01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
AppLovin Corporation (APP) reported a strong financial performance for the year ended December 31, 2024, with total revenue increasing by 43% year-over-year to $4.7 billiona and net income reaching $1.6 billion.
This growth was primarily driven by a significant 75%b surge in Advertising Revenue, fueled by improvements in its AppDiscovery platform and increased installation volumes. The company also experienced a 3% increase in Apps Revenue, primarily from In-App Advertising (IAA). AppLovin continues to invest in its AI-powered AXON engine and expand its advertising solutions into new verticals like e-commerce and CTV.
A notable recent development was the announcement of a term sheet to sell its mobile gaming business for $900 millionc, which, if completed, would allow AppLovin to further focus on its software platform. The company's strong Adjusted EBITDA of $2.7 billion and robust free cash flow of $2.1 billion highlight its operational efficiency and financial health.
02—Key points
Key Highlights
- Total revenue grew 43% year-over-year to $4.7 billion for the year ended December 31, 2024.
- Net income surged to $1.6 billion in 2024, a significant improvement from $357 million in 2023.
- Advertising Revenue increased by 75% year-over-year, driven by strong performance in AppDiscovery.
- The company announced a term sheet to sell its mobile gaming business for $900 million.
- Adjusted EBITDA reached $2.7 billion, with an Adjusted EBITDA margin of 57.8%.
- Free Cash Flow was $2.1 billion for the year, demonstrating strong operational cash generation.
- The company continues to invest heavily in research and development, particularly in its AI-powered AXON advertising engine.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, AppLovin Corp kept $0.49.
- Revenue$3.22B100.0%
- Cost of revenue−$520.6M16.1%
- Gross profit$2.70B83.9%
- Operating costs−$792.5M24.6%
- Operating income$1.91B59.3%
- Interest, other & tax−$331.0M10.3%
- Net income$1.58B49.0%
Where FY2024 revenue went
$3.22B- Net income: $1.58B, 49% of revenue
- Cost of revenue: $520.6M, 16% of revenue
- Other operating costs: $417.8M, 13% of revenue
- R&D: $374.7M, 12% of revenue
- Interest, other & tax: $331.0M, 10% of revenue
Kept 49% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $3.22B$1.84B | +75.1% |
| Cost of Revenue | $520.61M$356.61M | +46.0% |
| Gross Profit | $2.70B$1.49B | +82.0% |
| R&D Expenses | $374.71M$333.78M | +12.3% |
| Operating Expenses | $1.31B$1.07B | +22.8% |
| Operating Income | $1.91B$772.41M | +147.4% |
| Interest Expense | $307.98M$281.71M | +9.3% |
| Net Income | $1.58B$357.00M | +342.6% |
| EPS (Basic) | $4.68$1.01 | +363.4% |
| EPS (Diluted) | $4.53$0.98 | +362.2% |
| Shares Outstanding (Basic) | 336.92M351.95M | −4.3% |
| Shares Outstanding (Diluted) | 347.81M362.59M | −4.1% |
05—Questions
Frequently Asked Questions
What was AppLovin's revenue performance in 2024?
AppLovin reported a 43% year-over-year increase in total revenue for the year ended December 31, 2024, reaching $4.7 billion. This growth was largely driven by a substantial 75% increase in Advertising Revenue.
What is the significance of the announced sale of the mobile gaming business?
AppLovin announced a term sheet for the sale of its mobile gaming business for $900 million. This strategic move, if completed, would allow the company to concentrate its resources and efforts on its core advertising software platform business.
How is the company's profitability trending?
The company has shown significant improvement in profitability, with net income reaching $1.6 billion in 2024, compared to $357 million in 2023. Adjusted EBITDA also saw robust growth, reaching $2.7 billion in 2024, with a strong Adjusted EBITDA margin of 57.8%.
What is AppLovin's strategy for future growth?
AppLovin's strategy includes continued investment in innovation, particularly its AI-powered AXON advertising engine, expanding its advertising solutions into new verticals like e-commerce and CTV, retaining and growing existing clients, adding new clients globally, and pursuing strategic partnerships and acquisitions.
06—Continue