Applovin Corporation

Greetings. Welcome to APLEVN-Corp fourth quarter and full year 2021 earning results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Ryan Gee, Head of Investor Relations and Strategic Finance for Applevin. Thank you. You may begin.

Thank you, Sherry, and welcome, everyone, to Applevin's earnings call for the quarter ended December 31st, 2021. Joining me today to discuss our results are our co-founder, CEO, and chairperson, Adam Ferroghi, and our president, Chief Financial Officer, Harold Chen. Please note our SEC filings, earnings release, and shareholder letter discussing our 4Q and 2021 performance are available at investors.applovin.com. During today's call, we may be making forward-looking statements regarding future events and the future financial performance of the company. These statements are based on assumptions and beliefs, and we assume no obligation to update them. Actual results may differ materially from those results predicted here today. Please review the risk factors in our most recently filed Form 10Q, as well as elsewhere in our SEC filings for further clarification. We will also be discussing our non-GAAP financial measures. Reconciliations of GAAP and non-GAAP financial measures are included in our earnings press release, our shareholder letter, our 10Q, and our 10K to be filed shortly. Please be sure to review those reconciliations, as the non-GAAP measures are not intended to be a substitute for or superior to our GAAP results. This conference call is being recorded and a replay will be available on our IR website shortly. With that, I'll now turn it over to Adam.

Thanks, Ryan, and thank you all for joining us today. I'm pleased to report record fourth quarter financial results. I'm even more excited by where our software business is heading and our potential in 2022 and beyond. I want to highlight two reasons why we confidently raised our Software Revenue Outlook for 2022 and why we believe we can grow to approximately $2 billion in software revenue in 2023. First, the compounding of our software platform business exiting 2021. It's hard to fathom, but we have nearly three times as many clients using our solution to grow their businesses today versus last year. And our software platform revenue was larger in the fourth quarter than for all of 2020 and grew 27% quarter over quarter. This marked our third consecutive quarter of double-digit sequential growth and significantly higher growth than all other industry peers. App Discovery continues to perform very well and consistently delivers against our clients' ROI goals. That is why we had over 200% net dollar-based revenue retention for our existing clients, which provides a solid foundation for a robust organic growth rate to persist in 22 and beyond. Also consider our sales force is still ramping and that Axon just turned one year old last quarter. Second, the integration of MoPub. We've seen amazing progress to date integrating MoPub features, publishers, and demand partners. The number of apps monetizing with Max is up over 60% since we announced the deal. And over 90% of the largest publishers for MoPub are actively integrating our unified offering. The Apple Oven Exchange will enable many new DSPs and bidders, to work with Max. These demand partners generated the vast majority of MoPub's revenue, but they didn't have direct access to Max Publishers before. As they come online through a unified platform, which will be over twice as big as MoPub, we expect these partnerships to deliver a compelling revenue opportunity in 22 and beyond. We believe to operate a fast-growing business successfully over the long term, we need to be executing against our current opportunities and also be building products that can be catalysts for growth years into the future. I'm very proud of our team because in addition to executing on all of our current initiatives, we're building products in big markets, such as blockchain and NFTs for mobile content, marketing solutions for mobile OEMs and carriers, and enabling performance marketing in the fast-growing CTV market. These categories have similarities to the business and technologies we've already built, and success in any one of these can meaningfully expand our business. We look forward to sharing our progress on these initiatives and others as they develop. With that, let me turn it over to Harold to provide color on our numbers and outlook.