Applovin(US:APP)2023-11-07 16:00Revenue Performance - Revenue for the three months ended September 30, 2023 increased by 21% to $864.3 million compared to $713.1 million in the same period in 2022[133] - Revenue for the nine months ended September 30, 2023 increased by 10% to $2.33 billion compared to $2.11 billion in the same period in 2022[133] Software Platform Revenue - Software Platform Revenue for the three months ended September 30, 2023 increased by 65% to $504.5 million compared to $306.6 million in the same period in 2022[141] - Software Platform Revenue for the nine months ended September 30, 2023 increased by 70% to $1.27 billion compared to $743.0 million in the same period in 2022[141] Apps Revenue - Apps Revenue for the three months ended September 30, 2023 decreased by 11% to $359.8 million compared to $406.5 million in the same period in 2022[141] - Apps Revenue for the nine months ended September 30, 2023 decreased by 22% to $1.06 billion compared to $1.37 billion in the same period in 2022[141] Cost of Revenue - Cost of revenue for the three months ended September 30, 2023 decreased by 12% to $265.0 million compared to $301.0 million in the same period in 2022[143] - Cost of revenue for the nine months ended September 30, 2023 decreased by 11% to $785.6 million compared to $886.7 million in the same period in 2022[143] Net Income - Net income for the three months ended September 30, 2023 was $108.6 million compared to $23.7 million in the same period in 2022[133] - Net income for the nine months ended September 30, 2023 was $184.5 million compared to a net loss of $113.4 million in the same period in 2022[133] Operating Expenses - Sales and marketing expenses increased by $15.6 million (8%) in Q3 2023 compared to Q3 2022, primarily due to a $17.1 million increase in personnel-related expenses[144] - Research and development expenses increased by $37.2 million (31%) in Q3 2023 compared to Q3 2022, driven by a $48.9 million increase in stock-based compensation[145] - General and administrative expenses decreased by $2.8 million (6%) in Q3 2023 compared to Q3 2022, primarily due to a $5.0 million decrease in acquisition-related expenses[146] Interest and Debt - Interest expense and loss on settlement of debt increased by $30.0 million (62%) in Q3 2023 compared to Q3 2022, due to higher interest rates on outstanding debt[147] - Interest income and other, net increased by $0.5 million (54%) in Q3 2023 compared to Q3 2022, driven by a $5.0 million increase in interest income on cash and cash equivalents[148] - The company refinanced $1.7 billion in term loans in August 2023, with a new maturity date of August 16, 2030 and an interest rate floor of 50 basis points for Term SOFR Loans[159] - As of September 30, 2023, $418.7 million was available to be drawn from the revolving credit facility[159] - The company's interest rate risk management strategy includes pay-fixed receive-variable interest rate swap agreements, with a hypothetical 100 basis point change in interest rates not having a material impact on cash interest expense[164] Taxes - Provision for income taxes increased by $22.6 million (103%) in Q3 2023 compared to Q3 2022, primarily due to higher pre-tax book income[149] Adjusted EBITDA - Software Platform Adjusted EBITDA increased by $173.9 million (91%) in Q3 2023 compared to Q3 2022, driven by a $197.9 million increase in Software Platform revenue[151] - Apps Adjusted EBITDA decreased by $12.2 million (18%) in Q3 2023 compared to Q3 2022, primarily due to a $46.7 million decrease in Apps Revenue[151] - Software Platform Adjusted EBITDA increased by $233.1 million (37%) in the nine months ended September 30, 2023, driven by a $522.3 million increase in Software Platform revenue[152] Cash Flow and Liquidity - Cash and cash equivalents stood at $332.5 million as of September 30, 2023, sufficient to cover anticipated needs for the next 12 months[153] - Net cash provided by operating activities for the nine months ended September 30, 2023 was $717.5 million, compared to $249.6 million in the same period in 2022[155] - Net cash used in investing activities for the nine months ended September 30, 2023 was $71.0 million, primarily due to $51.8 million in earn-out payments and $16.9 million in purchases of non-marketable equity securities[156] - Net cash used in financing activities for the nine months ended September 30, 2023 was $1,392.3 million, primarily due to $1,153.6 million in stock repurchases and $490.5 million in debt repayments[157] - The company repurchased 46,665,285 shares of Class A common stock for $1,153.6 million during the nine months ended September 30, 2023[158]