Summary
AppLovin Corporation (APP) reported strong financial performance for the fiscal year ended December 31, 2023. Total revenue increased by 17% year-over-year, reaching $3.28 billion. This growth was primarily driven by a substantial 76% increase in Software Platform revenue, which now represents 56% of total revenue. This segment's success was fueled by strong performance in AppDiscovery and MAX solutions, demonstrating the effectiveness of their AI-powered advertising engine, AXON. Conversely, the Apps segment experienced an 18% decline in revenue, largely due to a decrease in In-App Purchases (IAP) revenue, particularly from flagship games like Project Makeover and Matchington Mansion. Despite the decline in Apps revenue, the company achieved significant profitability, reporting a net income of $356.7 million, a substantial improvement from the net loss of $192.9 million in the prior year. Adjusted EBITDA also saw robust growth, increasing by 41% to $1.5 billion. The company also generated strong free cash flow of $1.04 billion, supporting its share repurchase program. AppLovin continues to focus on innovation in its Software Platform and expanding its market reach.
Financial Highlights
55 data points| Revenue | $3.28B |
| Cost of Revenue | $1.06B |
| Gross Profit | $2.22B |
| R&D Expenses | $592.39M |
| Operating Expenses | $2.63B |
| Operating Income | $648.21M |
| Interest Expense | $281.71M |
| Net Income | $356.71M |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $0.98 |
| Shares Outstanding (Basic) | 351.95M |
| Shares Outstanding (Diluted) | 362.59M |
Key Highlights
- 1Total revenue grew 17% year-over-year to $3.28 billion in 2023.
- 2Software Platform revenue surged by 76% to $1.84 billion, now representing 56% of total revenue.
- 3The Apps segment revenue declined by 18% to $1.44 billion.
- 4Net income turned positive at $356.7 million in 2023, compared to a net loss of $192.9 million in 2022.
- 5Adjusted EBITDA increased by 41% to $1.5 billion, with a corresponding margin improvement to 45.8%.
- 6Free Cash Flow was strong at $1.04 billion for the year.
- 7The company continued its share repurchase program, repurchasing $1.15 billion of Class A common stock during 2023.