Segments

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue:
Software Platform	$	835,186	$	504,452	$	2,224,571	$	1,265,273
Apps	363,049		359,804		1,111,898		1,064,553
Total Revenue	$	1,198,235	$	864,256	$	3,336,469	$	2,329,826
Segment Adjusted EBITDA:
Software Platform	$	653,396	$	364,117	$	1,665,898	$	855,697
Apps	68,220		55,174		205,683		170,806
Total Segment Adjusted EBITDA	$	721,616	$	419,291	$	1,871,581	$	1,026,503
Interest expense	$	(75,213)	$	(78,583)	$	(224,061)	$	(204,081)
Other income, net	4,500		771		17,138		26,359
Amortization, depreciation and write-offs	(99,635)		(121,797)		(320,843)		(369,897)
Loss on disposal of long-lived assets	—		—		(1,646)		—
Non-operating foreign exchange gain	935		613		1,159		1,159
Stock-based compensation	(81,557)		(110,839)		(275,534)		(275,058)
Transaction-related expense	(26)		(231)		(880)		(995)
Restructuring costs	(2,951)		—		(6,033)		(2,316)
Income before income taxes	$	467,669	$	109,225	$	1,060,881	$	201,674