        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Preferred stock, shares authorized (in shares)   100,000,000    
Conversion Of Class A Common Stock Into Class B Common Stock | Common Class A | Adam Foroughi        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock shares converted from one class to another (in shares)   150,307,622    
Conversion Of Class A Common Stock Into Class B Common Stock | Common Class A | Herald Chen        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock shares converted from one class to another (in shares)   150,307,622    
Conversion Of Class A Common Stock Into Class B Common Stock | Common Class A | KKR Denali        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Common stock shares converted from one class to another (in shares)   150,307,622    
KKR Denali Holdings L P        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Repayment of revolving credit facility $ 400.0      
IPO        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Issuance of Class A common stock (in shares)   22,500,000    
Sale of stock issue price (in dollars per share)   $ 80.00    
Sale of stock net consideration received on the transaction   $ 1,750.0    
Underwriting discounts and commissions   47.2    
Offering expenses   $ 7.9    
v3.22.0.1
Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
distribution_partner
Dec. 31, 2020
USD ($)
distribution_partner
Dec. 31, 2019
USD ($)
Accounting Policies [Line Items]      
Contract with Customer, Liability, Revenue Recognized $ 86,900,000 $ 8,200,000  
Deferred offering costs 0 3,600,000  
Capitalized computer software, additions 0 0 $ 0
Impairment, long-lived asset, held-for-use 0 0 0
Advertising expense $ 983,700,000 $ 550,900,000 $ 436,100,000
Minimum threshold percentage of income tax benefit for settlement with tax authority 50.00%    
ESPP      
Accounting Policies [Line Items]      
Expiration period 24 months    
Minimum      
Accounting Policies [Line Items]      
Estimated average user life 6 months    
Maximum      
Accounting Policies [Line Items]      
Estimated average user life 9 months    
Accounts Receivable | Two Distribution Partners      
Accounting Policies [Line Items]      
Number of major distribution partner | distribution_partner 2 2  
Accounts Receivable | Customer Concentration Risk | Two Distribution Partners      
Accounting Policies [Line Items]      
Concentration risk, percentage   10.00%  
Accounts Receivable | Customer Concentration Risk | Major Distrubutor Partner One      
Accounting Policies [Line Items]      
Concentration risk, percentage   20.00%  
Accounts Receivable | Customer Concentration Risk | Major Distrubutor Partner Two      
Accounting Policies [Line Items]      
Concentration risk, percentage   13.00%  
v3.22.0.1
Summary of Significant Accounting Policies - Summary of Revenue Disaggregated by Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue from External Customer [Line Items]      
Revenue $ 2,793,104 $ 1,451,086 $ 994,104
Total Business Revenue      
Revenue from External Customer [Line Items]      
Revenue 1,334,509 711,152 595,948
Business Revenue—Software Platform      
Revenue from External Customer [Line Items]      
Revenue 673,952 207,285 198,305
Business Revenue—Apps      
Revenue from External Customer [Line Items]      
Revenue 660,557 503,867 397,643
Consumer Revenue      
Revenue from External Customer [Line Items]      
Revenue $ 1,458,595 $ 739,934 $ 398,156
v3.22.0.1
Summary of Significant Accounting Policies - Summary of Revenue Disaggregated by Geography (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Total Revenue $ 2,793,104 $ 1,451,086 $ 994,104
United States      
Disaggregation of Revenue [Line Items]      
Total Revenue 1,687,080 895,987 622,051
Rest of the World      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 1,106,024 $ 555,099 $ 372,053
v3.22.0.1
Summary of Significant Accounting Policies - Summary of Property and Equipment, net (Details)
 12 Months Ended
Dec. 31, 2021
Software and licenses  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 10 years
Minimum | Computer equipment  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Minimum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Maximum | Computer equipment  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
Maximum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
v3.22.0.1
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets $ 2,123,511 $ 12,093
Money market funds | Cash and cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 1,070,979 6,413
Money market funds | Restricted cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 1,050,000  
Marketable equity securities | Prepaid expenses and other current assets    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 2,532  
Embedded derivative | Long-term debt    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets   5,680
Convertible Security | Deferred acquisition costs, current    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Liability   46,500
Level 1    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 2,123,511 6,413
Level 1 | Money market funds | Cash and cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 1,070,979 6,413
Level 1 | Money market funds | Restricted cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 1,050,000  
Level 1 | Marketable equity securities | Prepaid expenses and other current assets    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 2,532  
Level 1 | Embedded derivative | Long-term debt    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets   0
Level 1 | Convertible Security | Deferred acquisition costs, current    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Liability   0
Level 2    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0 0
Level 2 | Money market funds | Cash and cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0 0
Level 2 | Money market funds | Restricted cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0  
Level 2 | Marketable equity securities | Prepaid expenses and other current assets    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0  
Level 2 | Embedded derivative | Long-term debt    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets   0
Level 2 | Convertible Security | Deferred acquisition costs, current    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Liability   0
Level 3    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0 5,680
Level 3 | Money market funds | Cash and cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0 0
Level 3 | Money market funds | Restricted cash equivalents    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets 0  
Level 3 | Marketable equity securities | Prepaid expenses and other current assets    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets $ 0  
Level 3 | Embedded derivative | Long-term debt    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Assets   5,680
Level 3 | Convertible Security | Deferred acquisition costs, current    
Fair Value By Fair Value Hierarchy Level [Line Items]    
Financial Liability   $ 46,500
v3.22.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Apr. 16, 2021
Oct. 31, 2021
Aug. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Feb. 28, 2021
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Convertible security stated value   $ 20.0 $ 20.0        
Convertible security, conversion price (in dollars per share)   $ 61.70 $ 49.40        
Gain (loss) due to change in the fair value       $ 7.6 $ 5.7    
Embedded derivative $ 17.8           $ 5.6
Level 1              
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Marketable securities, unrealized gain       $ 2.5      
Amended Revolving Credit Facility | Affiliate of KKR Denali              
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Decrease in the variable interest rate margin 0.25%     0.25%      
Class A, Class B, and Class F Common Stock              
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Issuance of Class A common stock in connection with acquisitions (in shares)         2,479,996 3,267,792  
Common Class A | Class A, Class B, and Class F Common Stock              
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Issuance of Class A common stock in connection with acquisitions (in shares)   324,156 405,205        
Convertible Security              
Disclosure Of Reconciliation Of The Companys Financial Asset And Liability Measured At Fair Value [Line Items]              
Gain (loss) due to change in the fair value       $ (3.5) $ (1.5)    
v3.22.0.1
Fair Value Measurements - Summary of Reconciliation of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Convertible Security    
Change in fair value recognized in earnings $ 7,600 $ 5,700
Embedded derivative | Level 3    
Embedded Derivative    
Balance at beginning of period 5,680 0
Initial fair value recognition   0
Addition related to the issuance of term loans in February 2021 5,630  
Extinguishment of term loans in February 2021 (1,130)  
Change in fair value recognized in earnings 7,640 5,680
Settlement (17,820)  
Transfers 0  
Balance at end of period 0 5,680
Convertible Security    
Convertible Security    
Change in fair value recognized in earnings (3,500) (1,500)
Convertible Security | Level 3    
Convertible Security    
Balance at beginning of period 46,500 0
Initial fair value recognition   45,000
Addition related to the issuance of term loans in February 2021 0  
Extinguishment of term loans in February 2021 0  
Change in fair value recognized in earnings 3,500 1,500
Settlement 0  
Transfers (50,000)  
Balance at end of period $ 0 $ 46,500
v3.22.0.1
Supplemental Financial Statement Information - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 103,267 $ 58,168
Less: accumulated depreciation (39,659) (29,581)
Total property and equipment, net 63,608 28,587
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 77,730 33,977
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 18,640 18,176
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 3,686 2,824
Software and licenses    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 3,211 $ 3,191
v3.22.0.1
Supplemental Financial Statement Information - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Depreciation expense $ 25.6 $ 14.2 $ 7.9
Computer equipment      
Property, Plant and Equipment [Line Items]      
Networking equipment under finance lease $ 63.6 $ 21.0  
v3.22.0.1
Supplemental Financial Statement Information - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Tax accruals and withholdings $ 67,159 $ 40,127
Compensation and related liabilities 32,862 39,076
Current finance lease liabilities 21,999 2,821
Accrued expenses and other 11,750 13,033
Total accrued liabilities $ 133,770 $ 95,057
v3.22.0.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Purchase obligation $ 262,452    
Payments for purchase obligations 55,000 $ 0 $ 0
Standby Letters of Credit      
Letters of credit outstanding, amount $ 11,100    
v3.22.0.1
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]  
2022 $ 15,465
2023 58,483
2024 69,140
2025 86,270
2026 33,094
Total non-cancelable purchase commitments $ 262,452
v3.22.0.1
Acquisitions - Narrative (Details)
$ in Thousands
 1 Months Ended 2 Months Ended 7 Months Ended 12 Months Ended
Apr. 20, 2021
USD ($)
Nov. 30, 2020
USD ($)
May 19, 2020
USD ($)
Apr. 06, 2020
USD ($)
Jan. 31, 2020
USD ($)
Aug. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
May 31, 2021
USD ($)
shares
Apr. 30, 2021
USD ($)
transaction
Feb. 28, 2021
USD ($)
Jan. 31, 2021
USD ($)
Nov. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Apr. 30, 2020
USD ($)
app
developer
transaction
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Business Acquisition [Line Items]                                      
Acquisition of business through issuance of common stock and common stock warrants                                 $ 0 $ 38,167 $ 192
Issuance of convertible securities related to acquisitions                                 342,170 45,000 $ 0
Conversion of securities to common stock                                 392,170    
Transactions | transaction                             2        
Payments for asset acquisitions                             $ 35,000        
Asset acquisition, consideration transferred                             $ 35,000        
Asset acquisition, development services agreement term                             2 years        
Asset acquisition, consideration transferred, contingent consideration, earn-out term                             4 years        
Asset acquisition, number of apps | app                             2        
Asset acquisition, number of game developers | developer                             2        
Development services agreement, renewal term                             2 years        
Asset acquisition, consideration transferred, baseline revenue, cumulative amount                             $ 45,000        
Deferred cash consideration payment period                         12 months            
Asset acquisition, contingent consideration liability                         $ 34,800            
Gain (loss) on settlement of asset acquisition related contingent consideration                         74,700            
2019 Acquisition Related Contingent Consideration Settlement                                      
Business Acquisition [Line Items]                                      
Asset acquisition, contingent consideration settlement cash payment                         3,400            
Asset acquisition, contingent consideration settlement fair value of common stock issued                         $ 106,100            
Acquisition of Certain Mobile Game Apps                                      
Business Acquisition [Line Items]                                      
Transactions | transaction                 2                    
Payments for asset acquisitions             $ 130,000   $ 300,000               53,700 46,400  
Asset acquisition, consideration transferred, transaction cost             4,000   6,000                    
Asset acquisition, consideration transferred           $ 150,000 $ 134,000   $ 306,000                    
Asset acquisition, acquired asset amortization period           6 years 9 years   8 years                    
Asset acquisition, development services agreement term             4 years   4 years                    
Asset acquisition, consideration transferred, contingent consideration, earn-out term                 4 years                    
Asset acquisition, consideration transferred, contingent consideration, earn-out payment                 $ 50,000                    
Asset acquisition, consideration transferred, contingent consideration, costs                                 116,600 38,800  
A2020 Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Asset acquisition, consideration transferred, contingent consideration, costs                                 77,100    
A2019 Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Asset acquisition, consideration transferred, contingent consideration, costs                                 14,800 $ 31,900  
Recoded Asset Acquisition 2019                                      
Business Acquisition [Line Items]                                      
Consideration paid                   $ 90,000 $ 60,000                
Zenlife Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Asset acquisition, development services agreement term                           4 years          
Athena Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Payments for asset acquisitions                       $ 110,000              
Asset acquisition, consideration transferred, contingent consideration, earn-out term                       4 years              
Asset acquisition, future earn out term                       4 years              
Asset acquisition, deferred tax liability   $ 700                   $ 700              
Asset acquisition, deferred cash consideration   20,000                   20,000              
Deferred cash consideration, fair value on acquisition date   19,000                   19,000              
Convertible security, fair value on acquisition date                       $ 45,000              
Estimated useful life                       6 years              
Deferred cash consideration payment period                       18 months              
Athena Asset Acquisition | Mobile Game Apps                                      
Business Acquisition [Line Items]                                      
Finite-lived intangible assets acquired   170,700                                  
Athena Asset Acquisition | Tradename                                      
Business Acquisition [Line Items]                                      
Finite-lived intangible assets acquired   $ 4,000                                  
Mobile App One                                      
Business Acquisition [Line Items]                                      
Asset acquisition, acquired asset amortization period                             3 years        
Mobile App Two                                      
Business Acquisition [Line Items]                                      
Asset acquisition, acquired asset amortization period                             5 years        
Common Class A | Athena Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Stated value of convertible security                       $ 40,000              
Adjust GmbH                                      
Business Acquisition [Line Items]                                      
Total consideration $ 967,800                                    
Issuance of convertible securities related to acquisitions 342,200                                    
Consideration paid 578,000                                    
Business combination, consideration transferred, liabilities incurred, cash holdback 47,600                                    
Business acquisition, transaction costs 3,100                                    
Deferred tax assets 1,600                                    
Deferred tax liabilities 66,300                                    
Adjustment, deferred tax liabilities                                 800    
Adjustment, deferred tax assets                                 13,600    
Business acquisition, goodwill, expected tax deductible amount $ 692,500                                    
Business combination, pro forma information, revenue of acquiree actual                                 77,900    
Business combination, pro forma information, earnings or loss of acquiree , actual                                 37,100    
Conversion of securities to common stock (in shares) | shares               6,320,688                      
Conversion of securities to common stock               $ 342,200                      
Total valuation                                 $ 967,817    
Adjust GmbH | Tradename                                      
Business Acquisition [Line Items]                                      
Estimated useful life 5 years                                    
Adjust GmbH | Carrying Reported Amount Fair Value Disclosure                                      
Business Acquisition [Line Items]                                      
Total consideration $ 980,000                                    
Acquisition of business through issuance of common stock and common stock warrants 352,000                                    
Issuance of convertible securities related to acquisitions $ 50,000                                    
Geewa A.S                                      
Business Acquisition [Line Items]                                      
Total consideration         $ 25,600                            
Consideration paid         23,500                            
Consideration indemnity holdback         $ 2,100                            
Business combination, consideration transferred indemnity hold back term         12 months                            
Business combination, acquisition related costs         $ 300                            
Total valuation         $ 25,629                            
Geewa A.S | Tradename                                      
Business Acquisition [Line Items]                                      
Estimated useful life         5 years                            
Redemption Games                                      
Business Acquisition [Line Items]                                      
Total consideration       $ 53,700                              
Business combination, acquisition related costs       $ 600                              
Business acquisition, percentage of voting interests acquired       95.50%                              
Total valuation       $ 56,232                              
Business combination, ownership interest                       0.982              
Redemption Games | Tradename                                      
Business Acquisition [Line Items]                                      
Estimated useful life       5 years                              
Redemption Games | Convertible Securities Convertible into Class A Common Stock                                      
Business Acquisition [Line Items]                                      
Business combination, exchange of minority shares                       0.027              
Redemption Games | Common Class A                                      
Business Acquisition [Line Items]                                      
Acquisition of business through issuance of common stock and common stock warrants                       $ 4,500              
Fair value of minority shares                       $ 1,500              
Machine Zone                                      
Business Acquisition [Line Items]                                      
Total consideration     $ 328,600                                
Acquisition of business through issuance of common stock and common stock warrants     38,200                                
Consideration paid     287,100                                
Business combination, pro forma information, revenue of acquiree actual                               $ 113,800      
Business combination, pro forma information, earnings or loss of acquiree , actual                               $ 89,700      
Business combination, acquisition related costs     2,800                                
Total valuation     328,555                                
Business combination, settlement of preexisting receivables     3,300                                
Machine Zone | IP License                                      
Business Acquisition [Line Items]                                      
Business combination, remaining noncancelable purchase commitment     $ 37,100                                
Estimated useful life     2 years                                
Machine Zone | Tradename                                      
Business Acquisition [Line Items]                                      
Estimated useful life     10 years                                
Exit of Machine Zone Real Estate Leases                                      
Business Acquisition [Line Items]                                      
Business combination, separately recognized transaction increase (decrease) in operating lease right of use asset     $ 57,600                                
Increase (decrease) in operating lease, liability     63,100                                
Business combination, separately recognized transactions write off of leasehold improvements and other assets     15,000                                
Adjustments to additional paid in capital, warrant issued     $ 400                                
Zenlife Asset Acquisition                                      
Business Acquisition [Line Items]                                      
Payments for asset acquisitions                           $ 160,000          
Asset acquisition, acquired asset amortization period                           5 years          
Asset acquisition, future earn out term                           4 years          
Asset acquisition, recognized identifiable assets acquired and liabilities assumed mobile game apps                           $ 173,300          
Asset acquisition, deferred tax liability                           $ 13,300          
v3.22.0.1
Acquisitions - Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Apr. 20, 2021
May 19, 2020
Apr. 06, 2020
Jan. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]              
Goodwill         $ 966,427 $ 249,773 $ 137,121
Adjust GmbH              
Business Acquisition [Line Items]              
Cash and cash equivalents         12,155    
Accounts receivable and other current assets         21,840    
Goodwill         761,747    
Operating lease right-of-use assets         8,130    
Property and equipment, net         1,897    
Finance lease right-of-use assets         43,156    
Other assets         16,791    
Accounts payable, accrued liabilities and other current liabilities         (15,540)    
Deferred revenue         (5,600)    
Operating lease liabilities         (8,130)    
Finance lease liabilities         (43,156)    
Deferred income tax liability         (65,473)    
Total purchase consideration         967,817    
Adjust GmbH | Customer Relationships              
Business Acquisition [Line Items]              
Intangible assets         155,000    
Estimated useful life 12 years            
Adjust GmbH | Developed Technology              
Business Acquisition [Line Items]              
Intangible assets         77,000    
Estimated useful life 6 years            
Adjust GmbH | Tradename              
Business Acquisition [Line Items]              
Intangible assets         $ 8,000    
Estimated useful life 5 years            
Geewa A.S              
Business Acquisition [Line Items]              
Cash and cash equivalents       $ 1,043      
Accounts receivable and other current assets       1,457      
Goodwill       9,805      
Property and equipment, net       369      
Accounts payable, accrued liabilities and other liabilities       (4,935)      
Total purchase consideration       25,629      
Geewa A.S | Developed Technology              
Business Acquisition [Line Items]              
Intangible assets       $ 590      
Estimated useful life       2 years      
Geewa A.S | Tradename              
Business Acquisition [Line Items]              
Intangible assets       $ 260      
Estimated useful life       5 years      
Geewa A.S | Apps              
Business Acquisition [Line Items]              
Intangible assets       $ 17,040      
Estimated useful life       5 years      
Redemption Games              
Business Acquisition [Line Items]              
Cash and cash equivalents     $ 2,787        
Accounts receivable and other current assets     1,850        
Goodwill     20,198        
Other assets     131        
Accounts payable     (2,492)        
Other liabilities     (11,142)        
Total purchase consideration     56,232        
Redeemable noncontrolling interest     (2,556)        
Total purchase consideration, net     53,676        
Redemption Games | Tradename              
Business Acquisition [Line Items]              
Intangible assets     $ 900        
Estimated useful life     5 years        
Redemption Games | Apps              
Business Acquisition [Line Items]              
Intangible assets     $ 44,000        
Estimated useful life     5 years        
Machine Zone              
Business Acquisition [Line Items]              
Cash and cash equivalents   $ 37,767          
Accounts receivable and other current assets   27,284          
Goodwill   82,353          
Operating lease right-of-use assets   125,639          
Property and equipment, net   42,312          
Accounts payable, accrued liabilities and other current liabilities   (81,591)          
Deferred revenue   (43,200)          
License obligations   (35,685)          
Operating lease liabilities   (139,875)          
Total purchase consideration   328,555          
Machine Zone | Tradename              
Business Acquisition [Line Items]              
Intangible assets   $ 13,000          
Estimated useful life   10 years          
Machine Zone | Apps              
Business Acquisition [Line Items]              
Intangible assets   $ 272,000          
Machine Zone | Apps | Minimum              
Business Acquisition [Line Items]              
Estimated useful life   3 years          
Machine Zone | Apps | Maximum              
Business Acquisition [Line Items]              
Estimated useful life   5 years          
Machine Zone | IP License              
Business Acquisition [Line Items]              
Intangible assets   $ 28,551          
Estimated useful life   2 years          
v3.22.0.1
Acquisitions - Supplemental Pro Forma Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Combination and Asset Acquisition [Abstract]      
Revenue $ 2,829,060 $ 1,625,476 $ 1,332,476
Net income (loss) $ 36,614 $ (179,415) $ (105,353)
v3.22.0.1
Acquisitions - Pro Forma Adjustments to Net Income (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) $ 35,338 $ (125,934) $ 119,040
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) (7,325) (48,006) (61,969)
A net increase (decrease) in revenue related to fair value adjustment      
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) 1,901 54,126 (61,928)
A decrease (increase) in expenses related to transaction expenses      
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) 14,115 (2,327) 0
An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions      
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) (2,640) 93,432 147,943
A (decrease) in other income - liability classified warrants      
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) 0 (1,730) (9,040)
An (increase) in tax provision      
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]      
Net income (loss) $ (1,381) $ (21,906) $ (3,305)
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net - Summary of Goodwill Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Balance at beginning of period $ 249,773 $ 137,121
Goodwill acquired 762,553 112,356
Foreign currency translation (45,899) 296
Balance at end of period $ 966,427 $ 249,773
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net - Summary of Intangible Assets Acquired Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]    
Net Book Value $ 1,709,347 $ 1,086,332
Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 2,302,253 1,358,052
Accumulated Amortization (592,906) (271,720)
Net Book Value 1,709,347 1,086,332
Short and Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 2,342,601 1,387,921
Accumulated Amortization (631,630) (297,319)
Net Book Value $ 1,710,971 1,090,602
Apps | Short Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 4 months 24 days  
Gross Carrying Value $ 40,348 29,869
Accumulated Amortization (38,724) (25,599)
Net Book Value $ 1,624 4,270
Apps | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 5 years  
Gross Carrying Value $ 1,939,180 1,222,417
Accumulated Amortization (529,012) (232,832)
Net Book Value $ 1,410,168 989,585
Customer Relationships | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 11 years 3 months 18 days  
Gross Carrying Value $ 145,870 0
Accumulated Amortization (8,442) 0
Net Book Value $ 137,428 0
User base | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 4 years 3 months 18 days  
Gross Carrying Value $ 68,817 68,817
Accumulated Amortization (27,369) (17,617)
Net Book Value $ 41,448 51,200
License asset | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 1 year 6 months  
Gross Carrying Value $ 25,640 28,551
Accumulated Amortization 0 (10,918)
Net Book Value $ 25,640 17,633
Developed technology | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 5 years 2 months 12 days  
Gross Carrying Value $ 87,851 14,946
Accumulated Amortization (21,435) (8,489)
Net Book Value $ 66,416 6,457
Other | Long Lived Intangible Assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Estimated useful life 5 years 7 months 6 days  
Gross Carrying Value $ 34,895 23,321
Accumulated Amortization (6,648) (1,864)
Net Book Value $ 28,247 $ 21,457
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net - Summary of Finite-Lived Intangible Assets, Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Amortization of intangible assets $ 396,387 $ 239,926 $ 82,428
Cost of revenue      
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Amortization of intangible assets 373,726 228,339 74,787
Sales and marketing      
Finite Lived Intangible Assets Amortization Expense [Line Items]      
Amortization of intangible assets $ 22,661 $ 11,587 $ 7,641
v3.22.0.1
Goodwill and Acquired Intangible Assets, Net - Summary of Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2022 $ 339,254
2023 329,084
2024 320,537
2025 320,537
2026 313,223
Thereafter 88,336
Total $ 1,710,971
v3.22.0.1
Leases - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
ft²
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Operating Leased Assets [Line Items]      
Operating leases liabilities $ 25.5 $ 23.8 $ 3.2
Operating lease payments use 6.1 10.8 7.4
Depreciation expense 25.6 14.2 7.9
Finance lease Interest expense 1.5 0.3 0.2
Finance lease payments 15.3 9.7 5.9
Operating sub lease payments to be received 2022 5.5    
Operating sub lease payments to be received 2023 $ 0.6    
Unrelated Third Party      
Operating Leased Assets [Line Items]      
Area of real estate property | ft² 104,852    
Network Equipment Under Finance Lease      
Operating Leased Assets [Line Items]      
Finance lease term of contract 2 years 6 months    
Depreciation expense $ 17.8 $ 8.4 $ 5.5
Minimum      
Operating Leased Assets [Line Items]      
Lessee, operating lease, remaining lease term 2 months    
Lessee, operating lease, option to extend term 2 years    
Maximum      
Operating Leased Assets [Line Items]      
Lessee, operating lease, remaining lease term 8 years 2 months 12 days    
Lessee, operating lease, option to extend term 5 years    
v3.22.0.1
Leases - Summary of Operating Lease Asstes and Liabilites (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating Lease Asstes and Liabilites [Abstract]    
Operating lease right-of-use assets $ 70,975 $ 84,336
Current operating lease liabilities 18,392 22,206
Non-current operating lease liabilities $ 62,498 $ 71,755
Weighted-average remaining term (years) 5 years 3 months 18 days 3 years 8 months 12 days
Weighted-average discount rate 5.00% 4.70%
v3.22.0.1
Leases - Summary of Lease, Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lease, Cost [Abstract]      
Operating lease cost $ 28,676 $ 17,372 $ 3,520
Short-term lease cost 9,683 8,196 3,231
Variable lease cost 7,862 2,147 479
Total lease cost $ 46,221 $ 27,715 $ 7,230
v3.22.0.1
Leases - Summary of Finance Lease Asstes and Liabilites (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Finance Lease Asstes and Liabilites [Abstract]    
Finance lease right-of-use assets $ 44,575 $ 5,067
Current finance lease liabilities 21,999 2,821
Non-current finance lease liabilities $ 24,085 $ 2,340
Weighted-average remaining term (years) 2 years 6 months 7 months 6 days
Weighted-average discount rate 5.00% 6.00%
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net Property and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non-current liabilities Other non-current liabilities
v3.22.0.1
Leases - Summary of Operating Sublease (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Lessee, Operating Sublease, Description [Abstract]    
Fixed sublease expense $ 9,524 $ 5,769
Variable sublease expense 1,421 836
Sublease income (9,421) (5,678)
Variable sublease income (1,407) (836)
Net Loss $ 117 $ 91
v3.22.0.1
Leases - Summary of Lease Liability Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating Leases    
2022 $ 21,683  
2023 15,143  
2024 13,655  
2025 13,648  
2026 12,310  
Thereafter 15,365  
Total lease payments 91,804  
Less: amount representing interest 10,914  
Present value of future lease payments 80,890  
Current operating lease liabilities 18,392 $ 22,206
Non-current operating lease liabilities 62,498 71,755
Finance Leases    
2022 23,561  
2023 15,163  
2024 6,237  
2025 2,885  
2026 975  
Thereafter 0  
Total lease payments 48,821  
Less: amount representing interest 2,737  
Present value of future lease payments 46,084  
Less: current obligations under leases 21,999 2,821
Non-current lease obligations 24,085 $ 2,340
Total    
2022 45,244  
2023 30,306  
2024 19,892  
2025 16,533  
2026 13,285  
Thereafter 15,365  
Total lease payments 140,625  
Less: amount representing interest 13,651  
Present value of future lease payments 126,974  
Less: current obligations under leases 40,391  
Non-current lease obligations $ 86,583  
v3.22.0.1
Credit Agreement - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Oct. 25, 2021
Apr. 16, 2021
Mar. 31, 2021
Feb. 12, 2021
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Feb. 28, 2021
Nov. 30, 2020
Oct. 27, 2020
May 06, 2020
Apr. 23, 2019
Aug. 15, 2018
Debt Instrument [Line Items]                            
Embedded derivative   $ 17,800,000             $ 5,600,000          
Loss on debt extinguishment           $ 18,236,000 $ 0 $ 0            
Line of credit non current outstanding     $ 400,000,000   $ 400,000,000                  
Change in fair value recognized in earnings           7,600,000 $ 5,700,000              
Debt discount and debt issuance costs           $ 44,630,000                
Percentage of net cash proceeds above a threshold amount           100.00%                
Percentage of annual excess cash flow above a threshold amount           50.00%                
Percentage of net cash proceeds of certain other debt incurrences           100.00%                
Secured Debt                            
Debt Instrument [Line Items]                            
Quarterly repayments       $ 4,600,000                    
Embedded derivative   17,800,000                        
Change in fair value recognized in earnings   $ 1,100,000                        
Annual Excess Cash Flow Above A Threshold Amount Step Down Event One                            
Debt Instrument [Line Items]                            
Annual excess cash flow above a threshold amount, step down percentage           25.00%                
Less than or equal to 3.50 to 1.00 | Annual Excess Cash Flow Above A Threshold Amount Step Down Event Two                            
Debt Instrument [Line Items]                            
Net leverage ratio           3.50                
Less than or equal to 4.00 to 1.00 | Annual Excess Cash Flow Above A Threshold Amount Step Down Event One                            
Debt Instrument [Line Items]                            
Consolidated first lien secured debt to consolidated EBITDA, ratio           4.00                
Greater than 3.50 to 1.00 | Annual Excess Cash Flow Above A Threshold Amount Step Down Event One                            
Debt Instrument [Line Items]                            
Consolidated first lien secured debt to consolidated EBITDA, ratio           3.50                
Net Cash Proceeds Above A Threshold Amount Step Down Event One                            
Debt Instrument [Line Items]                            
Net cash proceeds above a threshold amount, step down percentage           50.00%                
Net Cash Proceeds Above A Threshold Amount Step Down Event One | Less than or equal to 3.50 to 1.00                            
Debt Instrument [Line Items]                            
Consolidated first lien secured debt to consolidated EBITDA, ratio           3.50                
Net Cash Proceeds Above A Threshold Amount Step Down Event One | Greater than 2.50 to 1.00                            
Debt Instrument [Line Items]                            
Consolidated first lien secured debt to consolidated EBITDA, ratio           2.50                
Net Cash Proceeds Above A Threshold Amount Step Down Event Two                            
Debt Instrument [Line Items]                            
Net cash proceeds above a threshold amount, step down percentage           0.00%                
Net Cash Proceeds Above A Threshold Amount Step Down Event Two | Greater than 2.50 to 1.00                            
Debt Instrument [Line Items]                            
Consolidated first lien secured debt to consolidated EBITDA, ratio           2.50                
Minimum                            
Debt Instrument [Line Items]                            
Extinguishment of debt, amount           $ 10,000,000                
Closing Term Loans | Secured Debt                            
Debt Instrument [Line Items]                            
New term loan                         $ 400,000,000 $ 820,000,000
Amended Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Lender commitment under the line of credit                     $ 540,000,000     $ 50,000,000
Debt instrument increase in the credit facility     250,000,000   250,000,000         $ 150,000,000        
Amended Revolving Credit Facility | Secured Debt                            
Debt Instrument [Line Items]                            
Lender commitment under the line of credit       10,000,000                    
Interest rate, effective percentage   3.90%                        
Amended Revolving Credit Facility | Affiliate of KKR Denali                            
Debt Instrument [Line Items]                            
Decrease in the variable interest rate margin   0.25%       0.25%                
Additional decrease in the variable interest rate margin           0.25%                
Proceeds from long term line of credit facility     250,000,000                      
Line of credit facility maximum borrowing capacity     $ 600,000,000   600,000,000                  
Amended Revolving Credit Facility | Affiliate of KKR Denali | Secured Debt                            
Debt Instrument [Line Items]                            
Decrease in the variable interest rate margin   0.25%                        
Amended Revolving Credit Facility | Base Rate                            
Debt Instrument [Line Items]                            
Debt instrument, interest rate, stated percentage           1.50%                
Amended Revolving Credit Facility | LIBOR                            
Debt Instrument [Line Items]                            
Debt instrument, interest rate, stated percentage           2.50%                
Third Amendment Term Loans | Secured Debt                            
Debt Instrument [Line Items]                            
New term loan                       $ 300,000,000    
Quarterly repayments           $ 3,100,000                
Debt instrument, periodic payment, principal percentage           0.25%                
Repayment of long term debt       298,200,000                    
Term Loans And Amended Revolving Credit Facility | Base Rate                            
Debt Instrument [Line Items]                            
Debt instrument, interest rate, stated percentage           2.50%                
Term Loans And Amended Revolving Credit Facility | LIBOR                            
Debt Instrument [Line Items]                            
Debt instrument, interest rate, stated percentage           3.50%                
Term Loans And Amended Revolving Credit Facility | Federal Funds Rate | Base Rate                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate           0.50%                
Term Loans And Amended Revolving Credit Facility | LIBOR Rate | Base Rate                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate           1.00%                
Fifth Amendment Term Loan | Secured Debt                            
Debt Instrument [Line Items]                            
New term loan       $ 597,800,000                    
Percentage change of present value of cash flow between the original and modified debt       10.00%                    
Third party debt issuance costs that were expensed immediately         2,900,000                  
Debt issuance costs       $ 3,500,000                    
Debt issuance costs, gross       600,000                    
Loss on debt extinguishment         $ 16,900,000                  
Fifth Amendment Term Loan | Contingent Interest Adjustment Feature | Secured Debt                            
Debt Instrument [Line Items]                            
Embedded derivative       5,600,000                    
Fifth Amendment Term Loan And Revolving Credit Facility | Secured Debt                            
Debt Instrument [Line Items]                            
Debt issuance costs paid to related party       $ 800,000                    
Sixth Amendment Term Loan | Secured Debt                            
Debt Instrument [Line Items]                            
New term loan $ 1,500,000,000                          
Debt instrument, periodic payment, principal percentage 0.25%                          
Debt instrument, interest rate, stated percentage 3.70%                          
Debt instrument, periodic payment $ 3,800,000                          
Debt discount and debt issuance costs 15,700,000                          
Sixth Amendment Term Loan | KKR Capital Markets LLC | Secured Debt                            
Debt Instrument [Line Items]                            
Expenses from transactions with related party $ 1,400,000                          
Sixth Amendment Term Loan | Base Rate | Secured Debt                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate           2.00%                
Sixth Amendment Term Loan | LIBOR | Secured Debt                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate           3.00%                
Sixth Amendment Term Loan | LIBOR | Minimum | Secured Debt                            
Debt Instrument [Line Items]                            
Debt instrument, basis spread on variable rate           0.50%                
v3.22.0.1
Credit Agreement - Schedule of Debt Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Amortization of debt issuance costs and discount $ 12,825 $ 8,152 $ 4,979
Loss on debt extinguishment 18,236 0 0
Term Loans      
Debt Instrument [Line Items]      
Contractual interest coupon 70,882 58,810 65,859
Amortization of debt issuance costs and discount 7,442 7,319 4,754
Loss on debt extinguishment 16,852 0 0
Total interest expense from Term Loans $ 95,176 $ 66,129 $ 70,613
v3.22.0.1
Credit Agreement - Summary of Future Maturities of Long-Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Long-term Debt, Fiscal Year Maturity [Abstract]    
2022 $ 25,810  
2023 33,310  
2024 33,310  
2025 1,736,094  
2026 15,000  
Thereafter 1,428,750  
Total outstanding term loan principal 3,272,274  
Unaccreted discount and debt issuance costs (44,630)  
Total debt 3,227,644  
Less: short-term debt 25,810  
Long-term debt $ 3,201,834 $ 1,583,990
v3.22.0.1
Derivative Instruments (Details) - Receive Variable Pay Fixed Rate - Interest Rate Swap - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Nov. 14, 2018
Derivative [Line Items]        
Interest rate swap notional amount       $ 410.0
Derivatives interest rate swap fixed interest rate       2.9065%
Gain (loss) on fair value hedges recognized in earnings $ 0.0 $ 9.5 $ 2.7  
v3.22.0.1
Convertible Preferred Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Aug. 15, 2018
Jul. 13, 2018
Class of Stock [Line Items]        
Preferred stock, value issued $ 0 $ 399,589    
Preferred stock, shares issued (in shares) 0      
Preferred stock, liquidation preference per share (in dollars per share) $ 3.67      
Preferred stock, shares outstanding (in shares) 0      
Conversion of Preferred Stock to Common stock Trigger        
Class of Stock [Line Items]        
Threshold minimum proceeds from issuance of common stock trigger for conversion of preferred stock $ 75,000      
Series A Preferred Stock | Restated Certificate of Incorporation        
Class of Stock [Line Items]        
Preferred stock, shares authorized (in shares) 109,090,908      
Preferred stock, par or stated value per share (in dollars per share) $ 0.00003      
Series A Convertible Preferred Stock        
Class of Stock [Line Items]        
Preferred stock, convertible conversion price (in dollars per share) $ 3.67      
KKR Denali        
Class of Stock [Line Items]        
Preferred stock, value issued       $ 400,000
KKR Denali | Series A Preferred Stock        
Class of Stock [Line Items]        
Preferred stock, shares issued (in shares)     109,090,908  
v3.22.0.1
Common Stock - Narrative (Details)
$ in Thousands
 12 Months Ended
Jan. 03, 2019
USD ($)
shares
Dec. 31, 2021
class
vote
shares
Apr. 19, 2021
shares
Dec. 31, 2020
shares
Common Stock [Line Items]        
Common stock, shares authorized (in shares)   1,700,000,000   429,600,000
Common stock, number of classes | class   2    
Common stock, shares outstanding (in shares)   375,089,360   226,364,401
Shares issued for each share converted (in shares)   1    
Minimum        
Common Stock [Line Items]        
Conversion of stock conversion period   61 days    
Maximum        
Common Stock [Line Items]        
Conversion of stock conversion period   180 days    
Common Class A        
Common Stock [Line Items]        
Common stock, shares authorized (in shares)   1,500,000,000   386,400,000
Common stock, shares outstanding (in shares)   296,426,738   183,800,251
Number of votes for each warrant or right | vote   1    
Common Class A | Warrant Transfer Agreement | Angel Pride Holdings Limited | Common Stock Warrant        
Common Stock [Line Items]        
Stock issued during period shares in connection with prior debt financing (in shares) 26,021,583      
Proceeds from issuance of common stock warrants | $ $ 868      
Common Class A | Warrant Transfer Agreement | Hontai App Fund Limited Partnership | Common Stock Warrant        
Common Stock [Line Items]        
Stock issued during period shares in connection with prior debt financing (in shares) 8,794,734      
Proceeds from issuance of common stock warrants | $ $ 293      
Common Class B        
Common Stock [Line Items]        
Common stock, shares authorized (in shares)   200,000,000   0
Common stock, shares outstanding (in shares)   78,662,622   0
Number of votes for each warrant or right | vote   20    
Restated Certificate of Incorporation | Common Class A        
Common Stock [Line Items]        
Common stock, shares authorized (in shares)     1,500,000,000  
Common stock, shares outstanding (in shares)     296,426,738  
Restated Certificate of Incorporation | Common Class B        
Common Stock [Line Items]        
Common stock, shares authorized (in shares)     200,000,000  
Common stock, shares outstanding (in shares)     78,662,622  
Restated Certificate of Incorporation | Common Class C        
Common Stock [Line Items]        
Common stock, shares authorized (in shares)     150,000,000  
v3.22.0.1
Stock-based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Feb. 28, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Granted (in shares)   263,200    
Intrinsic value of options outstanding   $ 1,620,000 $ 1,830,000  
Options exercised in period, intrinsic value   $ 622,100 33,800 $ 1,800
Exercised options, right to repurchase, options lapsed, typical percentage   25.00%    
Liabilities related to exercised options subject to repurchase   $ 1,400 100  
Employee promissory note settled in shares $ 17,200      
Employee promissory note settled in cash 3,700      
Stock-based compensation expense   133,177 62,387 $ 10,222
Promissory Notes        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Employee promissory note settled $ 20,900      
Employee promissory note outstanding   $ 15,100 $ 40,400  
Tranche One        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Exercised options, right to repurchase, term   1 year    
Tranche Two        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Exercised options, right to repurchase, term   36 months    
Common Class A        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Number of shares recognized cost (in shares) 60,968      
Number of share options exercised (in shares)   2,884,999 8,022,499  
Common Class A | Promissory Notes        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Early exercised options with promissory note (in shares)   663,856 4,136,677  
Common Class A | Equity Option        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Exercised options subject to repurchase (in shares)   486,999 19,800  
Unvested RSU        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Nonvested award, cost not yet recognized, amount   $ 375,900    
Weighted average vesting period   3 years 8 months 12 days    
Vested in period, fair value   $ 11,900    
ESPP        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Nonvested award, cost not yet recognized, amount   $ 5,600    
Weighted average vesting period   10 months 24 days    
Expiration period   24 months    
Stock options        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Weighted average vesting period   2 years 3 months 18 days    
Granted (in shares)   263,200 13,158,430 12,199,200
Weighted average grant date stock fair value (in dollars per share)   $ 48.14 $ 15.94 $ 1.97
Unrecognized compensation costs   $ 70,100    
Restricted Stock        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Weighted average vesting period   8 months 12 days    
Unrecognized compensation costs   $ 300    
2021 Equity Incentive Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Common stock, capital shares reserved for future issuance (in shares)   39,000,000    
Increase in the number of shares available for future issuance (in shares)   39,000,000    
Increase in the number of shares available for future issuance as a percentage of outstanding stock   5.00%    
2021 Partner Studio Incentive Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Common stock, capital shares reserved for future issuance (in shares)   390,000    
2021 Partner Studio Incentive Plan | Unvested RSU        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award vesting period   4 years    
Employee Stock Purchase Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Expiration period   24 months    
Employee Stock Purchase Plan | Common Class A        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Increase in the number of shares available for future issuance as a percentage of outstanding stock   1.00%    
Maximum employee subscription rate   15.00%    
Purchase price of common stock, percent   85.00%    
Maximum number of shares per employee (in shares)   590    
Number of shares available for grant (in shares)   7,800,000    
Number of additional shares available for issuance (in shares)   7,800,000    
Shares purchased for award (in shares)   42,303    
2011 Equity Incentive Plan        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense   $ 1,200 $ 900 $ 0
2011 Equity Incentive Plan | Stock options        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Award vesting period   4 years    
Expiration period   10 years    
v3.22.0.1
Stock-based Compensation - Summary of Outstanding Restricted Stock Awards Activity (Details) - Restricted Stock Units - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Number of Restricted Stock Units    
Balance at beginning of period (in shares) 0  
Granted (in shares) 7,575,963  
Vested (in shares) (126,234)  
Cancelled (in shares) (126,325)  
Balance at end of period (in shares) 7,323,404  
Weighted Average Grant Date Fair Value    
Balance at beginning of period (in dollars per share) $ 0  
Granted (in dollars per share) 60.18  
Vested (in dollars per share) 62.15  
Cancelled (in dollars per share) 59.92  
Balance at end of period (in dollars per share) $ 60.15  
Aggregate Intrinsic Value, Balance $ 690,304 $ 0
v3.22.0.1
Stock-based Compensation - Summary of Weighted Average Assumptions Used (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average expected term 1 year 3 months    
Expected volatility 44.00%    
Risk-free interest rate 0.17%    
Dividend yield 0.00%    
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average expected term 5 years 2 months 15 days 5 years 11 months 8 days 6 years 18 days
Expected volatility 43.00% 39.00% 43.00%
Risk-free interest rate 0.48% 0.56% 1.91%
Dividend yield 0.00% 0.00% 0.00%
v3.22.0.1
Stock-based Compensation - Summary of Stock Options Activity Under the Plan (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Number of Options    
Balance at beginning of period (in shares) 28,889,524  
Granted (in shares) 263,200  
Exercised (in shares) (8,947,563)  
Forfeited (in shares) (1,411,457)  
Expired (in shares) (390,000)  
Balance at end of period (in shares) 18,403,704 28,889,524
Vested and exercisable (in shares) 12,030,363  
Vested and expected to vest (in shares) 16,696,145  
Weighted Average Exercise Price Per Share    
Balance at beginning of period (in dollars per share) $ 5.92  
Granted (in dollars per share) 27.03  
Exercised (in dollars per share) 5.40  
Forfeited (in dollars per share) 6.42  
Expired (in dollars per share) 7.45  
Balance at end of period (in dollars per share) 6.39 $ 5.92
Vested and exercisable (in dollars per share) 5.87  
Vested and expected to vest (in dollars per share) $ 6.63  
Additional Disclosures    
Weighted Average Remaining Contractual Term 7 years 10 months 24 days 8 years 9 months 18 days
Weighted Average Remaining Contractual Term , Vested and exercisable 7 years 9 months 18 days  
Weighted Average Remaining Contractual Term, Vested and expected to vest 8 years  
v3.22.0.1
Stock-based Compensation - Summary of Stock-based Payment Arrangement Expenses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 133,177 $ 62,387 $ 10,222
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 2,335 982 124
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 15,224 10,668 1,922
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 63,344 36,852 5,009
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 52,274 $ 13,885 $ 3,167
v3.22.0.1
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net income (loss) $ 35,446 $ (125,187) $ 119,040
Income attributable to convertible preferred stock (3,209) 0 (39,500)
Income attributable to options exercises by promissory notes (387) 0 (1,088)
Income attributable to unvested early exercised options (95) 0 (39)
Income attributable to unvested RSA's (52) 0 (2,037)
Net income (loss) attributable to common stock $ 31,703 $ (125,187) $ 76,376
Denominator:      
Weighted-average shares used in computing net income (loss) per share: Basic (in shares) 324,836,076 214,936,545 210,937,147
Net income (loss) per share attributable to common stock: Basic (in dollars per share) $ 0.10 $ (0.58) $ 0.36
Numerator:      
Net income (loss) $ 35,446 $ (125,187) $ 119,040
Income attributable to convertible preferred stock (3,058) 0 (39,329)
Income attributable to options exercises by promissory notes (369) 0 (1,083)
Income attributable to unvested early exercised options (91) 0 (39)
Income attributable to unvested RSA's (49) 0 (2,028)
Net income (loss) attributable to common stock $ 31,879 $ (125,187) $ 76,561
Denominator:      
Weighted-average shares used in computing net income (loss) per share: Basic (in shares) 324,836,076 214,936,545 210,937,147
Weighted-average dilutive stock options, RSUs, and convertible security (in shares) 17,927,556 0 1,428,282
Weighted-average shares used in computing net income (loss) per share: Diluted (in shares) 342,763,632 214,936,545 212,365,429
Net income (loss) per share attributable to common stock: Diluted (in dollars per share) $ 0.09 $ (0.58) $ 0.36
v3.22.0.1
Net Income (Loss) Per Share - Summary of Antidilutive Potential Common Shares (Details) - shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 4,091,075 139,124,963 126,226,359
Convertible preferred stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 0 109,090,908 109,090,908
Stock options exercised for promissory notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 2,884,999 8,022,499 5,760,000
Early exercised stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 487,000 19,800 11,337
Unvested RSAs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 181,737 1,236,771 3,924,414
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 0 20,754,985 7,439,700
Unvested RSU      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 291,093 0 0
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive potential common shares (in shares) 246,246 0 0
v3.22.0.1
Income Taxes - Summary of Net Income (Loss) Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. $ 193,161 $ (118,296) $ 149,797
Foreign (146,850) (17,410) (23,563)
Net income (loss) before income tax $ 46,311 $ (135,706) $ 126,234
v3.22.0.1
Income Taxes - Summary of Provision for Benefit from Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
Federal $ 64,585 $ 20,162 $ 23,703
State 10,234 4,087 1,888
Foreign 1,914 4,027 568
Total current 76,733 28,276 26,159
Deferred:      
Federal (52,162) (29,235) (720)
State (2,394) (4,800) (99)
Foreign (11,204) (4,013) (18,146)
Total deffered (65,760) (38,048) (18,965)
Total provision for (benefit from) income taxes $ 10,973 $ (9,772) $ 7,194
v3.22.0.1
Income Taxes - Summary of Reconciliation of Federal Statutory Income Tax Rate to the Effective Income Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Tax provision (benefit) at U.S. federal statutory rate $ 9,725 $ (28,498) $ 26,509
State income taxes, net of federal benefit 1,866 (1,137) 1,412
Foreign income taxed at different rates 10,563 8,710 2,887
Change in foreign deferred tax rate 0 (6,038) (17,143)
Stock-based compensation (8,807) 10,347 1,671
Foreign-derived intangible income (10,477) (3,518) (8,600)
Research and development credits (6,193) (2,561) (1,025)
Extinguishments of acquisition-related contingent consideration 0 12,237 0
Foreign Income Inclusion (2,622) 0 0
Change in valuation allowance 15,905 0 0
Other 1,013 686 1,483
Total provision for (benefit from) income taxes $ 10,973 $ (9,772) $ 7,194
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred tax liability associated with basis differences in discontinued operation $ 17.1    
Valuation allowance increase amount 18.3 $ 0.5 $ 0.0
Unrecognized tax benefits that would impact effective tax rate 13.6 13.0  
Interest and penalties related to unrecognized tax benefits $ 3.6 2.3 $ 0.7
Maximum      
Limitations on the amount of taxable income that can be offset by net operating loss carryforwards and tax credits Percentage of change in control in ownership 50.00%    
Not Subject to Expiration | California      
Tax credit carryforwards $ 9.5 4.8  
Tax Period Two Thousand And Thirty Seven | California      
Operating loss carryforwards net 8.8 9.2  
Tax Period Two Thousand Fourty | Texas Tax Authority      
Tax credit carryforwards 0.2 0.3  
Domestic Tax Authority | Capital Loss Carryforward      
Tax credit carryforwards 4.7    
Domestic Tax Authority | Not Subject to Expiration      
Operating loss carryforwards net 13.7 19.6  
Domestic Tax Authority | Tax Period Two Thousand Thirty Five      
Tax credit carryforwards $ 0.9 $ 0.9  
v3.22.0.1
Income Taxes - Summary of Current and Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Accrued expenses and reserves $ 6,374 $ 4,757
Stock-based compensation 14,651 1,955
Tax credit carryforwards 4,835 2,526
Net operating loss 12,042 3,787
Identified intangibles 0 8,996
Operating lease liability 16,622 20,551
Other comprehensive income 16,251 0
Foreign tax deduction 12,363 0
Other 2,247 (256)
Valuation allowance (18,842) (531)
Total deferred tax assets 66,543 41,785
Deferred tax liabilities:    
Depreciation and amortization (5,433) (6,857)
Identified intangibles (6,049) 0
Operating lease right-of-use assets (16,622) (20,345)
Total deferred tax liabilities (28,104) (27,202)
Net deferred tax assets $ 38,439 $ 14,583
v3.22.0.1
Income Taxes - Summary of Activity Related to the Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of year $ 14,401 $ 6,646 $ 2,858
Increases related to prior year positions 5,027 4,681 2,377
Increases related to current year positions 2,631 3,498 1,581
Decreases related to lapse of statutes (172) (424) (170)
Decreases related to settlements (3,431) 0 0
Balance at end of year $ 18,456 $ 14,401 $ 6,646
v3.22.0.1
Geographic Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property and equipment, net $ 63,608 $ 28,587
United States    
Property and equipment, net 25,681 27,942
Germany    
Property and equipment, net 22,872 11
Netherlands    
Property and equipment, net 14,265 0
All other countries    
Property and equipment, net $ 790 $ 634
v3.22.0.1
Related Party (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
promissory_note
shares
Mar. 31, 2021
USD ($)
Nov. 30, 2020
USD ($)
Related Party Transaction [Line Items]            
Accounts payable $ 258,220 $ 258,220 $ 147,275      
Fair value of the shares purchased       $ 14,000    
Interest rate       2.00%    
Repurchases of common stock from related parties financed by promissory notes   $ 0 0 $ 9,074    
Percentage of principal amount discounted       19.00%    
Debt instrument, discount amortization period   5 years        
Loss on debt extinguishment   $ 18,236 0 $ 0    
Payments of related party notes   $ 11,655 0 $ 0    
Secondary Offering            
Related Party Transaction [Line Items]            
Sale of stock, number of shares issued in transaction | shares 7,500,000          
Sale of stock issue price (in dollars per share) | $ / shares $ 83.00 $ 83.00        
Unsecured Debt            
Related Party Transaction [Line Items]            
Number of unsecured promissory notes | promissory_note       2    
Debt instrument, term       5 years    
Unsecured Debt | Issuance of First Unsecured Debt            
Related Party Transaction [Line Items]            
Long term note payable issued for shares repurchased       $ 10,000    
Unsecured Debt | Issuance of Second Unsecured Debt            
Related Party Transaction [Line Items]            
Long term note payable issued for shares repurchased       $ 1,200    
Chief Executive Officer | Common Class A            
Related Party Transaction [Line Items]            
Number of shares repurchased by the company | shares       2,475,000    
Director | Common Class A            
Related Party Transaction [Line Items]            
Number of shares repurchased by the company | shares       300,000    
Amended Revolving Credit Facility            
Related Party Transaction [Line Items]            
Debt instrument increase in the credit facility         $ 250,000 $ 150,000
KKR Capital Markets LLC | Secondary Offering            
Related Party Transaction [Line Items]            
Accounts payable $ 5,000 $ 5,000        
KKR Capital Markets LLC | Fifth Amendment Term Loan And Revolving Credit Facility | Affiliated Entity            
Related Party Transaction [Line Items]            
Debt issuance costs paid to related party   2,300 1,500 $ 2,000    
Chief Executive Officer And Board Member | Management | Share Purchases            
Related Party Transaction [Line Items]            
Payments of related party notes 11,700          
Chief Executive Officer And Board Member | Management | Unsecured Debt | Share Purchases            
Related Party Transaction [Line Items]            
Loss on debt extinguishment $ 1,400          
Mobile Game Developer | Affiliated Entity | Game Assignment and Revenue Share Agreement            
Related Party Transaction [Line Items]            
Payments for related party transaction   $ 700 $ 0      
v3.22.0.1
Subsequent Events (Details)
¥ in Millions
 1 Months Ended
Mar. 11, 2022
USD ($)
shares
Mar. 31, 2022
USD ($)
Mar. 31, 2022
CNY (¥)
Feb. 28, 2022
USD ($)
Jan. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
The Fund | Forecast            
Subsequent Event [Line Items]            
Investment company, committed capital   $ 47,500,000 ¥ 300.0      
Limited partnership agreement, term   7 years 7 years      
Limited partnership agreement, option to extend, term   2 years 2 years      
Mo Pub            
Subsequent Event [Line Items]            
Business acquisition, transaction costs           $ 1,600,000
Subsequent Event | Common Class A            
Subsequent Event [Line Items]            
Stock repurchase program, authorized amount       $ 750,000,000    
Treasury stock, shares, acquired | shares 893,556          
Treasury stock, common, value $ 43,700,000          
Subsequent Event | Mo Pub            
Subsequent Event [Line Items]            
Consideration paid         $ 1,000,000,000  
Subsequent Event | Wurl, Inc.            
Subsequent Event [Line Items]            
Total consideration       $ 430,000,000    
Business combination, consideration transferred, cash, percentage       55.00%    
Subsequent Event | Wurl, Inc. | Common Class A            
Subsequent Event [Line Items]            
Business combination, consideration transferred, equity interests issued and issuable, percentage       45.00%    
Business combination, consideration transferred, cash and equity interests issued and issuable, earnout       $ 600,000,000