AppLovin Announces Record Financial Results for the Fourth Quarter and Full-Year 2021|||

Raises Software Platform outlook for 2022 to $1.35 – $one.50 billion

  • Revenue in 4Q21 grew 56% Y/Y to $793 meg, Organic revenueone
    increased 25% Y/Y
  • Revenue in 2021 grew +92% Y/Y to $2.8 billion
  • Software Platform revenue grew 208% Y/Y to $247 million, Organic growthone
    was 173% Y/Y
  • Software Platform Enterprise Clients2
    (SPEC) grew to a record 461, up 192% Y/Y
  • Net income improved Y/Y to $31 meg, a net margin of iv%, upwards from a internet loss of $19 million
  • Adjusted EBITDA grew threescore% Y/Y to $221 million and Adjusted EBITDA margin improved to 28%

PALO ALTO, Calif.–(BUSINESS WIRE)–AppLovin Corporation (NASDAQ: APP) (“AppLovin” or “we”), a leading marketing platform, today announced financial results for the 4th quarter and fiscal twelvemonth ended Dec 31, 2021 and posted a letter to its shareholders on its investor relations website.

“We proceed to execute on our mission to build and grow the largest, most-effective platform for advertisers and publishers in the digital world,” said Adam Foroughi, CEO and co-founder of AppLovin. “More advertisers and developers than always are leveraging our platform to help abound their concern and nosotros believe the integration of MoPub in 2022 will bulldoze further growth in our Software Platform business organisation.”

Herald Chen, CFO of AppLovin said, “We delivered record quarterly revenue and Adapted EBITDA in 4Q21 with +208%
Y/Y growth for our Software Platform, a testament to the powerful combination of our machine learning (ML)-based software and our scaled offset-political party data. As a result of the incredible momentum in our business exiting 2021 and our fantastic start to 1Q22, we are meaningfully raising our outlook for Software Platform revenue in 2022 to $ane.425 billion at the midpoint — a +111% Y/Y growth rate.”

Fourth Quarter 2021 Financial Summary and Highlights

(Notation: All comparisons are versus 4Q20 and growth rates referenced are yr-over-year unless otherwise noted; due to rounding, numbers presented may not add together upwardly precisely to the totals provided.)

  • Revenue
    grew 56% to $793 million with organic growth1
    of 25%.
  • Business Software Platform
    revenue was $247 million, an increase of 208% and organic growthi
    of 173%; surpassed $i billion annual run-rate Software Platform acquirement based on December 2021 performance.

    • Total Software Transaction Value (TSTV)
      2
      was $340 one thousand thousand, an increase of $211 million.
    • Software Platform Enterprise Clients
      grew 192% to 461 and Net Dollar-Based Revenue Retentivity was 204%3.
  • Apps acquirement
    grew 27% to $547 one thousand thousand.

    • Business Apps acquirement grew to $185 meg, an increase of five%.
    • Consumer Apps revenue grew to $362 one thousand thousand, an increase of 42%, with 2.7 million MAPs2
      in the quarter.
  • Net income
    improved to $31 million, a net margin of 4%, upwardly from a cyberspace loss of $19 one thousand thousand.
  • Adjusted EBITDA
    grew threescore% to $221 1000000 and Adjusted EBITDA margin improved to 28%.

Full-Yr 2021 Fiscal 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 $two.viii billion with organic growthone
    of 70%.
  • Concern Software Platform
    revenue was $674 million, an increase of 225% and organic growthone
    of 188%.
  • Apps revenue
    grew 70% to $2.1 billion.

    • Business concern Apps acquirement grew to $661 meg, an increase of 31%.
    • Consumer Apps acquirement grew to $one.5 billion, an increase of 97%.
  • Net income
    improved to $35 million, a internet margin of 1%, from a internet loss of $126 meg.
  • Adapted EBITDA
    grew 110% to $727 million and Adjusted EBITDA margin improved to 26%.

Financial Outlook

Full-Year

Y/Y

2022

Growth

Software Platform

$i.350 – $ 1.500 Billion

+100-123%

Apps

$ii.200 – $ 2.350 Billion

+iv-11%

Total Revenue

$three.550 – $three.850 Billion

+27-38%

  • Expect our Adapted EBITDA4
    margin in 2022 to exist in the high-20s, up compared to 2021, subject to additional investments for growth.

(1)

Organic revenue and revenue growth represents acquirement excluding revenue from Adjust and, with respect to Apps, only including acquirement growth from existing Apps endemic at the end of the prior catamenia and newly developed Apps from existing Owned and Partner Studios at the terminate of the prior catamenia.

(2)

SPEC, TSTV, and MAPs are primal metrics. Refer to Key Metrics for definition.

(3)

We measure Net Dollar-Based Revenue Retention Rate for the iii months ended December 31, 2021 for our Software Platform Enterprise Clients equally electric current menstruation revenue divided past prior period revenue. Prior flow revenue is measured as acquirement for the 3 months ended December 31, 2020 from our Software Platform Enterprise Clients equally of December 31, 2020. Electric current menstruation acquirement is revenue for the 3 months concluded Dec 31, 2021 from our Software Platform Enterprise Clients as of December 31, 2020.

(4)

We take not provided the forwards-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 out to its corresponding GAAP equivalent is non available without unreasonable effort. However, information technology is important to note that material changes to reconciling items could take a pregnant upshot on future GAAP results. We take provided a reconciliation of other GAAP to non-GAAP metrics in tables at the stop of this press release.

Webcast and Conference Calls

AppLovin will host a webcast and conference call today at two:00 PM PT / 5:00 PM ET, during which management will discuss 4th quarter and fiscal yr 2021 results and provide commentary on business organisation operation. A question-and-answer session will follow the prepared remarks.

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The live sound webcast may be accessed on the Company’s investor relations website. The conference call can be accessed by dialing i-877-407-9716 for domestic callers or one-201-493-6779 for international callers. A replay of the call via webcast will be available at: https://investors.AppLovin.com until February 23, 2022.

About AppLovin

AppLovin’s leading marketing software provides developers with a powerful, integrated set of solutions to grow their businesses. AppLovin enables developers to market, monetize, analyze and publish their apps. The company’due south starting time party content includes more than than 350+ popular, engaging apps and its technology brings that content to millions of users around the world. AppLovin is headquartered in Palo Alto, California with several offices globally.

Forward-Looking Statements

This press release contains forward-looking statements within the significant of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Human action of 1934. Forrad-looking statements mostly relate to futurity events or our future fiscal or operating operation. In some cases, y’all tin can identify forrard-looking statements considering they contain words such as “may,” “will,” “should,” “expect,” “programme,” “anticipate,” “going to,” “could,” “intend,” “target,” “projection,” “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, merely are not limited to, statements regarding our future fiscal performance, including our expected fiscal results, guidance and growth prospects; quotes of management; our expectations regarding the continued Tv set market; and our expectations regarding our acquisitions, including the impact of our MoPub acquisition. Our expectations and behavior 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 concern due to our express operating history, fluctuations in our results of operations, the competitive mobile app ecosystem, and our disability to adapt to emerging technologies and business organisation models. The forward-looking statements independent in this press release are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form x-Q for the fiscal quarter ended September 30, 2021. Boosted information volition also be fix along in our Annual Report on Course 10-K for the fiscal year ended December 31, 2021. The forrard-looking statements in this printing release are based on information available to united states every bit of the engagement hereof, and nosotros disclaim any obligation to update any forward-looking statements, except as required by police.

Non-GAAP Fiscal Measures

To supplement our financial data presented in accordance with generally accepted accounting principles in the Usa (“GAAP”), this printing release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP costs and expenses. A reconciliation of each such not-GAAP financial measure out to the almost directly comparable GAAP measure tin be plant below.

We ascertain Adapted EBITDA for a particular catamenia every bit net income (loss) before involvement expense and loss on settlement of debt, other (income) expense (excluding sure recurring items), internet, provision for (benefit from) income taxes, acquittal, depreciation and write-offs and as further adjusted for not-operating foreign exchange (gains) losses, stock-based compensation expense, acquisition-related expense and transaction bonuses, client acquisition bonuses, loss (proceeds) on extinguishments of acquisition-related contingent consideration, lease modification and abandonment of leasehold improvements, and modify in the fair value of contingent consideration. We define Adapted EBITDA margin as Adjusted EBITDA divided past acquirement for the aforementioned period. Nosotros ascertain non-GAAP costs and expenses every bit total costs and expenses adjusted to exclude stock-based compensation expense, amortization expense related to acquired intangibles and acquisition-related expense and transaction bonuses

Nosotros believe that the presentation of these non-GAAP fiscal measures provides useful information to investors regarding our results of operations and operating operation, as they are like to measures reported by our public competitors and are regularly used past securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.

Adjusted EBITDA, Adapted EBITDA margin, and not-GAAP costs and expenses are cardinal measures we use to appraise our fiscal performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA, Adjusted EBITDA margin, and not-GAAP costs and expenses are helpful to investors, analysts, and other interested parties because they tin can assist in providing a more consequent and comparable overview of our operations across our historical financial periods. In addition, these measures are frequently used past analysts, investors, and other interested parties to evaluate and assess functioning. Nosotros utilise Adjusted EBITDA, Adapted EBITDA margin, and non-GAAP costs and expenses in conjunction with GAAP measures equally part of our overall cess of our functioning, including the preparation of our annual operating upkeep and quarterly forecasts, to evaluate the effectiveness of our business concern strategies, and to communicate with our board of directors apropos our fiscal operation. These measures have sure limitations in that they practice non include the bear on 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 non publish these or similar metrics. Thus, our non-GAAP fiscal measures should be considered in addition to, non as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

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Primal Metrics

We review the following key metrics on a regular footing to evaluate the wellness of our business concern, place trends affecting our performance, prepare financial projections, and make strategic decisions. Every bit a result of our continued focus on our Software Platform, nosotros plan to phase out several metrics including Enterprise Clients, Revenue Per Enterprise Customer and Internet Dollar-Based Retention Charge per unit for Enterprise Clients start with the quarter ended March 31, 2022 in favor of like software-focused Key Metrics. See “Update to our Key Metrics” below for further details.

Annual Cardinal Metrics

Enterprise Clients.
We focus on the number of Enterprise Clients, which are 3rd-political party business clients from whom nosotros have collected greater than $125,000 of revenue in the trailing 12 months to a given date. Enterprise Clients generate the vast majority of our Business Revenue and Business concern Acquirement growth.

Revenue Per Enterprise Customer (RPEC).
Nosotros ascertain RPEC as (i) the total revenue derived from our Enterprise Clients in a 12-calendar month menstruation, divided past (ii) Enterprise Clients as of the end of that same catamenia. RPEC shows how efficiently we are monetizing each Enterprise Customer.

The following table shows our Enterprise Clients as of Dec 31, 2021 and 2020, and our RPEC for the 12 months ended December 31, 2021 and 2020.

LTM

4Q 2021

LTM

4Q 2020

Enterprise Clients

407

172

RPEC (thousands)

$3,146

$4,081

Quarterly Central Metrics

Total Software Transaction Value.
Business organization Software Platform revenue is from third-party clients using our software platform. We practise not recognize revenue from our own spend on our software platform. Therefore, we employ TSTV to mensurate the calibration and growth rates of our software platform every bit it reflects the total value on our software platform including our first-party studios every bit though they were stand-alone businesses. Below is a reconciliation of our Business organisation Software Platform Revenue to Total Software Transaction Value.

($ in thousands)

4Q 2021

4Q 2020

Business Software Platform Revenue

$246,562

$80,023

Software Platform fee collected from AppLovin Apps

$93,088

$48,333

Total Software Transaction Value

$339,650

$128,356

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 $31,250 of revenue in the 3 months to a given date, equating to an annual run-rate of $125,000 in acquirement. Software Platform Enterprise Clients generate the vast majority of our Business organisation Revenue – Software Platform and Concern Revenue – Software Platform growth.

Acquirement Per Software Platform Enterprise Client (Revenue per SPEC).
We define Acquirement per SPEC as (i) the full acquirement derived from our Software Platform Enterprise Clients in a iii-month flow, divided by (ii) Software Platform Enterprise Clients as of the end of that aforementioned catamenia. Revenue per SPEC shows how efficiently we are monetizing each SPEC. Nosotros expect to increase Revenue per SPEC over time as we raise our Software Platform and Apps

The following table shows our Software Platform Enterprise Clients equally of Dec 31, September xxx, 2021, June xxx, 2021, March 31, 2021, and December 31, 2020.

4Q

2021

3Q

2021

2Q

2021

1Q

2021

4Q

2020

Software Platform Enterprise Clients

461

449

366

193

158

Acquirement per SPEC (thousands)

$503

$398

$364

$453

$500

Update to our Key Metrics

First with 2Q22, the revenue measurement period used to determine the number of SPECs in a menses will be updated to include clients from whom we have collected greater than $125,000 in Software Platform acquirement over the trailing 12 months. The current definition of SPEC included tertiary-party clients who had more than $31,250 in Software Platform revenue for the prior three months. We believe this modify in acquirement measurement period will provide boosted information regarding the scale and growth of our more-mature clients. Going forward, when Net Dollar-Based Revenue Retention (“NDBRR”) measures are provided, we will also summate such measures using the updated definition of SPECs. The table beneath shows our SPEC and Revenue per SPEC for the last five quarters under the electric current calculations every bit well equally the updated calculations.

Metric

Revenue Composition

Revenue

Measurement

Period

Revenue Threshold

Final Disclosure Period

4Q

2021

3Q

2021

2Q

2021

1Q

2021

4Q

2020

Current Calculations

SPEC

Software Platform Revenue

Annualized Quarterly

$31,250

per Quarter ($125,000

per Yr)

Quarter concluded March 31, 2022

461

449

366

193

158

Revenue per SPEC

Quarter concluded March 31, 2022

$503

$398

$364

$453

$500

Updated Calculations

SPEC

Software Platform Revenue

Trailing

12-Calendar month Basis

$125,000

North/A

380

292

208

156

142

Revenue per SPEC

N/A

$i,634

$1,593

$1,581

$one,544

$ane,404

Monthly Active Payers (MAPs).
We define a MAP equally a unique mobile device active on one of our apps in a month that completed at to the lowest degree i IAP during that fourth dimension period. A consumer who makes IAPs within ii split up apps on the same mobile device in a monthly menses will be counted as ii MAPs. MAPs for a particular time period longer than one calendar month are the boilerplate MAPs for each month during that menstruum. We estimate the number of MAPs by aggregating certain data from third-party attribution partners. Some of our apps do non utilize such third-political party attribution partners, and therefore, our MAPs figure for any catamenia does non capture every user that completed an IAP on our apps. We judge that our counted MAPs generated approximately 97% of our Consumer Revenue during the three months catastrophe December 31, 2021, and as such, management believes that MAPs are all the same a useful metric to measure the engagement and monetization potential of our games. We expect to increase our MAPs over time as we increment the number of our apps and raise the engagement and monetization of our apps.

Average Revenue Per Monthly Active Payer (ARPMAP).
We ascertain ARPMAP as (i) the full Consumer Revenue derived from our apps in a monthly period, divided by (ii) MAPs in that same flow. ARPMAP for a particular time period longer than one month is the average ARPMAP for each month during that menstruum. ARPMAP shows how efficiently nosotros are monetizing each MAP. We wait to increase ARPMAP over time as nosotros raise the monetization of our apps.

4Q 2021

4Q 2020

Monthly Agile Payers (millions)

2.vii

2.1

Average Revenue per Monthly Active Payer (ARPMAP)

$44

$41

Our key metrics are not based on whatever standardized manufacture 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 past 3rd parties or from similarly titled metrics of our competitors due to differences in methodology. The numbers that nosotros employ to summate TSTV, MAP, and ARPMAP are based on internal information. While these numbers are based on what we believe to exist reasonable judgements and estimates for the applicable period of measurement, in that location are inherent challenges in measuring usage and date. Nosotros regularly review and may arrange our processes for computing our internal metrics to improve their accuracy.

AppLovin Corporation

Consolidated Balance Sheets

(in thousands, except for share and per share information)

December 31,

2021

December 31,

2020

Assets

(unaudited)

Current avails:

Cash and greenbacks equivalents

$

1,520,504

$

317,235

Restricted cash equivalents

1,050,000

Accounts receivable, net

514,520

296,964

Prepaid expenses and other electric current assets

150,040

48,795

Total current avails

3,235,064

662,994

Holding and equipment, internet

63,608

28,587

Operating lease right-of-apply assets

70,975

84,336

Goodwill

966,427

249,773

Intangible assets, net

ane,709,347

1,086,332

Other assets

118,158

42,571

Total assets

$

half dozen,163,579

$

2,154,593

Liabilities, redeemable noncontrolling involvement, and stockholders’ disinterestedness (deficit)

Electric current liabilities:

Accounts payable

$

258,220

$

147,275

Accrued liabilities

133,770

95,057

Licensed nugget obligation

17,374

18,760

Short-term debt

25,810

15,210

Deferred acquirement

78,930

86,886

Operating charter 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 nugget 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, nada and 109,090,908 shares issued, nil and 109,090,908 shares outstanding at December 31, 2021 and 2020; respectively

399,589

Class A, Grade B and Course F common stock, $0.00003 par value—1,700,000,000 (Grade A 1,500,000,000, Grade B 200,000,000, Grade F nil) and 429,600,000 (Grade A 386,400,000, Class B goose egg, Class F 43,200,000) shares authorized, 375,089,360 (Class A 296,426,738, Class B 78,662,622, Form F zero) and 226,364,401 (Grade A 183,800,251, Class B zippo, Course F 42,564,150) shares issued and outstanding as of December 31, 2021 and 2020, respectively

11

vii

Additional paid-in capital

3,160,487

453,655

Accumulated other comprehensive income (loss)

(45,454

)

604

Accumulated deficit

(976,954

)

(1,012,400

)

Full stockholders’ equity (deficit)

2,138,090

(158,545

)

Total liabilities, redeemable noncontrolling interest, and stockholders’ equity (deficit)

6,163,579

two,154,593

AppLovin Corporation

Consolidated Statements of Operations

(in thousands, except per share information)

3 Months Ended

Twelve Months Concluded

December 31,

December 31,

2021

2020

2021

2020

(unaudited)

(unaudited)

Acquirement

$

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

Charter 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

ane,513,128

Income (loss) from operations

58,525

(four,958

)

150,016

(62,042

)

Other income (expense):

Involvement 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

)

(seven,448

)

ten,973

(9,772

)

Net income (loss)

31,407

(eighteen,973

)

35,338

(125,934

)

Add: Net loss (income) attributable to noncontrolling interest

(41

)

201

108

747

Cyberspace income (loss) attributable to AppLovin

31,366

(18,772

)

35,446

(125,187

)

Less: Net income attributable to participating securities

(312

)

(iii,743

)

Net income (loss) owing to common stock—Basic

31,054

(xviii,772

)

31,703

(125,187

)

Net income (loss) attributable to common stock—Diluted

$

31,068

$

(eighteen,772

)

$

31,879

$

(125,187

)

Net income (loss) per share attributable to mutual stockholders:

Basic

$

0.08

$

(0.09

)

$

0.x

$

(0.58

)

Diluted

$

0.08

$

(0.09

)

$

0.09

$

(0.58

)

Weighted average common shares used to compute net

income (loss) per share attributable to mutual stockholders:

Bones

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

Contacts

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Source: https://www.dailyhostnews.com/applovin-announces-record-financial-results-for-the-fourth-quarter-and-full-year-2021

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