Earnings Per Share

6 Months Ended

Jun. 30, 2024

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 20 votes per share. Each share of Class B common stock is convertible into a share of Class A common stock voluntarily at any time by the holder, and automatically upon certain events. The Class A common stock has no conversion rights. As the liquidation and dividend rights are identical for Class A and Class B common stock, the undistributed earnings are allocated on a proportional basis and the resulting net income per share attributable to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Basic EPS
Numerator:
Net income attributable to AppLovin	$	309,969	$	80,357	$	546,152	$	75,839
Less:
Income attributable to options exercised by promissory notes	(79)		(314)		(911)		(290)
Income attributable to common stock subject to share repurchase agreements	—		—		(840)		—
Income attributable to unvested early exercised options	—		(4)		(1)		(9)
Net income attributable to Class A and Class B common stockholders—Basic	$	309,890	$	80,039	$	544,400	$	75,540
Denominator:
Weighted-average shares used in computing net income per share—Basic	335,681,788		356,957,059		335,785,864		365,013,736
Net income per share attributable to common stock—Basic	$	0.92	$	0.22	$	1.62	$	0.21
Diluted EPS
Numerator:
Net income attributable to AppLovin	309,969		80,357		546,152		75,839
Less:
Income attributable to options exercised by promissory notes	(76)		(306)		(878)		(284)
Income attributable to common stock subject to share repurchase agreements	—		—		(810)		—
Income attributable to unvested early exercised options	—		(4)		(1)		(8)
Net income attributable to Class A and Class B common stockholders—Diluted	$	309,893	$	80,047	$	544,463	$	75,547
Denominator:
Weighted-average shares used in computing net income per share—Basic	335,681,788		356,957,059		335,785,864		365,013,736
Weighted-average dilutive stock awards	12,282,413		9,383,216		12,541,984		8,008,464
Weighted-average shares used in computing net income per share—Diluted	347,964,201		366,340,275		348,327,848		373,022,200
Net income per share attributable to common stock—Diluted	$	0.89	$	0.22	$	1.56	$	0.20

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


	As of June 30,
	2024	2023
Stock options exercised for promissory notes	85,000	1,399,999
Early exercised stock options	—	8,324
Stock options	—	955,658
Unvested RSUs	347,627	5,547,615
ESPP	43,712	750,149
Total antidilutive potential common shares	476,339	8,661,745

The table above excludes any unvested PSUs since the related market conditions had not been met as of June 30, 2024.