Segments

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segments

Segments

During the second quarter of 2022, the Company revised the presentation of segment information to align with changes to how the Company's chief operating decision maker (“CODM”) manages the business, allocates resources and assesses operating performance. The CODM is the Company's Chief Executive Officer. Prior to the second quarter of 2022, the Company had a single operating and reportable segment. Beginning in the second quarter of 2022, the Company reports operating results based on two reportable segments: Software Platform and Apps. As of September 30, 2022, the Company's operating segments are the same as the reportable segments, which are as follows:

•Software Platform: Software Platform generates revenue primarily from fees paid by advertisers for the placement of ads on mobile applications owned by Publishers.

•Apps: Apps generates revenue when a user of one of the Apps makes an in-app purchase ("Consumer Revenue") and when clients purchase the digital advertising inventory of the Company's portfolio of Apps ("Business Revenue").

The CODM evaluates the performance of each operating segment using revenue and segment adjusted EBITDA. The Company defines segment adjusted EBITDA as revenue less expenses, excluding depreciation and amortization and certain items that the Company does not believe are reflective of the operating segments’ core operations. Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities and general and administrative overhead. Revenue and expenses exclude transactions between the Company's operating segments.

The following table provides information about the Company's reportable segments and a reconciliation of the total segment adjusted EBITDA to consolidated income (loss) before income taxes (in thousands). For comparative purposes, amounts in prior periods have been recast:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue:
Software Platform	$	306,592	$	193,307	$	742,972	$	427,390
Apps	406,507		533,644		1,371,779		1,572,244
Total Revenue	$	713,099	$	726,951	$	2,114,751	$	1,999,634
Segment Adjusted EBITDA:
Software Platform	$	190,256	$	130,663	$	622,555	$	281,904
Apps	67,381		60,033		181,055		223,586
Total Segment Adjusted EBITDA	$	257,637	$	190,696	$	803,610	$	505,490
Interest expense and loss on settlement of debt, net	$	(48,627)	$	(18,756)	$	(117,141)	$	(72,796)
Other income (expense), net	3,604		(103)		8,473		6,852
Amortization, depreciation and write-offs	(163,830)		(119,436)		(445,507)		(315,409)
Non-operating foreign exchange gain	406		235		1,683		1,510
Stock-based compensation	(42,147)		(34,725)		(143,943)		(94,119)
Acquisition-related expense and transaction bonus	(4,317)		(1,066)		(21,052)		(14,060)
Publisher bonuses	—		—		(209,635)		—
MoPub acquisition transition services	—		—		(6,999)		—
Restructuring costs	(1,117)		—		(8,494)		—
Change in fair value of contingent consideration	—		230		—		230
Income (loss) before provision for tax	$	1,609	$	17,075	$	(139,005)	$	17,698

The CODM does not evaluate operating segments using asset information and, accordingly, the Company does not report asset information by segment.