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10-QPeriod: Q3 FY2021

AppLovin Corp Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 12, 2021For Securities:APP

Summary

AppLovin Corporation's Q3 2021 10-Q filing reveals a period of robust growth and significant strategic activity. The company demonstrated strong top-line performance, with total revenue nearly doubling year-over-year to $727.0 million, driven by substantial increases in both Business Revenue (especially from the Software Platform) and Consumer Revenue. This growth was fueled by strong performance in key metrics such as installations and price per installation for the Software Platform, and increased purchase volumes for Consumer Revenue. The company also highlighted its strategic expansion through acquisitions, notably the acquisition of Adjust GmbH, which significantly contributed to the Software Platform's revenue growth. AppLovin's financial position strengthened considerably, with cash and cash equivalents growing to $1.05 billion, bolstered by the proceeds from its Initial Public Offering (IPO) in April 2021. The company's investment in sales and marketing, and research and development, underscore its commitment to future growth and innovation within the mobile app ecosystem.

Financial Statements
Beta
Revenue$726.95M
Cost of Revenue$254.05M
Gross Profit$472.90M
R&D Expenses$108.52M
Operating Expenses$681.90M
Operating Income$45.05M
Net Income$178K
Shares Outstanding (Basic)368.43M
Shares Outstanding (Diluted)384.32M

Key Highlights

  • 1Total revenue surged by 90% year-over-year to $727.0 million, driven by strong growth across both Business and Consumer revenue segments.
  • 2Business Revenue from the Software Platform experienced a significant 385% increase year-over-year, largely attributed to the acquisition of Adjust and strong performance in AppDiscovery.
  • 3Consumer Revenue also showed robust growth, increasing by 80% year-over-year due to higher in-app purchase volumes.
  • 4The company's cash and cash equivalents increased significantly to $1.05 billion, reflecting strong operating cash flow and proceeds from its recent IPO.
  • 5Investments in Sales & Marketing and Research & Development increased substantially, indicating a strategic focus on user acquisition, platform enhancement, and new app development.
  • 6AppLovin continues to expand its platform and offerings, evidenced by the pending acquisition of MoPub from Twitter for approximately $1.05 billion.

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