AppLovin Corp

Previous wording

For the three months ended March 31, 2024, our revenue increased 48% year-over-year to $1.06 billion, from $715.4 million in the three months ended March 31, 2023. We generated net income of $236.2 million for the three months ended March 31, 2024 and net loss of $4.5 million in the comparative period in 2023. We generated Adjusted EBITDA of $548.8 million and $273.7 million for the three months ended March 31, 2024 and 2023, respectively. Additionally, our net cash provided by operating activities was $392.8 million and $288.7 million in the three months ended March 31, 2024 and 2023, respectively. We generated Free Cash Flow of $387.6 million and $283.1 million for the three months ended March 31, 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 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.

Previous wording

We collect revenue from our Software Platform and our Apps. During the three months ended March 31, 2024, Software Platform Revenue represented 64% of total revenue and Apps Revenue represented 36% of total revenue.

Current 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.

Previous wording

We report our operating results through two reportable segments: Software Platform and Apps. Prior to the second quarter of 2022, we had a single operating and reportable segment.

Current wording

We report our operating results through two reportable segments: Software Platform and Apps.

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

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. 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

Software Platform clients use MAX to optimize purchases of app advertising inventory. The MAX tool provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. As more advertising networks move to in-app bidding monetization, we expect growth in the adoption of, and revenue from, MAX.

Current wording

Software Platform clients use MAX to optimize purchases of app advertising inventory. The MAX tool provides insights to manage against key performance indicators, understand the long-term value of users, and help manage profitability. Revenue from MAX is generated based on a percentage of client spend. As more advertising networks move to in-app real-time bidding, we expect growth in the adoption of, and revenue from, MAX.

Previous wording

Software Platform clients use Wurl's CTV platform to distribute streaming video, maximize advertising revenue, and acquire and retain viewers or subscribers. Revenue from Wurl is primarily generated from content companies, typically on a usage-based model.

Current wording

Software Platform clients use Wurl's connected TV ("CTV") platform to distribute streaming video, maximize advertising revenue, and acquire and retain viewers or subscribers. Revenue from Wurl is primarily generated from content companies, typically on a usage-based model.

Previous wording

During the three months ended March 31, 2024, we had an average of 1.8 million Monthly Active Payers ("MAPs") across our portfolio of Apps. Over that period, we had an Average Revenue Per Monthly Active Payer ("ARPMAP") of $48. See “Key Metrics” below for additional information on how we calculate MAPs and ARPMAP.

Current wording

During the three months ended June 30, 2024, we had an average of 1.6 million Monthly Active Payers ("MAPs") across our portfolio of Apps. Over that period, we had an Average Revenue Per Monthly Active Payer ("ARPMAP") of $52. See “Key Metrics” below for additional information on how we calculate MAPs and ARPMAP.

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. Some of our Apps do not utilize such third-party attribution partners, and therefore our MAPs figure for any period does not capture every user that completed an IAP on our Apps. We estimate that our counted MAPs generated approximately 99% of our IAP Revenue during the three months ended March 31, 2024, and as such, management believes that MAPs is still 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 June 30, 2024, and as such, management believes that MAPs is a useful metric to measure the engagement and monetization potential of our games.

Previous wording

We define Adjusted EBITDA for a particular period as net income (loss) before interest expense, other income, net (excluding certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for stock-based compensation expense, acquisition-related expense and transaction bonus, publisher bonuses, MoPub acquisition transition services, restructuring costs, impairment and loss in connection with the sale 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, 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.

Previous wording

The following table provides our Adjusted EBITDA and Adjusted EBITDA margin for the three months ended March 31, 2024 and 2023, and a reconciliation of net income (loss) to Adjusted EBITDA:

Current 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:

Previous wording

The following table provides our Free Cash Flow for the three months ended March 31, 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 six months ended June 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. Our investments will also allow us to enter new verticals outside of gaming. 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 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.

Previous wording

Our future success depends in part on our ability to acquire new clients. During the three months ended March 31, 2024, 41% 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 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.

Previous wording

We continue to explore strategic partnership opportunities related to our Software Platform, and the expansion of the markets it serves and we may from time to time evaluate strategic acquisitions opportunistically. From the beginning of 2018 through March 31, 2024, we have invested approximately $4.1 billion in 33 strategic acquisitions and partnerships with mobile app developers and for technologies to enhance our Software Platform including the acquisition of MAX in 2018, Adjust in April 2021, MoPub in January 2022, and Wurl in April 2022. We believe our future results of operations will be affected by our ability to continue to identify and execute such transactions that are accretive to our growth and profitability.

Current wording

We continue to explore strategic partnership opportunities related to our Software Platform, and the expansion of the markets it serves and we may from time to time evaluate strategic acquisitions and partnerships opportunistically. From the beginning of 2018 through June 30, 2024, we have invested approximately $4.1 billion in 33 strategic acquisitions and partnerships with mobile app developers and for technologies or relationships to enhance our Software Platform including the acquisition of MAX in 2018, Adjust in April 2021, MoPub in January 2022, and Wurl in April 2022. We believe our future results of operations will be affected by our ability to continue to identify and execute such transactions that are accretive to our growth and profitability.

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 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.

Previous wording

General and administrative. General and administrative expenses consist primarily of costs incurred to support our business, including personnel-related expenses such as salaries, employee benefits, and stock-based compensation for employees engaged in finance, accounting, legal, human resources and administration, professional services fees for legal, accounting, recruiting, and administrative services (including acquisition-related expenses), insurance, travel, and allocated facilities and information technology costs.

Current wording

General and administrative. General and administrative expenses consist primarily of costs incurred to support our business, including personnel-related expenses such as salaries, employee benefits, and stock-based compensation for employees engaged in finance, accounting, legal, human resources and administration, professional services fees for legal, accounting, recruiting, and administrative services (including transaction-related expenses), insurance, travel, and allocated facilities and information technology costs.

Previous wording

Comparison of Our Results of Operations for the Three Months Ended March 31, 2024 and 2023

Current wording

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

Previous wording

For the three months ended March 31, 2024, our Software Platform Revenue increased by $323.6 million, or 91%, compared to the same period in the prior year primarily due to improved AppDiscovery performance, where net revenue per installation increased 5% and the volume of installations increased 87%. We do not recognize Software Platform Revenue from transactions with our Owned Studios and Partner Studios.

Current 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.

Previous wording

For the three months ended March 31, 2024, our Apps Revenue increased by $19.1 million, or 5%, from the prior year period. For the three months ended March 31, 2024, our IAP Revenue from Apps increased by $7.9 million, or 3%, from the prior year period, due primarily to a 4% increase in the volume of in-app purchases, partially offset by a 1% decrease in price per in-app purchase. Our IAA Revenue from Apps increased by $11.2 million, or 10%, from the prior year period, due primarily to a 113% increase in the volume of advertising impressions, partially offset by a 48% decrease in price per advertising impression.

Current 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.

Previous wording

Cost of revenue in the three months ended March 31, 2024 increased by $32.2 million, or 12%, compared to the same period in the prior year, due primarily to an increase of $35.5 million in expenses associated with operating our network infrastructure driven by the growth in our Software Platform operations, offset by a decrease of $8.6 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 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.

Previous wording

General and administrative expenses in the three months ended March 31, 2024 decreased by $2.2 million, or 5%, compared to the same period in the prior year, due primarily to a decrease of $2.6 million in personnel-related expenses primarily related to a prior year restructuring and a decrease of $1.3 million in acquisition-related expenses.

Current 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.

Previous wording

Sales and marketing expenses in the three months ended March 31, 2024 increased by $23.7 million, or 12%, compared to the same period in the prior year, due primarily to an increase in user acquisition costs of $17.1 million and an increase of $3.0 million in personnel-related expenses related to an increase in stock-based compensation expense.

Current 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.

Previous wording

Research and development expenses in the three months ended March 31, 2024 increased by $10.5 million, or 7%, compared to the same period in the prior year, primarily due to an increase of $18.0 million in personnel-related expenses primarily related to an increase in stock-based compensation expense, partially offset by a decrease of $6.0 million due to the disposal of certain assets within our Apps segment in the prior year period.

Current 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.

Previous wording

In the three months ended March 31, 2024, other income, net decreased by $7.5 million, or 75%, compared to the same period in the prior year. The decrease was primarily due to third-party costs of $6.2 million related to the modification of debt and a decrease in interest income of $4.4 million due to a reduced cash and cash equivalents balance, offset by a prior year period impairment of non-marketable equity securities of $5.0 million.

Current wording

In the six months ended June 30, 2024, other income, net decreased by $14.1 million, or 55%, compared to the same period in the prior year. The decrease was primarily due to a decrease in interest income of $10.5 million due to a reduction in cash and cash equivalents and third-party costs of $6.7 million related to the modification of debt, offset by a prior year period impairment of non-marketable equity securities of $5.0 million.

Previous wording

In the three months ended March 31, 2024, the provision for income taxes increased by $30.6 million compared to the same period in the prior year. The increase was primarily driven by higher pre-tax income from business operations during the three months ended March 31, 2024, and higher global intangible low-taxed income, partially offset by foreign income taxed at different rates, higher foreign tax credits generated, higher foreign-derived intangible income deduction, and higher stock-based compensation benefit.

Current wording

In the six months ended June 30, 2024, the provision for income taxes increased by $30.5 million compared to the same period in the prior year. The increase was primarily driven by higher pre-tax income from business operations and higher global intangible low-taxed income, partially offset by foreign income taxed at different rates, higher foreign tax credits generated, higher foreign-derived intangible income deduction, and higher stock-based compensation benefit during the six months ended June 30, 2024.

Previous wording

The $273.3 million, or 125%, increase in Software Platform Adjusted EBITDA for the three months ended March 31, 2024 was primarily driven by an increase in Software Platform revenue of $323.6 million, partially offset by an increase of $35.5 million in expenses associated with operating our network infrastructure driven by the growth in our operations.

Current 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.

Previous wording

The $1.7 million, or 3%, increase in Apps Adjusted EBITDA for the three months ended March 31, 2024 was primarily driven by an increase in Apps Revenue of $19.1 million, partially offset by an increase of $17.1 million in user acquisition costs and an increase of $2.6 million in third-party payment processing fees related to in-app purchases.

Current wording

The $21.8 million, or 19%, increase in Apps Adjusted EBITDA for the six months ended June 30, 2024 was primarily driven by an increase in Apps Revenue of $44.1 million, partially offset by an increase of $10.9 million in user acquisition costs, an increase of $5.4 million in personnel-related costs, and an increase of $3.3 million in third-party payment processing fees related to in-app purchases.

Previous wording

Since inception, we have financed our operations primarily through payments received from clients using our Software Platform and advertising on our Apps, and from user IAPs from our Apps, and 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 March 31, 2024, we had cash and cash equivalents of $436.3 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 June 30, 2024, we had cash and cash equivalents of $460.4 million.

Previous wording

Net cash provided by operating activities was $392.8 million for the three months ended March 31, 2024, primarily consisting of $236.2 million of net income, adjusted for certain non-cash items, which included $112.7 million of amortization, depreciation, and write-offs and $95.3 million of stock-based compensation expense, partially offset by a net increase in operating assets and liabilities of $59.9 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 $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.

Previous wording

Net cash provided by operating activities was $288.7 million for the three months ended March 31, 2023, primarily consisting of a $4.5 million net loss, adjusted for certain non-cash items, which included $128.2 million of amortization, depreciation, and write-offs, $83.0 million of stock-based compensation expense, $3.5 million of change in operating right of use assets, $3.3 million of amortization of debt issuance costs and discount, and $2.3 million of net unrealized losses from fair value remeasurements, partially offset by a net increase in operating assets and liabilities of $72.9 million. The net increase in the operating assets and liabilities was primarily driven by a decrease in accounts receivable and increases in accounts payable, accrued and other liabilities and deferred revenue.

Current 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.

Previous wording

Net cash used in investing activities was $31.6 million for the three months ended March 31, 2024, primarily consisting of $28.3 million in purchases of non-marketable equity securities and $2.5 million in capitalized software development costs.

Current 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.

Previous wording

Net cash used in investing activities was $13.0 million for the three months ended March 31, 2023, primarily consisting of $16.8 million in purchases of non-marketable equity securities, and $2.2 million related to asset acquisitions, partially offset by $8.3 million in proceeds from the sale of assets.

Current 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.

Previous wording

Net cash used in financing activities was $424.6 million for the three months ended March 31, 2024, primarily consisting of repurchases of stock under our share repurchase program of $752.2 million and payments for withholding taxes related to the net share settlement of restricted stock units of $80.1 million, partially offset by proceeds from issuance of debt of $1,072.3 million net of principal repayments of debt of $669.0 million and $9.8 million in proceeds from the exercise of stock options.

Current 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.

Previous wording

Net cash used in financing activities was $111.4 million for the three months ended March 31, 2023, primarily consisting of repurchases of stock under the repurchase program of $64.9 million, payments for withholding taxes related to the net share settlement of restricted stock units of $19.2 million, payments for license asset obligations of $15.3 million, repayments of debt principal of $8.3 million, principal payments on finance leases of $5.4 million, and payments for deferred acquisition costs of $1.2 million, partially offset by $2.9 million proceeds from the exercise of stock options.

Current 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.

Previous wording

During the three months ended March 31, 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 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.

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. KKR Corporate Lending (CA) LLC, an affiliate of KKR Denali Holdings L.P. (“KKR Denali”) which owns more than 10% of the Company's voting interests, has provided revolving credit commitments in the amount of $15.0 million under our revolving credit facility.

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.

Previous wording

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