AppLovin Corp

Previous wording

For the three months ended June 30, 2024, our revenue increased 44% year-over-year to $1.08 billion, from $750.2 million in the three months ended June 30, 2023. We generated net income of $310.0 million and $80.4 million for the three months ended June 30, 2024 and 2023, respectively. We generated Adjusted EBITDA of $601.2 million and $333.5 million for the three months ended June 30, 2024 and 2023, respectively. Additionally, our net cash provided by operating activities was $847.3 million and $518.5 million in the six months ended June 30, 2024 and 2023, respectively. We generated Free Cash Flow of $833.1 million and $503.7 million for the six months ended June 30, 2024 and 2023, respectively. Given our strong financial position, we have been able to reinvest in our expansion and growth, and repurchase shares of our Class A common stock. See the section titled “Non-GAAP Financial Measures” below for definitions of our non-GAAP financial measures and reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to these measures.

Current wording

For the three months ended September 30, 2024, our revenue increased 39% year-over-year to $1.20 billion, from $864.3 million in the three months ended September 30, 2023. We generated net income of $434.4 million and $108.6 million for the three months ended September 30, 2024 and 2023, respectively. We generated Adjusted EBITDA of $721.6 million and $419.3 million for the three months ended September 30, 2024 and 2023, respectively. Additionally, our net cash provided by operating activities was $1.40 billion and $717.5 million in the nine months ended September 30, 2024 and 2023, respectively. We generated Free Cash Flow of $1.38 billion and $697.3 million for the nine months ended September 30, 2024 and 2023, respectively. Given our strong financial position, we have been able to reinvest in our expansion and growth, and repurchase shares of our Class A common stock. See the section titled “Non-GAAP Financial Measures” below for definitions of our non-GAAP financial measures and reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to these measures.

Previous wording

We collect revenue from our Software Platform and our Apps. During the three months ended June 30, 2024, Software Platform Revenue represented 66% of total revenue and Apps Revenue represented 34% of total revenue.

Current wording

We collect revenue from our Software Platform and our Apps. During the three months ended September 30, 2024, Software Platform Revenue represented 70% of total revenue and Apps Revenue represented 30% of total revenue.

Previous wording

Software Platform clients include a wide variety of advertisers, from indie developer studios to some of the largest global internet platforms, such as Facebook and Google. We see multiple opportunities to gain new Software Platform clients, and to increase spend from existing clients, as we help them grow their businesses and make them more successful.

Current wording

Software Platform clients include a wide variety of advertisers, from indie developer studios to some of the largest global internet platforms, such as Facebook and Google. Our Software Platform provides advertisers with access to over 1.4 billion daily active users 1. As such, we see multiple opportunities to gain new Software Platform clients, and to increase spend from existing clients, as we help them grow their businesses and make them more successful.

Previous wording

Monthly Active Payers ("MAPs"). We define a MAP as a unique mobile device active on one of our Apps in a month that completed at least one IAP during that time period. A consumer who makes IAPs within two separate Apps on the same mobile device in a monthly period will be counted as two MAPs. MAPs for a particular time period longer than one month are the average MAPs for each month during that period. We estimate the number of MAPs by aggregating certain data from third-party attribution partners. We estimate that our counted MAPs generated substantially all of our IAP Revenue during the three months ended June 30, 2024, and as such, management believes that MAPs is a useful metric to measure the engagement and monetization potential of our games.

Current wording

Monthly Active Payers ("MAPs"). We define a MAP as a unique mobile device active on one of our Apps in a month that completed at least one IAP during that time period. A consumer who makes IAPs within two separate Apps on the same mobile device in a monthly period will be counted as two MAPs. MAPs for a particular time period longer than one month are the average MAPs for each month during that period. We estimate the number of MAPs by aggregating certain data from third-party attribution partners. We estimate that our counted MAPs generated substantially all of our IAP Revenue during the three months ended September 30, 2024, and as such,

Previous wording

We define Adjusted EBITDA for a particular period as net income before interest expense, other income, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for stock-based compensation expense, transaction-related expense and transaction bonus, publisher bonuses, MoPub acquisition transition services, restructuring costs, impairment and (gain) loss in connection with the disposal of long-lived assets, non-operating foreign exchange (gain) losses, and change in the fair value of contingent consideration. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

Current wording

We define Adjusted EBITDA for a particular period as net income before interest expense, other income, net (excluding certain recurring items), provision for income taxes, amortization, depreciation and write-offs and as further adjusted for stock-based compensation expense, transaction-related expense and transaction bonus, publisher bonuses, restructuring costs, impairment and (gain) loss in connection with the disposal of long-lived assets, non-operating foreign exchange (gain) losses, and change in the fair value of contingent consideration. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

Previous wording

The following table provides our Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2024 and 2023, and a reconciliation of net income to Adjusted EBITDA:

Current wording

The following table provides our Adjusted EBITDA and Adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023, and a reconciliation of net income to Adjusted EBITDA:

Previous wording

The following table provides our Free Cash Flow for the six months ended June 30, 2024 and 2023, and a reconciliation of net cash provided by operating activities to Free Cash Flow:

Current wording

The following table provides our Free Cash Flow for the nine months ended September 30, 2024 and 2023, and a reconciliation of net cash provided by operating activities to Free Cash Flow:

Previous wording

MAX, will further improve effectiveness for advertisers. In addition, we plan to continue to invest in the self-learning capabilities of AXON. Our investments will also allow us to enter new verticals outside of gaming, such as eCommerce, CTV, original equipment manufacturer ("OEM"), and carrier-related markets. While our investments in research and development and acquisitions and partnerships may not result in revenue in the near term, we believe these investments position us to increase our revenue over time.

Current wording

MAX, will further improve effectiveness for advertisers. In addition, we plan to continue to invest in the AI-based, self-learning capabilities of our advertising recommendation engine, AXON. Our investments will also allow us to enter into and expand into new verticals outside of gaming, such as e-commerce, CTV, original equipment manufacturer ("OEM"), and carrier-related markets. While our investments in research and development and acquisitions and partnerships may not result in revenue in the near term, we believe these investments position us to increase our revenue over time.

Previous wording

We rely on existing clients for a significant portion of our revenue. As we improve our Software Platform and Apps, we can attract additional spend from these clients. Our clients include indie studio developers and some of the largest advertising platforms in the world. We believe there is significant room for us to further expand our relationships with these clients and increase their usage of our Software Platform. We have invested in targeted sales and account-based marketing efforts to identify and showcase opportunities to clients and plan to continue to do so in the future.

Current wording

We rely on existing clients for a significant portion of our revenue. As we improve our Software Platform and Apps, we can attract additional spend from these clients. Our clients include indie studio developers and some of the largest advertising platforms in the world. Our Software Platform provides advertisers with access to over 1.4 billion daily active users. As such, we believe there is significant room for us to further expand our relationships with these clients and increase their usage of our Software Platform. We have invested in targeted sales and account-based marketing efforts to identify and showcase opportunities to clients and plan to continue to do so in the future.

Previous wording

Our future success depends in part on our ability to acquire new clients. During the three months ended June 30, 2024, 43% of our revenue from Software Platform and IAA Revenue clients was generated from outside of the United States. We believe that the global opportunity is significant and will continue to expand as developers and advertisers outside the United States adopt our Software Platform and advertise on our Apps. We also see opportunities to acquire new clients outside of mobile gaming, as the capabilities of our Software Platform are relevant to the broader advertising ecosystem. We are investing in direct sales, product development, education, and other capabilities to drive increased awareness and adoption of our Software Platform and Apps, which investments may impact our profitability in the near term as we seek further scale.

Current wording

Our future success depends in part on our ability to acquire new clients. During the three months ended September 30, 2024, 47% of our revenue from Software Platform and IAA Revenue clients was generated from outside of the United States. We believe that the global opportunity is significant and will continue to expand as developers and advertisers outside the United States adopt our Software Platform and advertise on our Apps. We also see opportunities to acquire new clients outside of mobile gaming, as the capabilities of our Software Platform are relevant to the broader advertising ecosystem. We are investing in direct sales, product development, education, and other capabilities to drive increased awareness and adoption of our Software Platform and Apps, which investments may impact our profitability in the near term as we seek further scale.

Previous wording

Our business and results of operations will be impacted by industry factors that drive the overall performance of the mobile app and advertising ecosystems. Mobile app developers, including AppLovin, rely on third-party platforms, such as the Apple App Store and Google Play Store, among others, to distribute games, collect payments made for IAPs, and target users with relevant advertising. We expect this to continue for the foreseeable future. These third-party platforms have significant market power and discretion to set platform fees, select which apps to promote, and decide how much consumer information to provide to advertising networks that enable our Software Platform to target users with personalized and relevant advertising and allocate marketing campaigns in an efficient and cost-effective manner. Any changes made in the policies of third-party platforms could drive rapid change across the mobile app and advertising ecosystems. For example, in April 2021, Apple started implementing its application tracking transparency framework that, among other things, requires users' opt-in consent for certain types of tracking. While this transparency framework has not had a significant impact on our overall business, it may do so in the future, including with respect to the effectiveness of our advertising practices and/or our ability to efficiently generate revenue for our Apps. We rely in part on Identifier for Advertisers ("IDFA") to provide us with data that helps our Software Platform better market and monetize Apps. In light of the IDFA and transparency changes, we made changes to our data collection practices. To the extent we are unable to utilize IDFA or a similar offering, or if the transparency changes and any related opt-in or other requirements result in decreases in the availability or utility of data relating to Apps, our Software Platform may not be as effective, we may not be able to continue to efficiently generate revenue for our Apps, and our revenue and results of operations may be harmed. Additionally, Apple implemented new requirements for consumer disclosures regarding privacy and data processing practices in December 2020, which has resulted in increased compliance requirements and could result in decreased usage of our Apps. Apple incorporated new SDK privacy controls into iOS 17, which was released in September 2023, including privacy manifests and signatures designed to allow app developers to outline the data practices for SDKs embedded in their apps, manage tracking domains within SDKs, and curb device fingerprinting by requiring app developers to select allowed reasons for using data received through certain APIs. In February 2022, Google announced its Privacy Sandbox initiative for Android, a multi-year effort expected to restrict tracking activity and limit advertisers' ability to collect app and user data across Android devices. In January 2024, Google commenced rolling out a Chrome feature, called Tracking Protecti…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Our business and results of operations will be impacted by industry factors that drive the overall performance of the mobile app and advertising ecosystems. Mobile app developers, including AppLovin, rely on third-party platforms, such as the Apple App Store and Google Play Store, among others, to distribute games, collect payments made for IAPs, and target users with relevant advertising. We expect this to continue for the foreseeable future. These third-party platforms have significant market power and discretion to set platform fees, select which apps to promote, and decide how much consumer information to provide to advertising networks that enable our Software Platform to target users with personalized and relevant advertising and allocate marketing campaigns in an efficient and cost-effective manner. Any changes made in the policies of third-party platforms could drive rapid change across the mobile app and advertising ecosystems. For example, in April 2021, Apple started implementing its application tracking transparency framework that, among other things, requires users' opt-in consent for certain types of tracking. While this transparency framework has not had a significant impact on our overall business, it may do so in the future, including with respect to the effectiveness of our advertising practices and/or our ability to efficiently generate revenue for our Apps. We rely in part on Identifier for Advertisers ("IDFA") to provide us with data that helps our Software Platform better market and monetize Apps. In light of the IDFA and transparency changes, we made changes to our data collection practices. To the extent we are unable to utilize IDFA or a similar offering, or if the transparency changes and any related opt-in or other requirements result in decreases in the availability or utility of data relating to Apps, our Software Platform may not be as effective, we may not be able to continue to efficiently generate revenue for our Apps, and our revenue and results of operations may be harmed. Additionally, Apple implemented new requirements for consumer disclosures regarding privacy and data processing practices in

Previous wording

Comparison of Our Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023

Current wording

Comparison of Our Results of Operations for the Three and Nine Months Ended September 30, 2024 and 2023

Previous wording

For the three months ended June 30, 2024, our Software Platform Revenue increased by $305.0 million, or 75%, compared to the same period in the prior year primarily due to improved AppDiscovery performance, where net revenue per installation increased 7% and the volume of installations increased 77%. We do not recognize Software Platform Revenue from transactions with our studios.

Current wording

For the three months ended September 30, 2024, our Software Platform Revenue increased by $330.7 million, or 66%, compared to the same period in the prior year primarily due to improved AppDiscovery performance, where net revenue per installation increased 22% and the volume of installations increased 39%. We do not recognize Software Platform Revenue from transactions with our studios.

Previous wording

For the six months ended June 30, 2024, our Apps Revenue increased by $44.1 million, or 6%, from the prior year period, of which, our IAP Revenue from Apps increased by $24.8 million, or 5%, primarily due to a 4% increase in the volume of in-app purchases and a 1% increase in price per in-app purchase, and our IAA Revenue from Apps increased by $19.3 million, or 9%, due primarily to an 81% increase in the volume of advertising impressions, partially offset by a 40% decrease in price per advertising impression.

Current wording

For the three months ended September 30, 2024, our Apps Revenue increased by $3.2 million, from the prior year period, of which, our IAP Revenue from Apps decreased by $1.0 million, due primarily to a 5% decrease in the volume of in-app purchases, partially offset by a 4% increase in price per in-app purchase, and our IAA Revenue from Apps increased by $4.2 million, or 4%, due primarily to an 8% increase in the volume of advertising impressions, partially offset by a 4% decrease in price per advertising impression.

Previous wording

For the six months ended June 30, 2024, our Software Platform Revenue increased by $628.6 million, or 83%, compared to the same period in the prior year, due to improved AppDiscovery performance, where net revenue per installation increased 6% and the volume of installations increased 82%. We do not recognize Software Platform Revenue from transactions with our studios.

Current wording

For the nine months ended September 30, 2024, our Software Platform Revenue increased by $959.3 million, or 76%, compared to the same period in the prior year, due to improved AppDiscovery performance, where net revenue per installation increased 11% and the volume of installations increased 64%. We do not recognize Software Platform Revenue from transactions with our studios.

Previous wording

For the three months ended June 30, 2024, our Apps Revenue increased by $25.0 million, or 7%, from the prior year period, of which, our IAP Revenue from Apps increased by $16.9 million, or 7%, due primarily to a 3% increase in the volume of in-app purchases and a 4% increase in price per in-app purchase, and our IAA Revenue from Apps increased by $8.1 million, or 7%, due primarily to a 56% increase in the volume of advertising impressions, partially offset by a 31% decrease in price per advertising impression.

Current wording

For the nine months ended September 30, 2024, our Apps Revenue increased by $47.3 million, or 4%, from the prior year period, of which, our IAP Revenue from Apps increased by $23.8 million, or 3%, primarily due to a 1% increase in the volume of in-app purchases and a 3% increase in price per in-app purchase, and our IAA Revenue from Apps increased by $23.5 million, or 7%, due primarily to an 53% increase in the volume of advertising impressions, partially offset by a 30% decrease in price per advertising impression.

Previous wording

Cost of revenue in the three months ended June 30, 2024 increased by $24.0 million, or 9%, compared to the same period in the prior year, due primarily to an increase of $35.2 million in expenses associated with operating our network infrastructure driven by the growth in our Software Platform operations, offset by a decrease of $12.1 million in amortization of intangible assets resulting from the end of the useful life of certain intangible assets.

Current wording

Cost of revenue in the three months ended September 30, 2024 increased by $4.6 million, or 2%, compared to the same period in the prior year, due primarily to an increase of $27.9 million in expenses associated with operating our network infrastructure driven by the growth in our Software Platform operations, offset by a decrease of $23.4 million in amortization of intangible assets resulting from the end of the useful life of certain intangible assets.

Previous wording

Cost of revenue in the six months ended June 30, 2024 increased by $56.2 million, or 11%, compared to the same period in the prior year, due primarily to an increase of $70.6 million in expenses associated with operating our network infrastructure driven by the growth in our Software Platform operations, offset by a decrease of $20.7 million in amortization of intangible assets resulting from the end of the useful life of certain intangible assets.

Current wording

Cost of revenue in the nine months ended September 30, 2024 increased by $60.8 million, or 8%, compared to the same period in the prior year, due primarily to an increase of $98.5 million in expenses associated with operating our network infrastructure driven by the growth in our Software Platform operations, offset by a decrease of $44.1 million in amortization of intangible assets resulting from the end of the useful life of certain intangible assets.

Previous wording

Sales and marketing expenses in the three months ended June 30, 2024 increased by $9.7 million, or 5%, compared to the same period in the prior year, due primarily to an increase of $12.4 million in personnel-related expenses primarily related to an increase in stock-based compensation expense and related payroll costs, partially offset by a decrease in user acquisition costs of $6.2 million.

Current wording

Sales and marketing expenses in the three months ended September 30, 2024 decreased by $6.6 million, or 3%, compared to the same period in the prior year, due primarily to a decrease in user acquisition costs of $9.7 million.

Previous wording

Sales and marketing expenses in the six months ended June 30, 2024 increased by $33.4 million, or 8%, compared to the same period in the prior year, due primarily to an increase of $15.4 million in personnel-related expenses primarily related to an increase in stock-based compensation expense and related payroll costs, and an increase in user acquisition costs of $10.9 million.

Current wording

Sales and marketing expenses in the nine months ended September 30, 2024 increased by $26.8 million, or 4%, compared to the same period in the prior year, due primarily to an increase of $14.9 million in personnel-related expenses primarily related to an increase in stock-based compensation expense and related payroll costs, and other individually insignificant factors.

Previous wording

Research and development expenses in the six months ended June 30, 2024 increased by $36.9 million, or 13%, compared to the same period in the prior year, primarily due to an increase of $38.3 million in personnel-related expenses primarily related to an increase in stock-based compensation expense and related payroll costs.

Current wording

Research and development expenses in the nine months ended September 30, 2024 increased by $27.6 million, or 6%, compared to the same period in the prior year, primarily due to an increase of $24.8 million in personnel-related expenses primarily related to an increase in stock-based compensation related payroll costs.

Previous wording

In the six months ended June 30, 2024, interest expense increased by $23.4 million compared to the same period in the prior year, due primarily to a net gain of $15.7 million related to interest rate swaps in the prior year period, with the remaining increase driven primarily by an increase in debt outstanding.

Current wording

In the nine months ended September 30, 2024, interest expense increased by $20.0 million compared to the same period in the prior year, due primarily to a net gain of $15.8 million related to interest rate swaps in the prior year period, with the remaining increase driven primarily by an increase in debt outstanding.

Previous wording

In the three months ended June 30, 2024, other income, net decreased by $6.5 million, or 42%, compared to the same period in the prior year. The decrease was primarily due to a decrease in interest income of $6.0 million due to a reduction in cash and cash equivalents.

Current wording

In the nine months ended September 30, 2024, other income, net decreased by $7.6 million, or 28%, compared to the same period in the prior year. The decrease was primarily due to a decrease in interest income driven by a combination of lower interest rates and a reduction in cash and cash equivalents.

Previous wording

In the three months ended June 30, 2024, the provision for income taxes decreased by $0.1 million compared to the same period in the prior year. The decrease was primarily driven by higher stock-based compensation benefit, higher foreign tax credits generated, and foreign income taxed at different rates, partially offset by higher pre-tax income from business operations, higher global intangible low-taxed income, and lower foreign-derived intangible income deduction during the three months ended June 30, 2024.

Current wording

In the three and nine months ended September 30, 2024, the provision for income taxes increased by $32.7 million and $63.1 million, respectively, as compared to the same periods in the prior year. The increase was primarily driven by higher pre-tax income from business operations, higher global intangible low-taxed income and higher valuation allowance, partially offset by higher stock-based compensation benefit, and foreign income taxed at different rates during the three and nine months ended September 30, 2024.

Previous wording

The $247.6 million, or 91%, increase in Software Platform Adjusted EBITDA for the three months ended June 30, 2024 was primarily driven by an increase in Software Platform revenue of $305.0 million, partially offset by an increase of $34.8 million in expenses associated with operating our network infrastructure driven by the growth in our operations and an increase of $16.1 million in personnel-related expenses.

Current wording

The $289.3 million, or 79%, increase in Software Platform Adjusted EBITDA for the three months ended September 30, 2024 was primarily driven by an increase in Software Platform revenue of $330.7 million, partially offset by an increase of $28.1 million in expenses associated with operating our network infrastructure driven by the growth in our operations and an increase of $8.4 million in personnel-related expenses.

Previous wording

The $520.9 million, or 106%, increase in Software Platform Adjusted EBITDA for the six months ended June 30, 2024 was primarily driven by an increase in Software Platform revenue of $628.6 million, partially offset by an increase of $70.4 million in expenses associated with operating our network infrastructure driven by the growth in our operations and an increase of $18.2 million in personnel-related expenses.

Current wording

The $810.2 million, or 95%, increase in Software Platform Adjusted EBITDA for the nine months ended September 30, 2024 was primarily driven by an increase in Software Platform revenue of $959.3 million, partially offset by an increase of $98.5 million in expenses associated with operating our network infrastructure driven by the growth in our operations and an increase of $26.6 million in personnel-related expenses.

Previous wording

The $20.1 million, or 33%, increase in Apps Adjusted EBITDA for the three months ended June 30, 2024 was primarily driven by an increase in Apps Revenue of $25.0 million and a decrease of $6.2 million in user acquisition costs, offset by an increase of $5.4 million in professional services costs related to development of new games by third parties.

Current wording

The $34.9 million, or 20%, increase in Apps Adjusted EBITDA for the nine months ended September 30, 2024 was primarily driven by an increase in Apps Revenue of $47.3 million, partially offset by an increase of $9.0 million in professional services costs related to development of new games by third parties and an increase of $4.5 million in personnel-related costs.

Previous wording

Since inception, we have financed our operations primarily through payments received from clients using our Software Platform, advertising on our Apps, from IAPs from our Apps, through net proceeds we received from the sales of our convertible preferred stock, Class A common stock in our initial public offering, and debt borrowings, including borrowings made under our credit agreement. As of June 30, 2024, we had cash and cash equivalents of $460.4 million.

Current wording

Since inception, we have financed our operations primarily through payments received from clients using our Software Platform, advertising on our Apps, from IAPs from our Apps, through net proceeds we received from the sales of our convertible preferred stock, Class A common stock in our initial public offering, and debt borrowings, including borrowings made under our credit agreement. As of September 30, 2024, we had cash and cash equivalents of $567.6 million.

Previous wording

Net cash provided by operating activities was $847.3 million for the six months ended June 30, 2024, primarily consisting of $546.2 million of net income, adjusted for certain non-cash items, which included $221.2 million of amortization, depreciation, and write-offs and $194.0 million of stock-based compensation expense, partially offset by a net increase in operating assets and liabilities of $124.3 million. The net increase in the operating assets and liabilities was primarily driven by an increase in accounts receivable and a decrease in accrued liabilities, partially offset by higher accounts payable and lower prepaid expenses and other assets.

Current wording

Net cash provided by operating activities was $1,398.0 million for the nine months ended September 30, 2024, primarily consisting of $980.6 million of net income, adjusted for certain non-cash items, which included $320.8 million of amortization, depreciation, and write-offs and $275.5 million of stock-based compensation expense, $9.4 million of change in operating right of use assets, partially offset by a net decrease in operating assets and liabilities of $196.2 million. The net decrease in the operating assets and liabilities was primarily driven by an increase in accounts receivable and a decrease in accrued liabilities, partially offset by higher accounts payable and lower prepaid expenses and other assets.

Previous wording

Net cash provided by operating activities was $518.5 million for the six months ended June 30, 2023, primarily consisting of $75.8 million of net income, adjusted for certain non-cash items, which included $248.1 million of amortization, depreciation, and write-offs, $164.2 million of stock-based compensation expense, $6.9 million of change in operating right of use assets, and $6.6 million of amortization of debt issuance costs and discount, partially offset by a net decrease in operating assets and liabilities of $17.8 million. The net decrease in the operating assets and liabilities was primarily driven by a decrease in accounts receivable and deferred revenue, offset by lower accounts payable and operating lease liabilities.

Current wording

Net cash provided by operating activities was $717.5 million for the nine months ended September 30, 2023, primarily consisting of $184.5 million of net income, adjusted for certain non-cash items, which included $369.9 million of amortization, depreciation, and write-offs, $275.1 million of stock-based compensation expense, $11.7 million of change in operating right of use assets, and $9.7 million of amortization of debt issuance costs and discount, partially offset by a net decrease in operating assets and liabilities of $133.7 million. The net increase in the operating assets and liabilities was primarily driven by an increase in accounts receivable, other assets, and accrued liabilities and a decrease in prepaid expenses.

Previous wording

Net cash used in investing activities was $100.0 million for the six months ended June 30, 2024, primarily consisting of $76.3 million in purchases of non-marketable equity securities and $15.1 million related to earn-out payments for acquisitions of intangible assets.

Current wording

Net cash used in investing activities was $106.4 million for the nine months ended September 30, 2024, primarily consisting of $77.0 million in purchases of non-marketable equity securities and $18.3 million related to earn-out payments for acquisitions of intangible assets.

Previous wording

Net cash used in investing activities was $55.2 million for the six months ended June 30, 2023, primarily consisting of $38.4 million related to earn-out payments associated with asset acquisitions and $16.8 million in purchases of non-marketable equity securities, partially offset by $8.3 million in proceeds from the sale of assets.

Current wording

Net cash used in investing activities was $71.0 million for the nine months ended September 30, 2023, primarily consisting of $51.8 million related to earn-out payments associated with asset acquisitions and $16.9 million in purchases of non-marketable equity securities, partially offset by $8.3 million in proceeds from the sale of assets.

Previous wording

Net cash used in financing activities was $785.6 million for the six months ended June 30, 2024, primarily consisting of repurchases of stock under our share repurchase program of $752.2 million, principal repayments of debt of $677.9 million, and payments for withholding taxes related to the net share settlement of equity awards of $436.5 million, partially offset by proceeds from issuance of debt of $1,072.3 million and $19.1 million in proceeds from the exercise of stock options and purchase of ESPP shares.

Current wording

Net cash used in financing activities was $1,226.7 million for the nine months ended September 30, 2024, primarily consisting of repurchases of stock under our share repurchase program of $980.7 million, principal repayments of debt of $686.8 million, and payments for withholding taxes related to the net share settlement of equity awards of $644.4 million, partially offset by proceeds from issuance of debt of $1,072.3 million and $28.8 million in proceeds from the exercise of stock options and purchase of ESPP shares.

Previous wording

Net cash used in financing activities was $668.1 million for the six months ended June 30, 2023, primarily consisting of repurchases of stock under the repurchase program of $572.1 million, payments for withholding taxes related to the net share settlement of equity awards of $56.6 million, repayments of debt principal of $16.7 million, payments for license asset obligations of $15.3 million, and principal payments on finance leases of $10.9 million, partially offset by $8.6 million in proceeds from the exercise of stock options and purchase of ESPP shares.

Current wording

Net cash used in financing activities was $1,392.3 million for the nine months ended September 30, 2023, primarily consisting of repurchases of stock under the repurchase program of $1,153.6 million, repayments of debt principal of $490.5 million net of $210.3 million proceeds from issuance of debt, payments for withholding taxes related to the net share settlement of equity awards of $115.8 million, payments for license asset obligations of $15.3 million, and principal payments on finance leases of $16.2 million, partially offset by $185.0 million in proceeds from drawing down the revolving credit facility and $19.9 million in proceeds from exercise of stock options and purchase of ESPP shares.

Previous wording

During the six months ended June 30, 2024, we repurchased 13,466,397 shares of Class A common stock for an aggregate amount, including commissions and fees, of $752.2 million. For additional information, see Note 6 – Equity and Note 12 – Related Party Transactions of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

During the nine months ended September 30, 2024, we repurchased 16,081,408 shares of Class A common stock for an aggregate amount, including commissions and fees, of $981.3 million. In October 2024, our board of directors authorized an increase to our share repurchase program of up to $2.0 billion, which additional amount may be repurchased from time to time subject to a limitation in any fiscal quarter of the amount of our Free Cash Flow in the preceding fiscal quarter and compliance with applicable law and any contractual restrictions under our Credit Agreement (as defined below) or future agreements. For additional information, see Note 6 – Equity and Note 12 – Related Party Transactions of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

In March 2024, we drew down an additional $418.7 million from the revolving credit facility to fund certain repurchases under the Company's share repurchase program. As of March 31, 2024, the entire outstanding amount under the revolving credit facility of $603.7 million was repaid in full.

Current wording

In March 2024, we drew down an additional $418.7 million from the revolving credit facility to fund certain repurchases under the Company's share repurchase program. As of March 31, 2024, the entire outstanding amount under the revolving credit facility of $603.7 million was repaid in full, and the full amount of the revolving credit facility was available to be borrowed.

Previous wording

Except for scheduled payments from the ongoing business, there were no material changes to our commitments under contractual obligations since December 31, 2023.

Current wording

Except for scheduled payments from the ongoing business, there were no other material changes to our commitments under contractual obligations since December 31, 2023.

Previous wording

There have been no material changes to our critical accounting policies and estimates during the three months ended June 30, 2024, as compared to those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

There have been no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2024, as compared to those disclosed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.