10-QPeriod: Q2 FY2024

AppLovin Corp Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 7, 2024For Securities:APP

Summary

AppLovin Corporation reported a strong financial performance for the second quarter of 2024, with total revenue reaching $1.08 billion, a significant 44% increase year-over-year. This growth was primarily driven by a robust performance in its Software Platform segment, which saw revenue surge by 75% to $711 million. The Apps segment also contributed positively, with a 7% increase in revenue to $369 million, supported by growth in both In-App Purchase and In-App Advertising revenue. Profitability saw a substantial improvement, with net income reaching $310 million, a nearly four-fold increase compared to the prior year's $80.4 million. Adjusted EBITDA also demonstrated strong growth, up 80% year-over-year to $601.2 million. The company continues to generate significant free cash flow, highlighting operational efficiency and a healthy balance sheet. The company repurchased $752.2 million in Class A common stock during the first six months of the year, demonstrating a commitment to returning capital to shareholders, while maintaining a substantial $500 million remaining under its repurchase authorization. AppLovin also continues to invest in innovation, particularly in its AI-powered advertising engine, AXON, positioning itself for future growth.

Financial Highlights

49 data points
Beta

Revenue

$711.01M

82.9% Gross Margin

Net Income

$309.97M

43.6% Net Margin

EPS (Diluted)

$0.89

Total Assets

$5.27B

Cash & Equivalents

$460.45M

Free Cash Flow

$454.53M

Financial Statements
Beta
Revenue$711.01M
Cost of Revenue$121.76M
Gross Profit$589.26M
R&D Expenses$99.12M
Operating Expenses$326.59M
Operating Income$384.42M
Net Income$309.97M
EPS (Basic)$0.92
EPS (Diluted)$0.89
Shares Outstanding (Basic)335.68M
Shares Outstanding (Diluted)347.96M

Key Highlights

  • 1Revenue increased by 44% year-over-year to $1.08 billion.
  • 2Software Platform revenue grew by 75% to $711 million, driven by strong AppDiscovery performance.
  • 3Apps segment revenue increased by 7% to $369 million.
  • 4Net income surged to $310 million, compared to $80.4 million in the prior year's quarter.
  • 5Adjusted EBITDA reached $601.2 million, an 80% increase year-over-year.
  • 6The company repurchased $752.2 million of its Class A common stock in the first six months of the year.

Frequently Asked Questions

AppLovin reported total revenue of $1.08 billion for the three months ended June 30, 2024, representing a substantial 44% increase compared to $750.2 million in the same period last year. The Software Platform segment was the primary driver, with revenue up 75% to $711 million, while the Apps segment saw a 7% increase to $369 million.

Profitability saw significant improvement. Net income more than tripled year-over-year, reaching $310 million for the quarter, up from $80.4 million in Q2 2023. Adjusted EBITDA also showed robust growth, increasing by 80% to $601.2 million from $333.5 million in the prior year period.

AppLovin actively returned capital to shareholders by repurchasing $752.2 million of its Class A common stock during the first six months of 2024. The company still has $500 million remaining under its authorized share repurchase program, indicating a continued focus on capital return.

The primary growth drivers are the strong performance of its Software Platform, particularly AppDiscovery, and continued growth in its Apps segment. The company also highlighted its ongoing investment in innovation, especially its AI-powered advertising engine AXON, as a key factor for future growth. Expansion into new verticals outside of gaming is also a strategic focus.