APPLOVIN CORP MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) - Marketscreener.com

Software Platform Revenue
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Apps Revenue
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Key Metrics
We review the following key metrics on a regular basis in order to evaluate the health of our business, identify trends affecting our performance, prepare financial projections, and make strategic decisions.
The following table shows our Software Platform Enterprise Clients and Revenue per SPEC for the three months March 31, 2022 and 2021.
The table below shows our SPEC and Revenue per SPEC as of March 31, 2022 and 2021 under the updated calculations.
Revenue per SPEC (trailing 12 months) (in thousands) $ 1,701
$ 1,544
The following table shows our Total Software Transaction Value for the three months ended March 31, 2022 and 2021.
Total Software Transaction Value $ 185,640 $ 147,901
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The following table shows our Monthly Active Payers and Average Revenue Per Monthly Active Payer for the three months ended March 31, 2022 and 2021.
2021
Non-GAAP Financial Metrics
Adjusted EBITDA and Adjusted EBITDA Margin
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Factors Affecting Our Performance
Continue to invest in innovation
Retain and grow existing clients
2 Excludes recurring operational foreign exchange gains and losses. 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, and to retain certain existing MAX publishers. These costs were reflected as a reduction to revenue in the period. 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. 4 Reflects one-time transition services provided by Twitter to AppLovin.
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Add new clients globally
Review of our AppLovin Apps portfolio
Continued execution of strategic acquisitions and partnerships
While we have a strong pipeline of strategic acquisition and partnership opportunities, we believe our future results of operations will be affected by our ability to continue to identify and execute such transactions that are accretive to our growth and profitability.
Growth and structure of the mobile app ecosystem
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Components of Results of Operations
Revenue
Cost of Revenue and Operating Expenses
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Other Income and Expenses
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Results of Operations
42,962
592,412
11,465
(1) Includes stock-based compensation expense as follows:
Total stock-based compensation $ 44,640 $ 29,959
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(1) Totals of percentages of revenue may not foot due to rounding.
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Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021
Total revenue increased by $21.5 million, or 4%, for the three months ended March 31, 2022 compared to the prior year period due to increases in Software Platform Revenue of 34% and Business Revenue of 6%, partially offset by a decline in Consumer Revenue of 5%.
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Interest expense and loss on settlement of debt
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Liquidity and Capital Resources
The following table summarizes our cash flows for the periods indicated:
Net cash provided by (used in) operating activities $ (31,719) $ 61,819 Net cash used in investing activities
(18,273)
Net cash provided by (used in) financing activities $ (65,424) $ 400,374
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Investing Activities
Net cash used in investing activities was $18.3 million for the three months ended March 31, 2021, primarily consisting of $14.0 million in purchases of non-marketable investments and other and $4.2 million related to acquisitions.
Financing Activities
Contractual Obligations
In the first quarter of 2022, we invested or committed to invest in certain private equity funds with total unfunded commitments of $44.1 million as of March 31, 2022.
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Critical Accounting Policies and Estimates
Recent Accounting Pronouncements
See Note 2, “Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
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