Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Basic EPS
Numerator:
Net income (loss) attributable to AppLovin	$	23,771	$	178	$	(113,234)	$	4,080
Less:
Income attributable to convertible preferred stock	—		—		—		(499)
Income attributable to options exercised by promissory notes	(102)		(1)		—		(49)
Income attributable to unvested early exercised options	(18)		—		—		(13)
Income attributable to unvested RSA’s	(2)		—		—		(7)
Net income (loss) attributable to common stock	$	23,649	$	177	$	(113,234)	$	3,512
Denominator:
Weighted average common shares used to compute net income (loss) per share attributable to common stock, basic	369,389,170		368,427,532		371,736,763		309,353,304
Net income (loss) per share attributable to common stock, basic	$	0.06	$	0.00	$	(0.30)	$	0.01
Diluted EPS
Numerator:
Net income (loss) attributable to AppLovin	$	23,771	$	178	$	(113,234)	$	4,080
Less:
Income attributable to convertible preferred stock	—		—		—		(475)
Income attributable to options exercises by promissory notes	(99)		(1)		—		(47)
Income attributable to unvested early exercised options	(17)		—		—		(12)
Income attributable to unvested RSA's	(2)		—		—		(7)
Net income (loss) attributable to common stock	$	23,653	$	177	$	(113,234)	$	3,539
Denominator:
Weighted-average shares used in computing net income (loss) per share: basic	369,389,170		368,427,532		371,736,763		309,353,304
Weighted-average dilutive stock options, RSUs, and convertible security	9,073,037		15,897,253		—		18,073,488
Weighted-average shares used in computing net income (loss) per share: diluted	378,462,207		384,324,785		371,736,763		327,426,792
Net income (loss) per share attributable to common stock: diluted	$	0.06	$	0.00	$	(0.30)	$	0.01

Schedule of Antidilutive Potential Common Shares

The following table presents the forms of antidilutive potential common shares:


	As of September 30,
	2022	2021
Stock options exercised for promissory notes	1,399,999	2,884,999
Shares issuable upon conversion of Athena convertible security	—	334,946
Early exercised stock options	191,748	879,600
Unvested RSAs	—	242,316
Stock options	12,168,796	23,736
Unvested RSUs	9,318,132	2,828
ESPP	413,829	223,448
Total antidilutive potential common shares	23,492,504	4,591,873