Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

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,
	2023		2022		2023		2022
Basic EPS
Numerator:
Net income (loss) attributable to AppLovin	$	108,639	$	23,771	$	184,478	$	(113,234)
Less:
Income attributable to options exercises by promissory notes	(442)		(102)		(720)		—
Income attributable to common stock subject to share repurchase agreements	(360)		—		(228)		—
Income attributable to unvested early exercised options	(2)		(18)		(15)		—
Income attributable to unvested RSAs	—		(2)		—		—
Net income (loss) attributable to AppLovin common stockholders—Basic	$	107,835	$	23,649	$	183,515	$	(113,234)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic	341,435,759		369,389,170		357,009,609		371,736,763
Net income (loss) per share attributable to common stock—Basic	$	0.32	$	0.06	$	0.51	$	(0.30)
Diluted EPS
Numerator:
Net income (loss) attributable to AppLovin	108,639		23,771		184,478		(113,234)
Less:
Income attributable to options exercises by promissory notes	(423)		(99)		(698)		—
Income attributable to common stock subject to share repurchase agreements	(345)		—		(220)		—
Income attributable to unvested early exercised options	(2)		(17)		(15)		—
Income attributable to unvested RSAs	—		(2)		—		—
Net income (loss) attributable to AppLovin common stockholders—Diluted	$	107,869	$	23,653	$	183,545	$	(113,234)
Denominator:
Weighted-average shares used in computing net income (loss) per share—Basic	341,435,759		369,389,170		357,009,609		371,736,763
Weighted-average dilutive stock awards	15,470,463		9,073,037		11,249,904		—
Weighted-average shares used in computing net income (loss) per share—Diluted	356,906,222		378,462,207		368,259,513		371,736,763
Net income (loss) per share attributable to AppLovin common stockholders—Diluted	$	0.30	$	0.06	$	0.50	$	(0.30)

Schedule of Antidilutive Potential Common Shares

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


	As of September 30,
	2023	2022
Stock options exercised for promissory notes	1,399,999	1,399,999
Early exercised stock options	5,736	191,748
Stock options	613,968	12,168,796
Unvested RSUs	4,747,127	9,318,132
ESPP	—	413,829
Total antidilutive potential common shares	6,766,830	23,492,504