AppLovin Announces Record Financial Results for the Fourth Quarter and Full-Year 2021
AppLovin Corporation (NASDAQ: APP) reported a strong fourth quarter and fiscal year ending December 31, 2021. Revenue surged 56% year-over-year to $793 million, with a 25% organic growth. For the full year, revenue reached $2.8 billion, a 92% increase. The Software Platform revenue soared 208% to $247 million, showcasing a robust demand. Net income improved to $31 million with a 4% margin, while Adjusted EBITDA rose 60% to $221 million. AppLovin raised its 2022 revenue outlook for its Software Platform to $1.35 - $1.50 billion, reflecting a growth rate of 100-123%.
- Revenue climbed 56% Y/Y to $793 million in Q4 2021.
- Software Platform revenue jumped 208% Y/Y to $247 million.
- Net income improved to $31 million from a loss of $19 million.
- Adjusted EBITDA grew 60% Y/Y to $221 million, with a margin of 28%.
- 2022 Software Platform revenue outlook raised to $1.35 - $1.50 billion.
- Net income margin remains low at 4% despite improvements.
- Adjustments in margin guidance reflect increased investment needs.
Raises Software Platform outlook for 2022 to
-
Revenue in 4Q21 grew
56% Y/Y to$793 million 25% Y/Y -
Revenue in 2021 grew +
92% Y/Y to$2.8 billion -
Software Platform revenue grew
208% Y/Y to$247 million 173% Y/Y -
Software Platform Enterprise Clients2 (SPEC) grew to a record 461, up
192% Y/Y -
Net income improved Y/Y to
$31 million 4% , up from a net loss of$19 million -
Adjusted EBITDA grew
60% Y/Y to$221 million 28%
“We continue to execute on our mission to build and grow the largest, most-effective platform for advertisers and publishers in the digital world,” said
Fourth Quarter 2021 Financial Summary and Highlights
(Note: All comparisons are versus 4Q20 and growth rates referenced are year-over-year unless otherwise noted; due to rounding, numbers presented may not add up precisely to the totals provided.)
-
Revenue grew
56% to$793 million 25% . -
Business Software Platform revenue was
$247 million 208% and organic growth1 of173% ; surpassed$1 billion December 2021 performance.-
Total Software Transaction Value (TSTV)2 was
$340 million $211 million -
Software Platform Enterprise Clients grew
192% to 461 and Net Dollar-Based Revenue Retention was204% 3.
-
Total Software Transaction Value (TSTV)2 was
-
Apps revenue grew
27% to$547 million -
Business Apps revenue grew to
$185 million 5% . -
Consumer Apps revenue grew to
$362 million 42% , with 2.7 million MAPs2 in the quarter.
-
Business Apps revenue grew to
-
Net income improved to
$31 million 4% , up from a net loss of$19 million -
Adjusted EBITDA grew
60% to$221 million 28% .
Full-Year 2021 Financial Summary and Highlights
(Note: All comparisons are versus 2020 and growth rates referenced are year-over-year; due to rounding, numbers presented may not add up precisely to the totals provided.)
-
Revenue grew
92% to$2.8 billion 70% . -
Business Software Platform revenue was
$674 million 225% and organic growth1 of188% . -
Apps revenue grew
70% to$2.1 billion -
Business Apps revenue grew to
$661 million 31% . -
Consumer Apps revenue grew to
$1.5 billion 97% .
-
Business Apps revenue grew to
-
Net income improved to
$35 million 1% , from a net loss of$126 million -
Adjusted EBITDA grew
110% to$727 million 26% .
Financial Outlook
|
Full-Year |
|
Y/Y |
|
|
2022 |
|
Growth |
|
Software Platform |
|
|
+100 |
|
Apps |
|
|
+4 |
|
Total Revenue |
|
|
+27 |
- Expect our Adjusted EBITDA4 margin in 2022 to be in the high-20s, up compared to 2021, subject to additional investments for growth.
(1) |
Organic revenue and revenue growth represents revenue excluding revenue from Adjust and, with respect to Apps, only including revenue growth from existing Apps owned at the end of the prior period and newly developed Apps from existing Owned and |
|
(2) |
SPEC, TSTV, and MAPs are key metrics. Refer to Key Metrics for definition. |
|
(3) |
We measure Net Dollar-Based Revenue Retention Rate for the three months ended |
|
(4) |
We have not provided the forward-looking net income and net margin guidance for forward-looking non-GAAP Adjusted EBITDA guidance or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of this measure to its corresponding GAAP equivalent is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided a reconciliation of other GAAP to non-GAAP metrics in tables at the end of this press release. |
Webcast and Conference Calls
The live audio webcast may be accessed on the Company’s investor relations website. The conference call can be accessed by dialing 1-877-407-9716 for domestic callers or 1-201-493-6779 for international callers. A replay of the call via webcast will be available at: https://investors.AppLovin.com until
About
AppLovin’s leading marketing software provides developers with a powerful, integrated set of solutions to grow their businesses.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding our future financial performance, including our expected financial results, guidance and growth prospects; quotes of management; our expectations regarding the connected TV market; and our expectations regarding our acquisitions, including the impact of our MoPub acquisition. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, that could cause actual results to differ materially from those projected. These risks include our inability to forecast our business due to our limited operating history, fluctuations in our results of operations, the competitive mobile app ecosystem, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended
Non-GAAP Financial Measures
To supplement our financial information presented in accordance with generally accepted accounting principles in
We define Adjusted EBITDA for a particular period as net income (loss) before interest expense and loss on settlement of debt, other (income) expense (excluding certain recurring items), net, provision for (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gains) losses, stock-based compensation expense, acquisition-related expense and transaction bonuses, customer acquisition bonuses, loss (gain) on extinguishments of acquisition-related contingent consideration, lease modification and abandonment of leasehold improvements, and change in the fair value of contingent consideration. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period. We define non-GAAP costs and expenses as total costs and expenses adjusted to exclude stock-based compensation expense, amortization expense related to acquired intangibles and acquisition-related expense and transaction bonuses
We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.
Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP costs and expenses are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP costs and expenses are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. In addition, these measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance. We use Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP costs and expenses in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Key Metrics
We review the following key metrics on a regular basis to evaluate the health of our business, identify trends affecting our performance, prepare financial projections, and make strategic decisions. As a result of our continued focus on our Software Platform, we plan to phase out several metrics including Enterprise Clients, Revenue Per Enterprise Client and Net Dollar-Based Retention Rate for Enterprise Clients beginning with the quarter ended
Annual Key Metrics
Enterprise Clients. We focus on the number of Enterprise Clients, which are third-party business clients from whom we have collected greater than
Revenue Per Enterprise Client (RPEC). We define RPEC as (i) the total revenue derived from our Enterprise Clients in a 12-month period, divided by (ii) Enterprise Clients as of the end of that same period. RPEC shows how efficiently we are monetizing each Enterprise Client.
The following table shows our Enterprise Clients as of
|
LTM 4Q 2021 |
LTM 4Q 2020 |
|||||
Enterprise Clients |
407 |
172 |
|||||
RPEC (thousands) |
|
|
|||||
Quarterly Key Metrics
Total Software Transaction Value. Business Software Platform revenue is from third-party clients using our software platform. We do not recognize revenue from our own spend on our software platform. Therefore, we use TSTV to measure the scale and growth rates of our software platform as it reflects the total value on our software platform including our first-party studios as though they were stand-alone businesses. Below is a reconciliation of our Business Software Platform Revenue to Total Software Transaction Value.
($ in thousands) |
4Q 2021 |
4Q 2020 |
||
Business Software Platform Revenue |
|
|
||
Software Platform fee collected from AppLovin Apps |
|
|
||
Total Software Transaction Value |
|
|
Software Platform Enterprise Clients. We focus on the number of Software Platform Enterprise Clients, which are third-party business clients from whom we have collected greater than
Revenue Per Software Platform Enterprise Client (Revenue per SPEC). We define Revenue per SPEC as (i) the total revenue derived from our Software Platform Enterprise Clients in a three-month period, divided by (ii) Software Platform Enterprise Clients as of the end of that same period. Revenue per SPEC shows how efficiently we are monetizing each SPEC. We expect to increase Revenue per SPEC over time as we enhance our Software Platform and Apps
The following table shows our Software Platform Enterprise Clients as of
|
4Q 2021 |
|
3Q 2021 |
|
2Q 2021 |
|
1Q 2021 |
|
4Q
|
|
Software Platform Enterprise Clients |
461 |
|
449 |
|
366 |
|
193 |
|
158 |
|
Revenue per SPEC (thousands) |
|
|
|
|
|
|
|
|
|
Update to our Key Metrics
Beginning with 2Q22, the revenue measurement period used to determine the number of SPECs in a period will be updated to include clients from whom we have collected greater than
|
Metric |
Revenue Composition |
Revenue
|
Revenue Threshold |
Final Disclosure Period |
4Q
|
3Q
|
2Q
|
1Q
|
4Q
|
Current Calculations |
SPEC |
Software Platform Revenue |
Annualized Quarterly |
|
Quarter ended |
461 |
449 |
366 |
193 |
158 |
Revenue per SPEC |
Quarter ended |
|
|
|
|
|
||||
Updated Calculations |
SPEC |
Software Platform Revenue |
Trailing
|
|
N/A |
380 |
292 |
208 |
156 |
142 |
Revenue per SPEC |
N/A |
|
|
|
|
|
Monthly Active Payers (MAPs). We define a MAP as a unique mobile device active on one of our apps in a month that completed at least one IAP during that time period. A consumer who makes IAPs within two separate apps on the same mobile device in a monthly period will be counted as two MAPs. MAPs for a particular time period longer than one month are the average MAPs for each month during that period. We estimate the number of MAPs by aggregating certain data from third-party attribution partners. Some of our apps do not utilize such third-party attribution partners, and therefore, our MAPs figure for any period does not capture every user that completed an IAP on our apps. We estimate that our counted MAPs generated approximately
Average Revenue Per Monthly Active Payer (ARPMAP). We define ARPMAP as (i) the total Consumer Revenue derived from our apps in a monthly period, divided by (ii) MAPs in that same period. ARPMAP for a particular time period longer than one month is the average ARPMAP for each month during that period. ARPMAP shows how efficiently we are monetizing each MAP. We expect to increase ARPMAP over time as we enhance the monetization of our apps.
|
4Q 2021 |
|
4Q 2020 |
||||
Monthly Active Payers (millions) |
2.7 |
|
2.1 |
||||
Average Revenue per Monthly Active Payer (ARPMAP) |
|
|
|
||||
Our key metrics are not based on any standardized industry methodology and are not necessarily calculated in the same manner or comparable to similarly titled measures presented by other companies. Similarly, our key metrics may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that we use to calculate TSTV, MAP, and ARPMAP are based on internal data. While these numbers are based on what we believe to be reasonable judgements and estimates for the applicable period of measurement, there are inherent challenges in measuring usage and engagement. We regularly review and may adjust our processes for calculating our internal metrics to improve their accuracy.
Consolidated Balance Sheets (in thousands, except for share and per share data) |
|||||||
|
|
|
|
||||
Assets |
(unaudited) |
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,520,504 |
|
|
$ |
317,235 |
|
Restricted cash equivalents |
|
1,050,000 |
|
|
|
— |
|
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 |
|
|
|
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 |
|
Liabilities, redeemable noncontrolling interest, and stockholders’ equity (deficit) |
|
|
|
||||
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 |
|
|
|
— |
|
Other non-current liabilities |
|
112,820 |
|
|
|
59,032 |
|
Total liabilities |
|
4,025,288 |
|
|
|
2,312,829 |
|
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, nil and 109,090,908 shares outstanding at |
|
— |
|
|
|
399,589 |
|
Class A, Class B and Class F common stock, |
|
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 |
|
Consolidated Statements of Operations (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(unaudited) |
|
(unaudited) |
|
|
||||||||||
Revenue |
$ |
793,470 |
|
|
$ |
509,837 |
|
|
$ |
2,793,104 |
|
|
$ |
1,451,086 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
265,129 |
|
|
|
198,014 |
|
|
|
988,095 |
|
|
|
555,578 |
|
Sales and marketing |
|
313,692 |
|
|
|
210,796 |
|
|
|
1,129,892 |
|
|
|
627,796 |
|
Research and development |
|
119,541 |
|
|
|
80,702 |
|
|
|
366,402 |
|
|
|
180,652 |
|
General and administrative |
|
36,583 |
|
|
|
25,175 |
|
|
|
158,699 |
|
|
|
66,431 |
|
Lease modification and abandonment of leasehold improvements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,851 |
|
Extinguishments of acquisition-related contingent consideration |
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
74,820 |
|
Total costs and expenses |
|
734,945 |
|
|
|
514,795 |
|
|
|
2,643,088 |
|
|
|
1,513,128 |
|
Income (loss) from operations |
|
58,525 |
|
|
|
(4,958 |
) |
|
|
150,016 |
|
|
|
(62,042 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense and loss on settlement of debt |
|
(30,374 |
) |
|
|
(20,325 |
) |
|
|
(103,170 |
) |
|
|
(77,873 |
) |
Other income (expense), net |
|
462 |
|
|
|
(1,138 |
) |
|
|
(535 |
) |
|
|
4,209 |
|
Total other income (expense) |
|
(29,912 |
) |
|
|
(21,463 |
) |
|
|
(103,705 |
) |
|
|
(73,664 |
) |
Income (loss) before income taxes |
|
28,613 |
|
|
|
(26,421 |
) |
|
|
46,311 |
|
|
|
(135,706 |
) |
Provision for (benefit from) income taxes |
|
(2,794 |
) |
|
|
(7,448 |
) |
|
|
10,973 |
|
|
|
(9,772 |
) |
Net income (loss) |
|
31,407 |
|
|
|
(18,973 |
) |
|
|
35,338 |
|
|
|
(125,934 |
) |
Add: Net loss (income) attributable to noncontrolling interest |
|
(41 |
) |
|
|
201 |
|
|
|
108 |
|
|
|
747 |
|
Net income (loss) attributable to |
|
31,366 |
|
|
|
(18,772 |
) |
|
|
35,446 |
|
|
|
(125,187 |
) |
Less: Net income attributable to participating securities |
|
(312 |
) |
|
|
— |
|
|
|
(3,743 |
) |
|
|
— |
|
Net income (loss) attributable to common stock—Basic |
|
31,054 |
|
|
|
(18,772 |
) |
|
|
31,703 |
|
|
|
(125,187 |
) |
Net income (loss) attributable to common stock—Diluted |
$ |
31,068 |
|
|
$ |
(18,772 |
) |
|
$ |
31,879 |
|
|
$ |
(125,187 |
) |
Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.08 |
|
|
$ |
(0.09 |
) |
|
$ |
0.10 |
|
|
$ |
(0.58 |
) |
Diluted |
$ |
0.08 |
|
|
$ |
(0.09 |
) |
|
$ |
0.09 |
|
|
$ |
(0.58 |
) |
Weighted average common shares used to compute net
|
|
|
|
|
|
|
|
||||||||
Basic |
|
370,779,521 |
|
|
|
220,709,256 |
|
|
|
324,836,076 |
|
|
|
214,936,545 |
|
Diluted |
|
388,302,231 |
|
|
|
220,709,256 |
|
|
|
342,763,632 |
|
|
|
214,936,545 |
|
Consolidated Statements of Cash Flows (in thousands) |
|||||||
|
Years Ended |
||||||
|
2021 |
|
2020 |
||||
Operating Activities |
(unaudited) |
|
|
||||
Net income (loss) |
$ |
35,338 |
|
|
$ |
(125,934 |
) |
Adjustments to reconcile net income (loss) to operating activities: |
|
|
|
||||
Amortization, depreciation and write-offs |
|
431,063 |
|
|
|
254,951 |
|
Amortization of debt issuance costs and discount |
|
12,825 |
|
|
|
8,152 |
|
Stock-based compensation |
|
133,177 |
|
|
|
62,387 |
|
Change in operating right-of-use asset |
|
26,313 |
|
|
|
9,333 |
|
Lease modification and abandonment of leasehold improvements |
|
— |
|
|
|
7,851 |
|
Loss on extinguishments of acquisition related contingent consideration |
|
— |
|
|
|
74,820 |
|
Change in fair value of contingent consideration |
|
(230 |
) |
|
|
442 |
|
Loss on settlement of debt |
|
18,236 |
|
|
|
— |
|
Net unrealized gains on fair value remeasurement of financial instruments |
|
(8,841 |
) |
|
|
(4,180 |
) |
Net loss (gain) on foreign currency remeasurement |
|
(1,734 |
) |
|
|
2,097 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(201,948 |
) |
|
|
(113,234 |
) |
Prepaid expenses and other current assets |
|
(97,324 |
) |
|
|
(13,289 |
) |
Other assets |
|
(59,505 |
) |
|
|
(19,092 |
) |
Accounts payable |
|
98,612 |
|
|
|
49,120 |
|
Operating lease liabilities |
|
(26,854 |
) |
|
|
(8,812 |
) |
Accrued and other liabilities |
|
16,630 |
|
|
|
2,783 |
|
Deferred revenue |
|
(13,907 |
) |
|
|
35,488 |
|
Net cash provided by operating activities |
|
361,851 |
|
|
|
222,883 |
|
Investing Activities |
|
|
|
||||
Purchase of property and equipment |
|
(1,390 |
) |
|
|
(3,241 |
) |
Acquisitions, net of cash acquired |
|
(1,206,482 |
) |
|
|
(674,650 |
) |
Purchase of non-marketable investments and other |
|
(15,000 |
) |
|
|
(2,000 |
) |
Proceeds from other investing activities |
|
12,009 |
|
|
|
— |
|
Capitalized software development costs |
|
(4,067 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(1,214,930 |
) |
|
|
(679,891 |
) |
Financing Activities |
|
|
|
||||
Proceeds from issuance of common stock in initial public offering,
|
|
1,745,228 |
|
|
|
— |
|
Proceeds from debt issuance, net of issuance costs |
|
2,329,059 |
|
|
|
481,273 |
|
Payments of debt principal |
|
(719,810 |
) |
|
|
(64,295 |
) |
Payments of finance leases |
|
(15,271 |
) |
|
|
(9,708 |
) |
Proceeds from exercise of stock options |
|
31,156 |
|
|
|
2,303 |
|
Proceeds from issuance of common stock |
|
— |
|
|
|
9,318 |
|
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan |
|
2,877 |
|
|
|
— |
|
Payments of deferred acquisition costs |
|
(234,068 |
) |
|
|
(17,586 |
) |
Payments of licensed asset obligation |
|
(17,970 |
) |
|
|
(18,940 |
) |
Payments of related party notes |
|
(11,655 |
) |
|
|
— |
|
Repurchases of common stock |
|
— |
|
|
|
(1,766 |
) |
Payments of deferred IPO costs |
|
— |
|
|
|
(2,744 |
) |
Net cash provided by financing activities |
|
3,109,546 |
|
|
|
377,855 |
|
Effect of foreign exchange rate on cash, cash equivalents and restricted cash equivalents |
|
(3,198 |
) |
|
|
141 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash equivalents |
|
2,253,269 |
|
|
|
(79,012 |
) |
Cash, cash equivalents and restricted cash equivalents at beginning of the period |
|
317,235 |
|
|
|
396,247 |
|
Cash, cash equivalents and restricted cash equivalents at end of the period |
$ |
2,570,504 |
|
|
$ |
317,235 |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) |
|||||||||||||||
The following table provides our Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of Net income (loss) to Adjusted EBITDA: |
|||||||||||||||
|
Three Months Ended
|
|
Twelve months ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(unaudited) |
|
(unaudited) |
|
|
||||||||||
Revenue |
$ |
793,470 |
|
|
$ |
509,837 |
|
|
$ |
2,793,104 |
|
|
$ |
1,451,086 |
|
Net income (loss) |
$ |
31,407 |
|
|
$ |
(18,973 |
) |
|
$ |
35,338 |
|
|
$ |
(125,934 |
) |
|
|
4.0 |
% |
|
|
(3.7 |
) % |
|
|
1.3 |
% |
|
|
(8.7 |
) % |
Interest expense and loss on settlement of debt |
|
30,374 |
|
|
|
20,325 |
|
|
|
103,170 |
|
|
|
77,873 |
|
Other (income) / expense, net1 |
|
(693 |
) |
|
|
(2 |
) |
|
|
(7,545 |
) |
|
|
(6,183 |
) |
Provision for (benefit from) income taxes |
|
(2,794 |
) |
|
|
(7,448 |
) |
|
|
10,973 |
|
|
|
(9,772 |
) |
Amortization, depreciation and write-offs |
|
115,654 |
|
|
|
97,728 |
|
|
|
431,063 |
|
|
|
254,951 |
|
Non-operating foreign exchange (gain) losses |
|
(27 |
) |
|
|
479 |
|
|
|
(1,537 |
) |
|
|
1,210 |
|
Stock-based compensation2 |
|
41,349 |
|
|
|
43,025 |
|
|
|
135,469 |
|
|
|
62,387 |
|
Acquisition-related expense and transaction bonus |
|
2,827 |
|
|
|
2,217 |
|
|
|
16,887 |
|
|
|
7,850 |
|
Customer acquisition bonuses3 |
|
3,227 |
|
|
|
— |
|
|
|
3,227 |
|
|
|
— |
|
Lease modification and abandonment of leasehold improvements |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,851 |
|
Loss on extinguishments of acquisition related contingent consideration |
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
74,820 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
442 |
|
|
|
(230 |
) |
|
|
442 |
|
Total adjustments |
|
189,917 |
|
|
|
156,874 |
|
|
|
691,477 |
|
|
|
471,429 |
|
Adjusted EBITDA |
|
221,324 |
|
|
|
137,901 |
|
|
|
726,815 |
|
|
|
345,495 |
|
Adjusted EBITDA Margin |
|
27.9 |
% |
|
|
27.0 |
% |
|
|
26.0 |
% |
|
|
23.8 |
% |
______________________________________________ |
1Excludes recurring operational foreign exchange gains and losses and write-off of an investment that is included in Amortization, depreciation and write-offs line item above. |
2The twelve months ended |
3 In association with the MoPub acquisition, we incurred certain costs to incentivize publishers to migrate to our MAX mediation solution, including existing publishers of MoPub as well as publishers on other competitor offerings. We have not historically incurred significant publisher migration costs, nor do we currently intend to incur significant publisher migration costs in the future. As such, we have removed the impact of these costs from Adjusted EBITDA. |
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in millions) |
||||
4Q 2021 |
4Q 2020 |
|||
Revenue |
793.5 |
|
509.8 |
|
|
|
|
||
GAAP cost of revenue |
265.1 |
|
198.0 |
|
Amortization expense related to acquired intangibles |
(100.3 |
) |
(90.7 |
) |
Stock-based compensation expense |
(0.8 |
) |
(0.8 |
) |
Non-GAAP cost of revenue |
164.0 |
|
106.6 |
|
Non-GAAP cost of revenue as a % of total revenue |
20.7 |
% |
20.9 |
% |
GAAP sales & marketing expense |
313.7 |
|
210.8 |
|
Amortization expense related to acquired intangibles |
(6.7 |
) |
(3.1 |
) |
Stock-based compensation expense |
(6.4 |
) |
(7.9 |
) |
Non-GAAP sales & marketing expense |
300.6 |
|
199.8 |
|
Non-GAAP sales & marketing expense as a % of total revenue |
37.9 |
% |
39.2 |
% |
GAAP research & development expense |
119.5 |
|
80.7 |
|
Stock-based compensation expense |
(23.2 |
) |
(26.2 |
) |
Non-GAAP research & development expense |
96.3 |
|
54.5 |
|
Non-GAAP research & development expense as a % of total revenue |
12.1 |
% |
10.7 |
% |
GAAP general & administration expense |
36.6 |
|
25.2 |
|
Stock-based compensation expense |
(10.9 |
) |
(8.2 |
) |
Acquisition-related expense & transaction bonus |
(2.8 |
) |
(2.2 |
) |
Non-GAAP general & administration expense |
22.8 |
|
14.7 |
|
Non-GAAP general & administration expense as a % of total revenue |
2.9 |
% |
2.9 |
% |
Source:
View source version on businesswire.com: https://www.businesswire.com/news/home/20220216005467/en/
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