AppLovin Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>AppLovin Corp. has submitted its 2023 annual report detailing its financial performance and business operations.</b>

AI Summary

AppLovin Corp (APP) filed a Annual Report (10-K) with the SEC on February 26, 2024. AppLovin Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 1100 Page Mill Rd, Palo Alto, CA 94304-1047. AppLovin Corp. is classified under SIC code 7370: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. The report was filed on February 26, 2024.

Why It Matters

For investors and stakeholders tracking AppLovin Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of AppLovin's financial health and strategic direction for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance in the competitive software and data processing industry.

Risk Assessment

Risk Level: medium — AppLovin Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies, indicating no immediate red flags but requiring detailed review for specific financial and operational insights.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand AppLovin's performance and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-26 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Report Start Date (Beginning of the reporting period)
• 2022-12-31 — Prior Year End Date (End date of the previous fiscal year)

Key Players & Entities

• AppLovin Corp. (company) — Filer name
• 1100 Page Mill Rd (address) — Business and mailing address
• Palo Alto (location) — City for business and mailing address
• CA (location) — State for business and mailing address
• 94304-1047 (postal_code) — ZIP code for business and mailing address
• 7370 (sic_code) — Standard Industrial Classification code

FAQ

Industry Context

AppLovin Corp. operates in the services sector, specifically computer programming and data processing. This industry is characterized by rapid technological advancements and evolving market demands.

Regulatory Implications

As a public company, AppLovin Corp. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze AppLovin's revenue streams and growth drivers for FY 2023.
2. Examine the company's balance sheet and debt levels as of December 31, 2023.
3. Review any disclosed risk factors that could impact future performance.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date AppLovin Corp. submitted its 10-K filing.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, as indicated by the filing date of February 26, 2024.

Key Financial Figures

• $0.00003 — stered Class A common stock, par value $0.00003 per share APP The Nasdaq Stock Market L

Filing Documents

• app-20231231.htm (10-K) — 2493KB
• exhibit1072023123110k.htm (EX-10.7) — 35KB
• exhibit10262023123110k.htm (EX-10.26) — 103KB
• exhibit2112023123110k.htm (EX-21.1) — 6KB
• exhibit2312023123110k.htm (EX-23.1) — 2KB
• exhibit3112023123110k.htm (EX-31.1) — 10KB
• exhibit3122023123110k.htm (EX-31.2) — 10KB
• exhibit3212023123110k.htm (EX-32.1) — 8KB
• exhibit9712023123110k.htm (EX-97.1) — 37KB
• app-20231231_g1.jpg (GRAPHIC) — 254KB
• app-20231231_g2.jpg (GRAPHIC) — 247KB
• image_0.jpg (GRAPHIC) — 10KB
• image_0a.jpg (GRAPHIC) — 13KB
• 0001751008-24-000012.txt (&nbsp;) — 14539KB
• app-20231231.xsd (EX-101.SCH) — 100KB
• app-20231231_cal.xml (EX-101.CAL) — 148KB
• app-20231231_def.xml (EX-101.DEF) — 483KB
• app-20231231_lab.xml (EX-101.LAB) — 1276KB
• app-20231231_pre.xml (EX-101.PRE) — 822KB
• app-20231231_htm.xml (XML) — 1849KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 40 Item 1C. C yber se curity 40

Properties

Item 2. Properties 42

Legal Proceedings

Item 3. Legal Proceedings 42

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 42 Part II 42

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 42

[Reserved]

Item 6. [Reserved] 43

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 60

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 61

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 105

Controls and Procedures

Item 9A. Controls and Procedures 105

Other Information

Item 9B. Other Information 105

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 Part III 107

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 107

Executive Compensation

Item 11. Executive Compensation 107

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 107

Certain Relationship and Related Transactions, and Director Independence

Item 13. Certain Relationship and Related Transactions, and Director Independence 107

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 107 Part IV 108

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 108

Form 10-K Summary

Item 16. Form 10-K Summary 111

Signatures

Signatures 112 Table of Contents NOTE ABOUT FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include statements about: our future financial performance, including our expectations regarding our revenue, cost of revenue, and operating expenses, and our ability to achieve or maintain future profitability; the sufficiency of our cash and cash equivalents to meet our liquidity needs; our ability to maintain the security and availability of our AppLovin Software Platform and AppLovin Apps; our expectations regarding the effects of existing and developing laws and regulations, including with respect to taxation and privacy and data protection; our ability to attract and retain employees and key personnel; our expectations regarding the macroeconomic environment, inflation and high interest rates, uncertainty in the global banking and financial services markets, political uncertainty and international conflicts around the world; our ability to maintain, protect and enhance our intellectual property; our ability to manage risk associated with our business; the demand for our AppLovin Software Platform and AppLovin Apps; our expectations concerning relationships with third parties; our ability to attract and retain clients and user

Business

Item 1. Business Our mission is to create meaningful connections between companies and their ideal customers. Our software platform provides end-to-end software and artificial intelligence-powered ("AI") solutions for businesses to reach, monetize and grow their global audience ("Software Platform"). We also operate a portfolio of owned mobile apps ("Apps"). Our scaled business model sits at the nexus of the advertising ecosystem, which creates a durable competitive advantage that has fueled our clients' success and our strong growth. AppLovin is critical to the success of advertisers seeking to solve marketing and monetization challenges. Through our technologies and scaled distribution, advertisers are able to better place content so that it is discovered by the right audience, manage, optimize, and analyze their marketing investments, and improve the monetization of their content. Our Software Platform includes a comprehensive suite of tools including: AppDiscovery, our marketing software solution, is the cornerstone of our Software Platform, augmented by our rapidly growing MAX monetization solution. AppDiscovery is powered by AXON, our AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is our monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers. Adjust is our measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results. Wurl is our connected TV ("CTV") platform that both distributes streaming video for content companies and provides advanced advertising and publishing solutions to attract viewers and maximize revenue. We generate our revenue from our Softwar

View Full Filing

View this 10-K filing on SEC EDGAR