10-KPeriod: FY2024

AppLovin Corp Annual Report, Year Ended Dec 31, 2024

Filed February 27, 2025For Securities:APP

Summary

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 billion and net income reaching $1.6 billion. This growth was primarily driven by a significant 75% 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 million, 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.

Financial Highlights

53 data points
Beta

Revenue

$3.22B

83.9% Gross Margin

Net Income

$1.58B

49.0% Net Margin

EPS (Diluted)

$4.53

Total Assets

$5.87B

Cash & Equivalents

$697.03M

Free Cash Flow

$2.09B

Financial Statements
Beta
Revenue$3.22B
Cost of Revenue$520.61M
Gross Profit$2.70B
R&D Expenses$374.71M
Operating Expenses$1.31B
Operating Income$1.91B
Interest Expense$307.98M
Net Income$1.58B
EPS (Basic)$4.68
EPS (Diluted)$4.53
Shares Outstanding (Basic)336.92M
Shares Outstanding (Diluted)347.81M

Key Highlights

  • 1Total revenue grew 43% year-over-year to $4.7 billion for the year ended December 31, 2024.
  • 2Net income surged to $1.6 billion in 2024, a significant improvement from $357 million in 2023.
  • 3Advertising Revenue increased by 75% year-over-year, driven by strong performance in AppDiscovery.
  • 4The company announced a term sheet to sell its mobile gaming business for $900 million.
  • 5Adjusted EBITDA reached $2.7 billion, with an Adjusted EBITDA margin of 57.8%.
  • 6Free Cash Flow was $2.1 billion for the year, demonstrating strong operational cash generation.
  • 7The company continues to invest heavily in research and development, particularly in its AI-powered AXON advertising engine.

Frequently Asked Questions

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.

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.

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%.

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.