01—Abstract
Summary
Summary of the 10-Q filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
AppLovin Corporation reported a strong financial performance for the second quarter of 2024, with total revenue reaching $1.08 billiona, 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 millionb. 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 millionc. The company continues to generate significant free cash flow, highlighting operational efficiency and a healthy balance sheet.
The company repurchased $752.2 milliond 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.
02—Key points
Key Highlights
- Revenue increased by 44% year-over-year to $1.08 billion.
- Software Platform revenue grew by 75% to $711 million, driven by strong AppDiscovery performance.
- Apps segment revenue increased by 7% to $369 million.
- Net income surged to $310 million, compared to $80.4 million in the prior year's quarter.
- Adjusted EBITDA reached $601.2 million, an 80% increase year-over-year.
- The company repurchased $752.2 million of its Class A common stock in the first six months of the year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2024, AppLovin Corp kept $0.44.
- Revenue$711.0M100.0%
- Cost of revenue−$121.8M17.1%
- Gross profit$589.3M82.9%
- Operating costs−$204.8M28.8%
- Operating income$384.4M54.1%
- Interest, other & tax−$74.5M10.5%
- Net income$310.0M43.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 7, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $711.01M$750.16M | −5.2% |
| Cost of Revenue | $121.76M$258.57M | −52.9% |
| Gross Profit | $589.26M$491.59M | +19.9% |
| R&D Expenses | $99.12M$137.42M | −27.9% |
| Operating Expenses | $326.59M$618.84M | −47.2% |
| Operating Income | $384.42M$131.33M | +192.7% |
| Net Income | $309.97M$80.36M | +285.7% |
| EPS (Basic) | $0.92$0.22 | +318.2% |
| EPS (Diluted) | $0.89$0.22 | +304.5% |
| Shares Outstanding (Basic) | 335.68M356.96M | −6.0% |
| Shares Outstanding (Diluted) | 347.96M366.34M | −5.0% |
05—Questions
Frequently Asked Questions
What was AppLovin's revenue performance in Q2 2024?
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.
How did AppLovin's profitability change in Q2 2024?
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.
What is the company's approach to capital allocation and shareholder returns?
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.
What are the key growth drivers for AppLovin?
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.
06—Continue