Early Access

10-QPeriod: Q3 FY2024

AppLovin Corp Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 6, 2024For Securities:APP

Summary

AppLovin Corporation (APP) demonstrated robust financial performance in the third quarter of 2024, with significant year-over-year growth in revenue and profitability. Total revenue reached $1.20 billion, a 39% increase driven primarily by a strong performance in the Software Platform segment, which grew 66% year-over-year. The Apps segment also saw modest growth, contributing to the overall positive trend. Net income surged to $434.4 million, a substantial improvement from $108.6 million in the prior year's quarter, reflecting improved operational efficiencies and strong revenue growth. The company's operational efficiency is highlighted by a substantial increase in Adjusted EBITDA to $721.6 million, up from $419.3 million in Q3 2023, with an improved Adjusted EBITDA margin of 60.2%. This strong profitability has allowed AppLovin to continue investing in innovation and return capital to shareholders, evidenced by substantial share repurchases. The balance sheet remains solid, with a healthy cash position, though long-term debt has increased. The company's strategic focus on its Software Platform, particularly its AI-powered solutions, appears to be driving significant value for investors.

Financial Highlights

49 data points
Beta

Revenue

$835.19M

0.9% Gross Margin

Net Income

$434.42M

0.5% Net Margin

EPS (Diluted)

$1.25

Total Assets

$5.44B

Cash & Equivalents

$567.60M

Free Cash Flow

$550.70M

Financial Statements
Beta
Revenue$835.19M
Cost of Revenue$120.92M
Gross Profit$714.27M
R&D Expenses$80.78M
Operating Expenses$300.89M
Operating Income$534.30M
Net Income$434.42M
EPS (Basic)$1.29
EPS (Diluted)$1.25
Shares Outstanding (Basic)336.93M
Shares Outstanding (Diluted)348.23M

Key Highlights

  • 1Total revenue for the third quarter of 2024 increased by 39% year-over-year to $1.20 billion.
  • 2Software Platform revenue saw a significant 66% year-over-year increase to $835.2 million, driven by AppDiscovery performance.
  • 3Net income grew substantially to $434.4 million, a significant increase from $108.6 million in the prior year quarter.
  • 4Adjusted EBITDA reached $721.6 million, up 72% year-over-year, with an improved Adjusted EBITDA margin of 60.2%.
  • 5The company repurchased approximately $981.3 million of Class A common stock in the first nine months of 2024.
  • 6Cash and cash equivalents stood at $567.6 million as of September 30, 2024.
  • 7Despite growth, long-term debt increased to $3.47 billion from $2.91 billion at the end of 2023.

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