Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segments

Segments

The Company determines its operating segments based on how its chief operating decision maker (“CODM”), the Chief Executive Officer, manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Company's two operating and reportable segments 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 and when an advertiser purchases the digital advertising inventory of the Company's portfolio of Apps.

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, and, accordingly, the Company does not report asset information by segment.

The following table provides information about the Company's reportable segments and a reconciliation of the total segment adjusted EBITDA to income before income taxes (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue:
Software Platform	$	711,015	$	406,063	$	1,389,385	$	760,821
Apps	369,104		344,102		748,849		704,749
Total Revenue	$	1,080,119	$	750,165	$	2,138,234	$	1,465,570
Segment Adjusted EBITDA:
Software Platform	$	520,482	$	272,886	$	1,012,502	$	491,580
Apps	80,712		60,628		137,463		115,632
Total Segment Adjusted EBITDA	$	601,194	$	333,514	$	1,149,965	$	607,212
Interest expense	$	(74,666)	$	(50,987)	$	(148,848)	$	(125,498)
Other income, net	9,241		15,817		12,638		25,588
Amortization, depreciation and write-offs	(108,541)		(119,892)		(221,208)		(248,100)
Loss on disposal of long-lived assets	—		—		(1,646)		—
Non-operating foreign exchange gain (loss)	330		(126)		224		546
Stock-based compensation	(98,724)		(81,253)		(193,977)		(164,219)
Transaction-related expense	(485)		(247)		(854)		(764)
Restructuring costs	(3,082)		(1,024)		(3,082)		(2,316)
Income before income taxes	$	325,267	$	95,802	$	593,212	$	92,449