Segments and Geographic Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segments and Geographic Information

Segments and Geographic Information

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 December 31, 2022, the Company's operating segments are the same as the reportable segments, which are as follows:

•Software Platform: Software Platform generates revenue prim$arily 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 ("IAP Revenue") and when clients purchase the digital advertising inventory of the Company's portfolio of Apps ("IAA 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 CODM does not evaluate operating segments using asset information.

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:

	As of December 31,
	2022		2021		2020
Revenue:
Software Platform	$	1,049,167	$	673,952	$	207,285
Apps	1,767,891		2,119,152		1,243,801
Total Revenue	$	2,817,058	$	2,793,104	$	1,451,086
Segment Adjusted EBITDA:
Software Platform	$	808,415	$	457,302	$	121,114
Apps	254,795		269,512		224,381
Total Segment Adjusted EBITDA	$	1,063,210	$	726,814	$	345,495
Interest expense and loss on settlement of debt, net	$	(171,863)	$	(103,170)	$	(77,873)
Other income, net	18,647		7,545		6,183
Amortization, depreciation and write-offs	(547,084)		(431,063)		(254,951)
Impairment and loss on disposal of long-lived assets	(127,892)		—		—
Non-operating foreign exchange gain (loss)	164		1,537		(1,210)
Stock-based compensation	(191,612)		(135,468)		(62,387)
Acquisition-related expense and transaction bonus	(21,279)		(16,887)		(7,850)
Publisher bonuses	(209,635)		(3,227)		—
MoPub acquisition transition services	(6,999)		—		—
Restructuring costs	(10,834)		—		—
Extinguishments of acquisition-related contingent consideration	—		—		(74,820)
Loss from modification of leases	—		—		(7,851)
Change in fair value of contingent consideration	—		230		(442)
Income (loss) before provision for tax	$	(205,177)	$	46,311	$	(135,706)

The following table presents long-lived assets by geographic area which consist of property and equipment, net (in thousands):

	As of December 31,
	2022		2021
United States	$	25,548	$	25,681
Germany	32,044		22,872
Netherlands	20,629		14,265
All other countries	322		790
Total property and equipment, net	$	78,543	$	63,608

For information regarding revenue disaggregated by geography, see Note 2 - Summary of Significant Accounting Policies