Summary
AppLovin Corporation's 2021 10-K filing highlights a year of significant growth, with total revenue nearly doubling from $1.45 billion in 2020 to $2.79 billion in 2021. This impressive growth was driven by strong performance across both its Software Platform and Apps segments, with Business Revenue increasing by 88% and Consumer Revenue up by 97%. The company's strategic focus on its integrated "flywheel" model, combining core technologies, a software platform, and a portfolio of owned apps, continues to be a key driver of its success. While the company achieved profitability in 2021 with a net income of $35.3 million, an improvement from a net loss of $125.9 million in 2020, its sales and marketing expenses, particularly user acquisition costs, also rose significantly, indicating continued investment in growth. The company also detailed its ongoing strategic acquisition activities, including the acquisition of Adjust, and its plans for further expansion, including into the Connected TV (CTV) market with the pending acquisition of Wurl. Investors should note the company's substantial debt of $3.27 billion as of December 31, 2021, and its intention to repurchase up to $750.0 million of its Class A common stock.
Financial Highlights
54 data points| Revenue | $2.79B |
| Cost of Revenue | $988.10M |
| Gross Profit | $1.81B |
| R&D Expenses | $366.40M |
| Operating Expenses | $2.64B |
| Operating Income | $150.02M |
| Net Income | $35.00M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 324.84M |
| Shares Outstanding (Diluted) | 342.76M |
Key Highlights
- 1AppLovin reported a substantial increase in total revenue, growing 92% year-over-year to $2.79 billion in 2021, up from $1.45 billion in 2020.
- 2The Software Platform segment saw impressive growth, with Business Revenue increasing by 225% year-over-year, driven by strong performance in AppDiscovery and the acquisition of Adjust.
- 3Consumer Revenue also experienced significant growth, increasing by 97% year-over-year, primarily due to a rise in in-app purchase volume.
- 4The company achieved net income of $35.3 million in 2021, a significant turnaround from a net loss of $125.9 million in 2020.
- 5Sales and marketing expenses increased by 80% in 2021, largely driven by user acquisition costs, reflecting continued investment in growth.
- 6AppLovin made significant strategic acquisitions in 2021, including Adjust, and planned further expansion into the Connected TV market with the pending acquisition of Wurl.
- 7As of December 31, 2021, the company had substantial debt outstanding, totaling $3.27 billion, and announced a $750.0 million share repurchase program.