Applovin Corporation · NASDAQ:APP
Applovin — Debt Investor Presentation (October 2021)
19 slides from Applovin's debt investor presentation, Oct 14, 2021
Slide 1: Lender Presentation October 2021
Exhibit 99.2 Confidential October 2021 1 Lender PresentationExhibit 99.2 Confidential October 2021 1 Lender Presentation
Slide 2: Disclaimer
Disclaimer Confidential Information This Presentation, the information contained herein and the materials accompanying it (collectively, this “Presentation”) is for informational purposes only and is being delivered to you for the sole purpose of your consideration and evaluation of a potential tran
Slide 3: Presenters: Adam Foroughi and Herald Chen
APPLOVIN Adam Foroughi Chief Executive Officer APPLOVIN Herald Chen President & Chief Financial Officer 3 3 Confidential | Lender PresentationAPPLOVIN Adam Foroughi Chief Executive Officer APPLOVIN Herald Chen President & Chief Financial Officer 3 3 Confidential | Lender Presentation
Slide 4: AppLovin Overview
AppLovin Overview Revenue and Adjusted EBITDA Growth Revenue Adjusted EBITDA $2,675 • High growth mobile marketing software company ($ millions) with a powerful ML-based set of integrated solutions 2018 to 2021 CAGR • First-party content includes 200+ mobile gaming +77% Revenue +39% Adjusted EBITDA
Slide 5: Financial snapshot
Financial snapshot $2.16B +97% $537M 25% LTM 2Q21: (1) REVENUE Y/Y ADJUSTED EBITDA ADJUSTED EBITDA (1) GROWTH MARGIN 2021 Guidance: $2.67B +84% $690M 26% (1) (from 1Q21) REVENUE Y/Y ADJUSTED EBITDA ADJUSTED EBITDA (1) GROWTH MARGIN (MID-POINT) (MID-POINT) 1) Adjusted EBITDA and Adjusted EBITDA margi
Slide 6: Strong growth across the business in 2Q21
Strong growth across the business in 2Q21 Revenue Net Income (Loss) Adjusted EBITDA ($ millions) ($ millions) ($ millions) +123% Y/Y $184 $669 $14 +97% Organic +202% Y/Y +27% Margin $299 $61 ($22) 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 • Organic growth represents revenue from existing Apps owned at the end o
Slide 7: Strong growth across the business in 2Q21
Strong growth across the business in 2Q21 Business Software Platform Revenue Apps Revenue ($ millions) ($ millions) +102% Y/Y +256% Y/Y SPECs $523 160 600 Consumer Apps $146 140 Business Apps 500 120 400 $88 100 $258 80 366 300 60 $41 200 40 193 100 20 115 0 0 2Q20 1Q21 2Q21 2Q20 2Q21 SPEC: Software
Slide 8: Our Software Solutions
Our Software Solutions Our leading marketing software is built on our AXON ML- engine which provides developers a powerful set of solutions to grow their mobile apps Targeting $1b of software revenue in 2022E GROW MONETIZE DRIVE RESULTS MEASURE Enable more users to Supercharge revenue from Jumpstart
Slide 9: Our First Party Content
Our First Party Content ~3K 11 16 200+ CONTENT APPS IN THE TOP 200 GLOBAL MOBILE DEVELOPERS GROSSING GAMES, US STUDIOS APPS 2Q21 9 9 9 Confidential | Lender Presentation
Slide 10: Summary of AppLovin's Acquisition of MoPub
Summary of AppLovin’s Acquisition of MoPub ● Definitive agreement to acquire Twitter’s MoPub business for $1.05 billion in cash Overview ● Highly strategic and accretive to AppLovin’s fast growing software platform ● Founded in 2010 and acquired by Twitter in 2013 MoPub ● Provides advertising soluti
Slide 11: Strategic Rationale
Strategic Accelerate Shift To In-App Bidding Rationale • Increases transparency of pricing and data • Improves efficiency by increasing access for buyers and sellers Improve ROI For Advertisers • Access to more publishers at market-efficient pricing • Extends our combined platform to include MoPub’s
Slide 12: Experienced Leadership
Experienced Leadership Strong partner for success MANAGEMENT TEAM Adam Foroughi Herald Chen Elena Arutunian Basil Shikin Katie Jansen Victoria Valenzuela CEO & Co-Founder President & CFO CAO CTO CMO CLO & Corp. Secretary Chair/Board Member Board Member BOARD OF DIRECTORS Eduardo Vivas Cathy Sun Crai
Slide 13: Attractive credit profile through growth, diversification and free cash flow
Attractive credit profile through growth, Steady Credit Track Record diversification and free cash flow. Last Twelve Months Ended (4) 2019 2020 2021 2021 PF ($ in millions) Q4 Q4 Q2 Q2 Term Loan / Revolver $1,209 $1,644 $1,785 $3,285 (1) Other Debt $27 $128 $159 $159 Total Debt $1,772 $1,944 $3,444
Slide 14: Sources & Uses / Transaction Summary
Sources & Uses / Transaction Summary ($ in millions) ($ in millions) As of Est. Pro Forma Sources of Funds $ % Pro Forma Capitalization 2Q21 Adj. 2Q21 New 7-year Term Loan B $1,500 100.0% $1,785 - $1,785 Term Loan B TOTAL $1,500 100.0% New 7-year Term Loan B $1,500 $1,500 Other Debt $159 - $159 $1,9
Slide 15: High-growth platform company in a large and growing TAM
High-growth platform company in a large and growing TAM Leading ML-based technology and mission critical software Scaled find ancial profile with high growth and strong adjusted EBITDA margins and free cash flow Strong organic growth complemented with investment opportunities Founder-led team drivin
Slide 16: Summary Terms – Senior Secured Credit Facility
Summary Terms – Senior Secured Credit Facility BORROWER AppLovin Corporation (the “Borrower”) GUARANTORS Each existing and future direct or indirect material wholly-owned U.S. restricted subsidiary of the Borrower SECURITY First Lien on all assets and capital stock of the Borrower and Guarantors FAC
Slide 17: Key transaction dates
October 2021 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 d 31 Key transaction dates th October 14 Lender Call st October 21 Commitments Due Shortly thereafter Close and Fund 17 17 Confidential | Lender PresentationOctober 2021 S M T W T F S 1 2 3 4
Slide 18: Q&A
Q&A 18 18 Confidential | Lender PresentationQ&A 18 18 Confidential | Lender Presentation
Slide 19: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation (1) ($ in millions) FY 2018 FY 2019 FY 2020 LTM 2Q21 2Q20 2Q21 Revenue 483.4 994.1 1,451.1 2,164.3 299.3 668.8 Net income/(loss) (260.0) 119.0 (125.9) (105.1 (21.7) 14.4 Interest expense and loss on settlement of debt 484.6 74.0 77.9 94.5 18.8 19.0 Other (income) expen