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Net Income (Loss) Per Share | 9 Months Ended | 12 Months Ended
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Sep. 30, 2021 | Dec. 31, 2020
Earnings Per Share [Abstract] |  |
Net Income (Loss) Per Share | 11. Net Income (Loss) Per Share Basic and diluted net income (loss) per share attributable to common stockholders is computed in conformity with the two-class method required for participating securities. The Company considers its convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested stock options and unvested restricted stock awards to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to convertible preferred stock, options exercised in exchange for nonrecourse promissory notes, early exercised unvested common stock options and unvested restricted stock awards as the holders of these instruments do not have a contractual obligation to share in the Company’s losses. Net income is attributed to common stockholders and participating securities based on their participation rights. Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options. The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |
Basic EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to AppLovin |  | $ | (89,688 | ) |  | $ | 178 |  |  | $ | (106,415 | ) |  | $ | 4,080 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income attributable to convertible preferred stock |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (499 | )
Income attributable to options exercised via promissory notes |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (49 | )
Income attributable to unvested early exercised options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (13 | )
Income attributable to unvested RSA’s |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7 | )
Net income (loss) attributable to common stock—Basic |  | $ | (89,688 | ) |  | $ | 177 |  |  | $ | (106,415 | ) |  | $ | 3,512 |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average shares used in computing net income (loss) per share—Basic |  |  | 214,638,272 |  |  |  | 368,427,532 |  |  |  | 212,998,263 |  |  |  | 309,353,304 |
Net income (loss) per share attributable to common stock—Basic |  | $ | (0.42 | ) |  | $ | 0.00 |  |  | $ | (0.50 | ) |  | $ | 0.01 |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |
Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to AppLovin |  | $ | (89,688 | ) |  | $ | 178 |  |  | $ | (106,415 | ) |  | $ | 4,080 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income attributable to convertible preferred stock |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (475 | )
Income attributable to options exercised via promissory notes |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (47 | )
Income attributable to unvested early exercised options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (12 | )
Income attributable to unvested RSA’s |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7 | )
Net income (loss) attributable to common stock—Diluted |  | $ | (89,688 | ) |  | $ | 177 |  |  | $ | (106,415 | ) |  | $ | 3,539 |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average shares used in computing net income (loss) per share—Basic |  |  | 214,638,272 |  |  |  | 368,427,532 |  |  |  | 212,998,263 |  |  |  | 309,353,304 |
Weighted-average dilutive stock options, RSUs, warrants and other convertible securities |  |  | — |  |  |  | 15,897,253 |  |  |  |  |  |  |  | 18,073,488 |
Weighted-average shares used in computing net income (loss) per share—Diluted |  |  | 214,638,272 |  |  |  | 384,324,785 |  |  |  | 212,998,263 |  |  |  | 327,426,792 |
Net income (loss) per share attributable to common stock—Diluted |  | $ | (0.42 | ) |  | $ | 0.00 |  |  | $ | (0.50 | ) |  | $ | 0.01 |
The following table presents the forms of antidilutive potential common shares:
|  | As of September 30, |
|  | 2020 |  |  | 2021 |
Convertible preferred stock |  |  | 109,090,908 |  |  |  | — |
Stock options exercised for promissory notes |  |  | 7,862,499 |  |  |  | 2,884,999 |
Shares issuable upon conversion of Athena convertible security |  |  | — |  |  |  | 334,946 |
Early exercised stock options |  |  | 19,800 |  |  |  | 879,600 |
Unvested RSAs |  |  | 1,908,687 |  |  |  | 242,316 |
Stock options |  |  | 20,439,544 |  |  |  | 23,736 |
Unvested RSUs |  |  | — |  |  |  | 2,828 |
ESPP |  |  | — |  |  |  | 223,448 |
Total antidilutive potential common shares |  |  | 139,321,438 |  |  |  | 4,591,873 |
| 14. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders for the years ended December 31, 2018, 2019 and 2020 (in thousands, except share and per share data):
|  | Year Ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2020 |
Basic EPS |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (259,995 | ) |  | $ | 119,040 |  |  | $ | (125,187 | )
Less: |  |  |  |  |  |  |  |  |  |  |  |
Income attributable to convertible preferred stock |  |  | — |  |  |  | (39,500 | ) |  |  | — |
Income attributable to options exercises by promissory notes |  |  | — |  |  |  | (1,088 | ) |  |  | — |
Income attributable to unvested early exercised options |  |  | — |  |  |  | (39 | ) |  |  | — |
Income attributable to unvested RSA’s |  |  | — |  |  |  | (2,037 | ) |  |  | — |
Net income (loss) attributable to common stock |  | $ | (259,995 | ) |  | $ | 76,376 |  |  | $ | (125,187 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average shares used in computing net income (loss) per share: Basic |  |  | 189,533,630 |  |  |  | 210,937,147 |  |  |  | 214,936,545 |
Net income (loss) per share attributable to common stock: Basic |  | $ | (1.37 | ) |  | $ | 0.36 |  |  | $ | (0.58 | )
Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  | $ | (259,995 | ) |  | $ | 119,040 |  |  | $ | (125,187 | )
Less: |  |  |  |  |  |  |  |  |  |  |  |
Income attributable to convertible preferred stock |  |  | — |  |  |  | (39,329 | ) |  |  | — |
Income attributable to options exercises by promissory notes |  |  | — |  |  |  | (1,083 | ) |  |  | — |
Income attributable to unvested early exercised options |  |  | — |  |  |  | (39 | ) |  |  | — |
Income attributable to unvested RSA’s |  |  | — |  |  |  | (2,028 | ) |  |  | — |
Net income (loss) attributable to common stock |  | $ | (259,995 | ) |  | $ | 76,561 |  |  | $ | (125,187 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |
Weighted-average shares used in computing net income (loss) per share: Basic |  |  | 189,533,630 |  |  |  | 210,937,147 |  |  |  | 214,936,545 |
Weighted-average dilutive stock options |  |  | — |  |  |  | 1,428,282 |  |  |  | — |
Weighted-average shares used in computing net income (loss) per share: Diluted |  |  | 189,533,630 |  |  |  | 212,365,429 |  |  |  | 214,936,545 |
Net income (loss) per share attributable to common stock: Diluted |  | $ | (1.37 | ) |  | $ | 0.36 |  |  | $ | (0.58 | )
The following table presents the forms of antidilutive potential common shares:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2020 |
Convertible preferred stock |  |  | 109,090,908 |  |  |  | 109,090,908 |
Options exercised for promissory notes |  |  | 5,760,000 |  |  |  | 8,022,499 |
Early exercised options |  |  | 11,337 |  |  |  | 19,800 |
Unvested RSAs |  |  | 3,924,414 |  |  |  | 1,236,771 |
Options |  |  | 7,439,700 |  |  |  | 20,754,985 |
The table above does not include the convertible security issued in 2020. This security is convertible into the Company’s common stock starting 61 days following the effective date of an initial public offering of the Company. The convertible security may be converted, at the option of the holder, into a number of shares of the Company’s Class A Common Stock equal to $40.0 million divided by a conversion price equal to (i) the preceding 20-day volume-weighted average trading price per share of Class A Common Stock multiplied by (ii) 0.8.

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