APP 8-K Current Reports

AppLovin Corp 8-K Report, Financial Results (Aug 5, 2026)

AppLovin (APP) reported strong second-quarter 2026 results, with revenue of $1.92 billion, up 53% year over year from $1.26 billion, and net income of $1.27 billion, up 55%. Adjusted EBITDA rose 58% to $1.61 billion, and the Adjusted EBITDA margin was 84%, up from 81% a year earlier. Operating income reached $1.49 billion versus $958 million, and basic and diluted EPS were $3.77 and $3.76. For the first half of 2026, revenue grew 56% to $3.77 billion and net income from continuing operations grew 65% to $2.47 billion. Growth was strong at both the top and bottom lines, though part of the Q2 earnings uplift came from $62 million of other income, net, and the effective tax rate rose to about 16% from about 13%. Cash generation remained robust. Operating cash flow was $869 million and Free Cash Flow was $863 million in the quarter. Cash and equivalents rose to $3.05 billion against $3.52 billion of long-term debt. Management repurchased and withheld 1.1 million shares for $551 million in Q2, and shares outstanding fell to 335 million from 338 million at year-end 2025. Cash income taxes paid rose sharply to $640 million in the first half from $101 million, a meaningful headwind to cash conversion that investors should monitor. R&D expense more than doubled year over year to $100 million, while G&A declined. For Q3 2026, AppLovin guided to revenue of $2.055 to $2.085 billion and Adjusted EBITDA of $1.710 to $1.740 billion, implying an 83% Adjusted EBITDA margin. The guidance midpoint implies roughly 8% sequential revenue growth. The company did not provide GAAP reconciliations for forward Adjusted EBITDA, citing variability in stock-based compensation. The results are presented under Item 2.02 and furnished, not filed, under Section 18 of the Exchange Act.

Aug 5, 2026 8-K

AppLovin Corp 8-K Report, Shareholder Vote Results (Jun 5, 2026)

AppLovin Corporation (APP) filed an 8-K on June 5, 2026, detailing the results of its Annual Meeting of Stockholders held on June 3, 2026. The meeting focused on routine corporate governance matters, with all five proposals presented receiving significant support from stockholders, with one exception. The election of directors, ratification of Deloitte & Touche LLP as the independent auditor, and advisory approval of executive compensation all passed overwhelmingly, indicating continued confidence in the company's leadership and financial oversight. A notable outcome was the approval of an amendment to the Certificate of Incorporation to provide for officer exculpation, a measure often sought to protect officers from personal liability in certain situations, aligning with Delaware law. Conversely, a stockholder proposal seeking enhanced disclosure of voting results by share class was not approved, suggesting that the current disclosure practices are deemed sufficient by the majority of shareholders.

Jun 5, 2026 8-K

Leadership ChangesRegulation FDExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (May 6, 2026)

AppLovin reported first quarter 2026 results that showed strong top-line and profitability growth. Revenue rose 59% year over year to $1.842 billion from $1.159 billion, and net income more than doubled to $1.206 billion from $576 million (up 109%). Income from continuing operations rose 67% to $1.206 billion from $724 million, and Adjusted EBITDA increased 66% to $1.557 billion, with Adjusted EBITDA margin of roughly 85% versus 81% a year earlier. Note that the prior-year net income figure includes a $147 million loss from discontinued operations, so the 109% net income growth is flattered by the absence of that drag; the continuing-operations comparison is the cleaner view of underlying momentum. Cash generation was particularly strong. Operating cash flow was $1.29 billion and Free Cash Flow was $1.29 billion, compared with $826 million of Free Cash Flow a year earlier. Diluted EPS was $3.56 versus $1.67 in the prior year's diluted EPS (which included discontinued operations), or $2.10 from continuing operations. Management spent about $1.0 billion repurchasing and withholding 2.2 million Class A shares during the quarter, and shares outstanding declined to 336 million from 338 million at year-end 2025. Cash rose to $2.76 billion, while long-term debt was essentially flat at $3.51 billion. Looking ahead, management guided second quarter 2026 revenue to $1.915–$1.945 billion and Adjusted EBITDA to $1.615–$1.645 billion, implying an Adjusted EBITDA margin of 84%–85%. Investors should weigh the strong margins and cash flow against the company's reliance on non-GAAP metrics, the company's decision not to provide GAAP reconciliations for forward guidance, and the rise in accrued liabilities and accounts receivable, which grew faster than revenue on a sequential basis. Accrued and other current liabilities jumped to $797 million from $587 million at year-end.

May 6, 2026 8-K

AppLovin Corp 8-K Report, Executive Changes (Apr 7, 2026)

AppLovin (APP) disclosed a set of leadership succession changes in an 8-K filed April 7, 2026, covering both executive and board positions. Basil Shikin will step down as Chief Technology Officer effective July 1, 2026, remaining with the company as a non-executive Distinguished Engineer. Giovanni ("Gio") Ge, currently Chief Product and Engineering Officer, will succeed him as CTO. Victoria Valenzuela, Chief Administrative & Legal Officer, will retire effective August 1, 2026, and then serve as a consultant through May 31, 2027 for $150,000. Corina Cacovean, Deputy General Counsel for Privacy, Litigation & Regulatory, will become Chief Legal Officer upon Valenzuela's departure. The board has also indicated it will nominate Valenzuela as a director at the 2026 Annual Meeting. On the board side, Craig Billings, Lead Independent Director since the 2021 IPO, was appointed independent Chairperson, succeeding Adam Foroughi, who remains CEO and a director. Alyssa Harvey Dawson will not stand for re-election at the 2026 Annual Meeting, and the company states her decision was not the result of any disagreement with management. For investors, the filing describes an orderly, internally sourced succession rather than an abrupt exit. The filing does not include financial results or guidance. The most notable governance signal is the separation of the Chair and CEO roles, which many governance-focused investors view favorably, though the 8-K itself gives no detailed rationale beyond Foroughi's statement that it lets him focus on strategic execution.

Apr 7, 2026 8-K

AppLovin Corp 8-K Report, Financial Results (Feb 11, 2026)

AppLovin reported a strong fourth quarter and full year 2025. Q4 revenue rose 66% year over year to $1.66 billion, and full-year revenue rose 70% to $5.48 billion. Q4 net income grew 84% to $1.10 billion, and full-year net income grew 111% to $3.33 billion. Adjusted EBITDA reached $1.40 billion in Q4 (84% margin, up from 77%) and $4.51 billion for the year (82% margin, up from 75%). Net cash from operations was $3.97 billion for 2025, and free cash flow was $3.95 billion, nearly doubling from $2.07 billion in 2024. The filing also shows significant portfolio and balance sheet changes. The company completed a divestiture, reporting a $106 million gain on divestiture (net of transaction costs) against a $99 million loss from discontinued operations, and it recorded a $189 million goodwill impairment and a $50 million investment impairment. It now holds $288 million in equity method investments. Cash and equivalents increased to $2.49 billion from $697 million, while long-term debt was essentially unchanged at $3.51 billion. Management returned substantial capital in 2025, repurchasing and withholding shares for about $2.58 billion, and shares outstanding declined to 338 million. For the first quarter of 2026, management guided to revenue of $1.745 to $1.775 billion and Adjusted EBITDA of $1.465 to $1.495 billion, implying an 84% margin at both ends of the range. The guidance suggests continued sequential growth and margin stability. Investors should weigh these strong results against the impairments, the reliance on non-GAAP metrics, and the company's continued dependence on digital advertising dynamics.

Feb 11, 2026 8-K

AppLovin Corp 8-K Report, Financial Results (Nov 5, 2025)

AppLovin reported strong third quarter 2025 results, with revenue of $1.405 billion, up 68% year over year from $835 million, and net income of $836 million, up 92% from $434 million. Adjusted EBITDA rose 79% to $1.158 billion, implying an Adjusted EBITDA margin of roughly 82%, up from 77% a year earlier. Nine-month revenue reached $3.823 billion (up 72%) and nine-month net income reached $2.231 billion (up 128%). Growth was broad-based across the top and bottom line, and the company's operating leverage is evident, with operating income of $1.079 billion versus $534 million in the prior-year quarter. Cash generation was robust. Operating cash flow and Free Cash Flow were both about $1.05 billion in the quarter. Management returned significant capital, repurchasing and withholding 1.3 million Class A shares for $571 million during the quarter. The board also added $3.2 billion to the share repurchase authorization, bringing the remaining authorization to $3.3 billion as of end-October. Shares outstanding fell to 338.5 million at September 30, 2025, from 340.0 million at year-end 2024. Cash and equivalents rose to $1.67 billion, and long-term debt was roughly $3.5 billion. Fourth quarter 2025 guidance calls for revenue of $1.570 to $1.600 billion and Adjusted EBITDA of $1.290 to $1.320 billion, implying an 82% to 83% margin. Investors should note that net income in the nine months was inflated by a $106 million gain on divestiture, while a $189 million goodwill impairment and a $99 million loss from discontinued operations weighed on results. Adjusted EBITDA is a non-GAAP measure, and management did not provide GAAP guidance equivalents.

Nov 5, 2025 8-K

Material AgreementsOther EventsExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Aug 6, 2025)

AppLovin (APP) reported strong second quarter 2025 results, with revenue of $1,259 million, up 77% year over year from $711 million, and net income of $820 million, up 164%. Net income from continuing operations rose 156% to $772 million. Adjusted EBITDA reached $1,018 million, up 99%, with an Adjusted EBITDA margin of 81% versus 72% a year earlier. Growth was driven by the company's core software and AI advertising platform, and operating income more than doubled to $958 million. Management also highlighted strong cash generation, with operating cash flow of $772 million and Free Cash Flow of $768 million for the quarter. The quarter also marked a portfolio change: on June 30, 2025, AppLovin completed the sale of its Apps business to Tripledot Studios for $400 million in cash plus equity representing roughly 20% of Tripledot's fully diluted equity. Apps results are now reported as discontinued operations, which is why the gap between total net income and continuing-operations net income is noticeable in the six-month figures, including a $99 million loss from discontinued operations year to date. The Apps divestiture also produced a $106 million gain on divestiture in the first half, and the company recorded a $189 million goodwill impairment in the period. Capital allocation remained active. AppLovin repurchased and withheld shares totaling $341 million in the quarter and ended the quarter with 339 million Class A and B shares outstanding. Cash and equivalents rose to $1.19 billion at June 30, 2025, while long-term debt was roughly $3.51 billion. For Q3 2025, management guided to revenue of $1,320 million to $1,340 million and Adjusted EBITDA of $1,070 million to $1,090 million, implying an unchanged 81% Adjusted EBITDA margin.

Aug 6, 2025 8-K

AppLovin Corp 8-K Report, Material Agreement (Jul 1, 2025)

AppLovin Corporation (APP) has filed an 8-K detailing the closing of its previously announced sale of certain mobile gaming business subsidiaries to Tripledot. The transaction, originally announced on May 7, 2025, officially closed on June 30, 2025. Key to this update is the amendment to the purchase agreement, which allowed the purchaser, Tripledot, to pay a portion of the cash consideration in cash instead of issuing a secured promissory note as initially planned. This modification streamlines the transaction for AppLovin, ensuring the full cash component is received upfront. The company received $400.0 million in cash, subject to customary closing adjustments, and a 20% equity stake in Tripledot (Purchaser Parent) on a fully diluted basis.

Jul 1, 2025 8-K

Earnings & ResultsMaterial AgreementsExhibits & Filings

AppLovin Corp 8-K Report, Shareholder Vote Results (Jun 9, 2025)

AppLovin Corporation (APP) has filed an 8-K report detailing the outcomes of its annual meeting of stockholders held on June 4, 2025. The primary focus of this filing is the voting results on two key proposals: the election of directors and the ratification of its independent registered public accounting firm. Investors should note that all director nominees were overwhelmingly elected to serve until the 2026 annual meeting, indicating strong shareholder support for the current board. Additionally, the appointment of Deloitte & Touche LLP as the company's independent auditor for the fiscal year ending December 31, 2025, was also overwhelmingly ratified by shareholders. This strong endorsement of both the board and the auditor suggests a stable governance structure and continued confidence from the company's investors. While this 8-K does not contain forward-looking financial information or strategic updates, it serves as an important disclosure regarding corporate governance and shareholder engagement. The high vote tallies for the election of directors and the ratification of the auditor demonstrate a consistent alignment between management and its shareholder base on these fundamental corporate matters.

Jun 9, 2025 8-K

AppLovin Corp 8-K Report, Material Agreement (May 7, 2025)

On May 7, 2025, AppLovin (APP) agreed to sell its mobile gaming business (the Apps segment's gaming operations) to Tripledot for $400.0 million, consisting of $150.0 million cash at closing, a $250.0 million secured promissory note bearing 11% interest with an 18-month maturity, and an approximately 20% stake in Tripledot's fully-diluted equity. The transaction is expected to close in Q2 2025, subject to shareholder approval at Tripledot, HSR antitrust clearance, and other customary conditions, and it is not subject to a financing condition. Either party may terminate if closing has not occurred by November 3, 2025. Notably, the Company's indemnification exposure is limited, since the buyer's sole recourse for representation breaches is a buyer-side R&W insurance policy. Alongside the deal, AppLovin reported strong Q1 2025 results: total revenue rose 40% year over year to $1.484 billion, Advertising revenue grew 71% to $1.159 billion, and Adjusted EBITDA increased 83% to $1.005 billion. Net income more than doubled (up 144%) to $576.4 million, and free cash flow was $825.7 million. Advertising Adjusted EBITDA margin expanded to 81% from 73%. Q2 2025 guidance calls for Total Advertising Revenue of $1.195-$1.215 billion and Advertising Adjusted EBITDA of $970-$990 million, with no further guidance provided for the Apps segment given the pending sale. The filing signals a strategic pivot toward a pure-play AI-driven advertising platform. Investors should weigh the strong operational momentum in advertising against several items: a $188.9 million goodwill impairment in the quarter, a reduction in cash from $741 million to $551 million after $1.0 billion of share repurchases, the $200 million short-term debt position, and the fact that the sale proceeds are modest relative to the company's scale, with a meaningful portion of consideration being illiquid Tripledot equity and a note from a privately held counterparty.

May 7, 2025 8-K

Leadership Changes

AppLovin Corp 8-K Report, Executive Changes (Apr 9, 2025)

AppLovin Corporation (APP) announced a significant change to its Board of Directors. The company has appointed Maynard Webb, a seasoned executive with extensive experience in technology, e-commerce, and venture capital, to its Board and to the Audit Committee and Nominating and Corporate Governance Committee. Mr. Webb's background includes key leadership roles at eBay, Liveops, and his current ventures as founder of Webb Investment Network and board memberships at Salesforce and Visa. This appointment signals a potential strengthening of the board's oversight and strategic guidance, particularly in areas relevant to AppLovin's growth and operational efficiency. Concurrently, the company disclosed that Edward Oberwager will not seek re-election to the Board at the upcoming 2025 Annual Meeting of Stockholders. Mr. Oberwager will continue to serve his current term until the meeting. The filing explicitly states that his decision is not due to any disagreement with the Company or its management, indicating a planned transition rather than a contentious departure. Investors should monitor how these board dynamics evolve and the impact of Mr. Webb's expertise on AppLovin's future strategic direction.

Apr 9, 2025 8-K

Other Events

AppLovin Corp 8-K Report, Corporate Update (Apr 3, 2025)

AppLovin Corporation (APP) has filed an 8-K to disclose a preliminary indication of interest to explore the acquisition of TikTok in all markets outside of China. This is a significant and strategic move for AppLovin, potentially transforming its global presence and competitive landscape if a transaction were to materialize. The filing emphasizes that this indication of interest is preliminary, and there is no guarantee that any deal will be completed. Investors should closely monitor any further developments regarding this exploratory initiative. While the potential acquisition of TikTok represents a major strategic opportunity, it also introduces considerable complexity and risk. The scale of such a transaction, regulatory hurdles, and integration challenges would be substantial. AppLovin's current business, focused on mobile app marketing and gaming, would be dramatically altered by such an acquisition. Investors should consider the potential financial implications, the impact on AppLovin's existing operations, and the significant capital requirements associated with a deal of this magnitude.

Apr 3, 2025 8-K

Other Events

AppLovin Corp 8-K Report, Corporate Update (Feb 28, 2025)

AppLovin Corporation (APP) announced on February 28, 2025, an important modification to its existing share repurchase program. While the overall authorized repurchase amount remains unchanged, the company has implemented a new structure that provides greater flexibility and immediate availability for buybacks. This change signals management's confidence in the company's financial position and its commitment to returning value to shareholders. Specifically, $500 million has been immediately earmarked for share repurchases, overriding the previous quarterly Free Cash Flow limitation for this amount. In subsequent quarters, this $500 million allocation will be supplemented by the amount of Free Cash Flow generated in the preceding fiscal quarter. This adjusted approach allows for more agile capital deployment, enabling AppLovin to capitalize on market opportunities or address potential undervaluation of its stock more effectively. Investors should monitor the company's repurchase activity for insights into its capital allocation strategy and management's view of the stock's intrinsic value.

Feb 28, 2025 8-K

Leadership ChangesOther Events

AppLovin Corp 8-K Report, Financial Results (Feb 12, 2025)

AppLovin (NASDAQ: APP) reported a strong fourth quarter and full year 2024. Q4 total revenue rose 44% year over year to $1.37 billion, and full-year revenue grew 43% to $4.71 billion. The growth was driven almost entirely by the Advertising segment, which posted Q4 revenue of $999 million (up 73%) and full-year revenue of $3.22 billion (up 75%). Advertising Adjusted EBITDA grew 85% in Q4 to $777 million, with a segment margin of 78%. The Apps segment was flat to down, with Q4 revenue down 1% to $373 million. Management said the Advertising business now represents substantially all of the company's revenue and future focus, and renamed the "Software Platform" segment to "Advertising." Profitability and cash generation improved sharply. Q4 net income was $599 million, versus $172 million a year earlier, and full-year net income was $1.58 billion, up 343%. Full-year Adjusted EBITDA reached $2.72 billion, a 81% increase, with a 58% margin. Free Cash Flow was $695 million in Q4 and $2.07 billion for the full year. Net income for the quarter was also helped by a $84 million income tax benefit. Capital allocation was active: the company retired and withheld 25.7 million Class A shares in 2024 for about $2.1 billion, and it repaid $4.2 billion of debt while issuing $4.6 billion of new debt. Long-term debt stood at $3.5 billion at year-end. First quarter 2025 guidance calls for total revenue of $1.355 to $1.385 billion and Adjusted EBITDA of $855 to $885 million, implying a 63% to 64% margin. Guidance for the Advertising segment implies continued sequential growth, while Apps is guided to $325 to $335 million in revenue. The company did not provide GAAP reconciliations for its forward-looking non-GAAP metrics, citing variability in items such as stock-based compensation. The 8-K furnishes the earnings press release under Item 2.02, so the information is not deemed "filed" for Section 18 purposes.

Feb 12, 2025 8-K

AppLovin Corp 8-K Report, Executive Changes (Feb 12, 2025)

AppLovin Corporation (APP) has filed an 8-K report detailing significant corporate developments. The most impactful announcement is the execution of a non-binding term sheet for the sale of its mobile gaming business to a private company for $900 million. The consideration is structured as $400 million in the Acquirer's common equity and $500 million in cash, with potential financing contingencies for the cash portion. This strategic divestiture signals a potential shift in AppLovin's business focus, moving away from its mobile gaming segment. Investors should closely monitor the progression of this non-binding term sheet towards a definitive agreement, as it represents a substantial transaction that could reshape the company's asset base and future revenue streams. Additionally, the departure of Chief Marketing Officer, Katie Jansen, effective March 14, 2025, has been disclosed, noted as not being due to any disagreements.

Feb 12, 2025 8-K

Material AgreementsFinancial EventsExhibits & Filings

AppLovin Corp 8-K Report, Material Agreement (Dec 5, 2024)

AppLovin Corporation (APP) has filed an 8-K report detailing significant financing activities. On December 5, 2024, the company successfully completed a public offering of approximately $3.55 billion in aggregate principal amount of senior notes across four different maturity tranches (2029, 2031, 2034, and 2054) with coupon rates ranging from 5.125% to 5.950%. The net proceeds from this offering, totaling around $3,519 million after underwriting discounts, are earmarked to fully repay the company's outstanding senior secured term loan facilities due in 2028 and 2030. Concurrently, AppLovin also entered into a new $1,000 million unsecured revolving credit facility, maturing in 2029 with potential one-year extensions and an accordion feature for an additional $1,000 million. This new facility replaces and terminates the company's previous secured credit agreement. These strategic financial moves indicate a deleveraging of secured debt and a shift towards unsecured financing, potentially altering the company's capital structure and debt servicing obligations.

Dec 5, 2024 8-K

Material AgreementsExhibits & Filings

AppLovin Corp 8-K Report, Material Agreement (Nov 22, 2024)

AppLovin Corporation (APP) announced a significant debt offering, entering into an underwriting agreement for $3.55 billion in senior notes. This offering comprises multiple tranches with varying maturity dates and interest rates, including 5.125% notes due 2029, 5.375% notes due 2031, 5.500% notes due 2034, and 5.950% notes due 2054. The primary purpose of this capital raise is to fully repay the company's existing senior secured term loan facilities due in 2028 and 2030. This strategic refinancing is expected to improve AppLovin's debt maturity profile and potentially lower its overall interest expenses, depending on the terms of the new notes compared to the old facilities. The net proceeds, after repaying the term loans, will be used for general corporate purposes. The offering is subject to customary closing conditions and is anticipated to close on December 5, 2024. Investors should note that this is a debt issuance and not an equity offering. The filing also includes standard representations, warranties, covenants, and indemnification provisions typical for such agreements.

Nov 22, 2024 8-K

Regulation FDExhibits & Filings

AppLovin Corp 8-K Report, Corporate Update (Nov 20, 2024)

On November 20, 2024, AppLovin Corporation (NASDAQ: APP) launched and priced an underwritten public offering of $3.55 billion in senior unsecured notes under an effective Form S-3 shelf registration that became automatically effective on June 1, 2023. The offering comprises four tranches: $1.0 billion of 5.125% notes due 2029, $1.0 billion of 5.375% notes due 2031, $1.0 billion of 5.500% notes due 2034, and $550 million of 5.950% notes due 2054. The company expects to close on December 5, 2024, subject to customary conditions. J.P. Morgan, BofA Securities, and Morgan Stanley are joint lead book-running managers, with Citigroup and Goldman Sachs as additional joint book-runners. The primary purpose is to refinance debt. Net proceeds will fully repay the company's senior secured term loan facilities due 2028 and due 2030, with any remainder going to general corporate purposes. The filing does not disclose the outstanding balances of those term loans, the pricing savings, or the resulting change in leverage, so investors will need the prospectus supplement or subsequent 10-Q disclosures to quantify the benefit. The notes are unsecured and not guaranteed by any subsidiaries, which means noteholders rank behind secured creditors and are structurally subordinated to the liabilities of the operating subsidiaries. For investors, the key trade-off is that the transaction replaces secured, likely floating-rate, bank debt with fixed-rate unsecured debt that carries a blended coupon of roughly 5.4% and approximately $193 million of annual interest expense at full issuance. This extends the maturity profile out to 2029–2054 and lessens reliance on secured lenders. The cost of the notes compared with the retired term loans, and the effect on the company's credit ratings and covenant flexibility, are not addressed in the filing.

Nov 20, 2024 8-K

AppLovin Corp 8-K Report, Regulation FD Disclosure (Nov 19, 2024)

AppLovin Corporation (APP) has announced a significant strategic move towards an all-unsecured debt capital structure, following the attainment of investment-grade ratings from both S&P Global Ratings and Fitch Ratings (both BBB-). This development is a strong indicator of the company's improved financial health and reduced risk profile, which is expected to lower its cost of capital. The company is initiating meetings with potential fixed-income investors and has secured syndication commitments for a new $1,000 million unsecured revolving credit facility. This facility is contingent on replacing its existing senior secured credit facility and repaying its secured term loans. This transition to unsecured debt is a positive signal for investors, reflecting increased financial flexibility and a stronger balance sheet.

Nov 19, 2024 8-K

AppLovin Corp 8-K Report, Financial Results (Nov 6, 2024)

AppLovin reported third quarter 2024 revenue of $1.20 billion, up 39% year-over-year, with GAAP net income of $434 million (36% net margin, versus 13% a year earlier) and Adjusted EBITDA of $722 million (60% margin, up 72%). Growth was driven by the Software Platform segment, which generated $835 million of revenue (up 66%) and $653 million of segment Adjusted EBITDA at a 78% margin. The Apps segment was roughly flat, with revenue of $363 million (up 1%) and Adjusted EBITDA of $68 million at a 19% margin. Management said the Software Platform's margins will fluctuate quarterly, mainly because of data center infrastructure investment, and plans to rename the segment 'Advertising' starting with the next shareholder letter and Form 10-K. Cash generation was strong. Operating cash flow was $551 million and Free Cash Flow was $545 million, both more than tripled year-over-year on a percentage basis (+177% and +182%). Cash and equivalents ended the quarter at $568 million. The board increased the share repurchase authorization by $2.0 billion, bringing total remaining authorization to $2.3 billion, with future buybacks to be funded from Free Cash Flow. Shares outstanding fell to 335 million. Management also reiterated a net debt leverage target below 2.0x. Based on the balance sheet, total debt of about $3.51 billion less cash implies net debt of about $2.9 billion, or roughly 1.25x trailing four-quarter Adjusted EBITDA (my calculation, not a company figure). For Q4 2024, management guided to total revenue of $1,240 to $1,260 million and Adjusted EBITDA of $740 to $760 million, implying a 60% Adjusted EBITDA margin. Investors should note that Adjusted EBITDA and Free Cash Flow are non-GAAP measures, that stock-based compensation is excluded from Adjusted EBITDA (it was $82 million in the quarter), and that the 8-K states Item 2.02 information is furnished rather than filed under Section 18 of the Exchange Act.

Nov 6, 2024 8-K

AppLovin Corp 8-K Report, Financial Results (Aug 7, 2024)

AppLovin (NASDAQ: APP) reported strong second-quarter 2024 results, with total revenue of $1.08 billion, up 44% year over year, and GAAP net income of $310 million, up roughly 286% from $80 million a year earlier. Net margin expanded to 29% from 11%, and Adjusted EBITDA rose 80% to $601 million at a 56% margin. Growth was driven almost entirely by the Software Platform segment, where revenue grew 75% to $711 million and segment Adjusted EBITDA rose 91% to $520 million at a 73% margin. The company attributes this to the AXON advertising technology, which it says has improved through self-learning and directed model enhancements over the past year. Cash generation was also strong. Operating cash flow was $455 million (up 98%) and Free Cash Flow was $446 million (up 102%). The company ended the quarter with $460 million in cash and cash equivalents, roughly 334 million shares outstanding, and about $500 million remaining under a $1.25 billion share repurchase authorization as of August 7, 2024. During the quarter it also withheld about 4.2 million Class A shares for $356 million in connection with net share settlement of vested equity awards, a meaningful cash drain on top of buybacks. The Apps segment was a relative laggard, with revenue up 7% to $369 million. Its Adjusted EBITDA margin improved to 22% from 15% in the prior quarter, which management attributed to reduced user acquisition spend rather than stronger revenue. For Q3 2024, management guided to total revenue of $1.115 to $1.135 billion and Adjusted EBITDA of $630 to $650 million, implying a 57% margin. The balance sheet shows total debt rising to roughly $3.5 billion in long-term debt, which investors should weigh against the strong cash flow.

Aug 7, 2024 8-K

AppLovin Corp 8-K Report, Shareholder Vote Results (Jun 6, 2024)

AppLovin Corporation (APP) filed an 8-K on June 5, 2024, reporting the outcomes of its annual meeting of stockholders held on June 4, 2024. The primary focus of this filing is the voting results on two key proposals: the election of directors and the ratification of the company's independent registered public accounting firm. All director nominees presented at the meeting were duly elected, indicating strong shareholder confidence in the current board leadership. Furthermore, shareholders overwhelmingly ratified the appointment of Deloitte & Touche LLP as the company's auditor for the fiscal year ending December 31, 2024, signifying continued trust in the firm's oversight capabilities. This filing provides an update on corporate governance matters and demonstrates shareholder approval for the company's current strategic direction and oversight. The high vote counts for both proposals suggest a stable and supportive shareholder base, which can be viewed positively by investors. For AppLovin, maintaining strong corporate governance and a clear relationship with its auditors are foundational elements for continued business operations and investor confidence.

Jun 6, 2024 8-K

Material AgreementsFinancial EventsExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (May 8, 2024)

AppLovin (APP) reported a strong first quarter 2024, with total revenue of $1.06 billion, up 48% year over year, and net income of $236 million, a 22% net margin, versus a net loss of $4.5 million a year earlier. Adjusted EBITDA more than doubled to $549 million (52% margin, +101% YoY). Growth was driven almost entirely by the Software Platform segment, where revenue rose 91% to a record $678 million and segment Adjusted EBITDA rose 125% to $492 million at a 73% margin. Management attributes this to continued improvements in its AXON technology, which has lifted advertisers' return on ad spend and drawn increased ad investment. The Apps segment, which management describes as no longer a strategic focus, grew only 5% to $380 million with a 15% Adjusted EBITDA margin. Cash generation and capital allocation were also prominent. Operating cash flow was $393 million and free cash flow $388 million. Management repurchased and withheld 14.9 million Class A shares, reducing total shares outstanding by about 3% net of issuance, and about $500 million remains under the $1.25 billion buyback authorization. The balance sheet shifted meaningfully: long-term debt rose to $3.49 billion from $2.91 billion after roughly $1.07 billion of new debt issuance, which funded debt repayments and buybacks. Cash fell to $436 million, and stockholders' equity declined to $760 million from $1.26 billion, largely reflecting the share repurchases. For 2Q24, management guided to total revenue of $1,060 to $1,080 million and Adjusted EBITDA of $550 to $570 million (52% to 53% margin). That guidance implies roughly flat sequential revenue, which investors will want to weigh against the strong Q1 trajectory. Because Adjusted EBITDA excludes stock-based compensation, which was $95 million in the quarter, investors should also consider GAAP results when assessing profitability.

May 8, 2024 8-K

AppLovin Corp 8-K Report, Material Agreement (Mar 14, 2024)

AppLovin Corporation (APP) has filed an 8-K report on March 14, 2024, detailing a significant amendment (Amendment No. 10) to its existing Credit Agreement dated August 15, 2018. This amendment involves a substantial refinancing of its outstanding term loans, including both the voluntary prepayment of a portion and the issuance of new refinancing term loans. The primary objective appears to be optimizing the company's debt structure and potentially extending maturity dates. Specifically, AppLovin has entered into two new tranches of term loans: the Amendment No. 10-I Replacement Term Loans totaling $1,463,750,000, which refinance a portion of previous term loans maturing October 25, 2028, and the Initial Term Loans totaling $2,092,500,000, which refinance other existing term loans and mature on August 18, 2030. The new loans carry an interest rate floor of 50 basis points for SOFR loans and an applicable margin of 2.5% for SOFR loans (1.5% for base rate loans). While specific interest rate details are subject to the agreement, these changes indicate a strategic move in managing the company's leverage and financial obligations.

Mar 14, 2024 8-K

Material AgreementsExhibits & Filings

AppLovin Corp 8-K Report, Material Agreement (Mar 4, 2024)

AppLovin Corporation (APP) has filed an 8-K report detailing a material definitive agreement related to a secondary public offering. On February 29, 2024, the company entered into an underwriting agreement for the sale of approximately 19.87 million shares of Class A common stock by KKR Denali Holdings L.P. (the Selling Stockholder) at a price of $56.00 per share. Importantly, AppLovin itself will not receive any proceeds from this offering. In conjunction with the offering, AppLovin has agreed to repurchase over 10.46 million shares from the underwriters at $54.46 per share. This concurrent repurchase mechanism, alongside the Selling Stockholder's conversion of approximately 16 million shares of Class B common stock into Class A shares, suggests a strategic move to manage share dilution and potentially adjust the company's capital structure without directly raising funds. The offering and repurchase are expected to close around March 6, 2024, subject to customary conditions.

Mar 4, 2024 8-K

Earnings & ResultsOther EventsExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Feb 14, 2024)

AppLovin (APP) reported fourth quarter and full year 2023 results on February 14, 2024, with a strong close to the year driven by its Software Platform segment. Q4 2023 revenue rose 36% year-over-year to $953 million, net income was $172 million (18% net margin, versus a net loss of $80 million a year earlier), and Adjusted EBITDA grew 83% to $476 million at a 50% margin. Full-year 2023 revenue reached $3.3 billion (+17%), net income was $357 million (versus a net loss of $193 million in 2022), and free cash flow was $1.0 billion (+167%). The growth was concentrated in the Software Platform, whose Q4 revenue hit $576 million (+88% year-over-year) at a 73% segment Adjusted EBITDA margin, while the Apps segment declined 18% for the full year as management pruned studios and user acquisition spend. Management guided 1Q24 total revenue to $955 million to $975 million and Adjusted EBITDA to $475 million to $495 million (50% to 51% margin), signaling continued stability. Capital allocation was a central theme: the company repurchased or withheld 54.3 million Class A shares in 2023, reducing total shares outstanding by nearly 10% net of issuances, and the Board authorized a $1.25 billion increase to the repurchase program, bringing total capacity to roughly $1.252 billion. Investors should weigh the strong cash generation and buyback capacity against a leveraged balance sheet, with total debt of about $3.1 billion (including $215 million short-term) against $502 million of cash at year-end, and against the Apps segment's continued revenue decline. The filing also highlights the company's expansion plans into Connected-TV (Wurl) and OEM & Carrier (Array) for 2024. Note that the shareholder letter's non-GAAP Adjusted EBITDA excludes stock-based compensation, which rose to $363 million in 2023 from $192 million in 2022, so GAAP profitability should be evaluated alongside the non-GAAP figures.

Feb 14, 2024 8-K

Earnings & ResultsLeadership ChangesExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Nov 8, 2023)

AppLovin (APP) reported a strong third quarter of 2023, with total revenue up 21% year-over-year to $864 million, net income of $109 million (13% net margin, versus 3% a year earlier), and Adjusted EBITDA of $419 million (+63% YoY) at a 49% margin. The results were driven primarily by the Software Platform segment, where revenue rose 65% to a record $504 million and Adjusted EBITDA grew 91% to $364 million at a 72% margin. Management attributes the outperformance to AXON 2.0, its AI-based advertising engine behind the AppDiscovery platform, and said results exceeded the high end of revenue and Adjusted EBITDA guidance. The Apps segment was weaker, with revenue down 11% YoY to $360 million and Adjusted EBITDA down 18% to $55 million, at a 15% margin. Investors should note that Apps is the declining segment, and that Software Platform now accounts for roughly 58% of revenue and nearly 90% of Adjusted EBITDA. Capital allocation and balance sheet items also matter. Year-to-date repurchases reached $1.154 billion of Class A stock at a weighted average price under $25 per share. Cash fell to $332 million at quarter-end from $1.08 billion at year-end 2022, and short-term debt rose to $215 million. Management said a credit agreement amendment refinanced certain term loans, extended their maturity to 2030, improved the credit spread, and reduced the principal by $249 million. Year-to-date operating cash flow was $718 million, and Q3 Free Cash Flow was $194 million. Management guided Q4 2023 revenue to $910-930 million and Adjusted EBITDA to $420-440 million (46-47% margin). Note that Adjusted EBITDA and Free Cash Flow are non-GAAP measures, and that stock-based compensation rose sharply to $111 million in Q3 from $42 million a year earlier, which weighs on GAAP profitability relative to the adjusted figures. Leadership is also changing. President and CFO Herald Chen will step down from his management roles effective December 31, 2023, remain on the Board, and become an advisor to the CEO, receiving a $2.4 million RSU award for that advisory role. Matthew Stumpf, currently VP of Finance and FP&A, becomes CFO effective January 1, 2024, at a $400,000 base salary and a $5 million RSU grant. Dmitriy Dorosh, VP Controller, becomes principal accounting officer on the same date. The transition is orderly and internally sourced, but it is a change in the finance leadership during a period of rapid growth, and investors may want to monitor continuity in financial reporting and guidance.

Nov 8, 2023 8-K

Leadership Changes

AppLovin Corp 8-K Report, Executive Changes (Sep 6, 2023)

AppLovin Corporation (APP) announced a significant change to its Board of Directors through an 8-K filing on September 5, 2023. The company appointed Todd Morgenfeld, a seasoned finance executive with extensive experience at major technology firms like Pinterest and Twitter, to its Board. Mr. Morgenfeld's background includes leadership roles in finance and business operations, as well as prior experience as an investment partner at Silver Lake Partners. His appointment is expected to bring valuable financial and strategic insights to AppLovin. Concurrently, the filing disclosed the resignation of Asha Sharma from the Board of Directors, effective immediately. The company stated that Ms. Sharma's departure was not a result of any disagreement concerning the company's operations, policies, or practices. These board changes, particularly the addition of a director with Mr. Morgenfeld's profile, are key developments for investors to monitor as they may influence the company's strategic direction and financial oversight.

Sep 6, 2023 8-K

Material AgreementsOther EventsExhibits & Filings

AppLovin Corp 8-K Report, Material Agreement (Aug 21, 2023)

AppLovin Corporation (APP) announced a significant share repurchase agreement on August 21, 2023, for approximately $552.75 million. The company will buy back 15,000,000 shares of its Class A common stock from KKR Denali Holdings L.P. at a price of $36.85 per share. This transaction represents a discount to both the previous day's closing price and the five-day volume-weighted average trading price, suggesting a potentially opportunistic buyback. The Special Committee of AppLovin's Board of Directors, composed of independent directors, approved this private transaction. In conjunction with this repurchase, AppLovin also authorized an increase to its share repurchase program by approximately $448 million, bringing the total authorization up to $555 million. Following the completion of the KKR Denali transaction, a small amount will remain available under this enhanced program. This strategic move signals management's confidence in the company's valuation and commitment to returning capital to shareholders.

Aug 21, 2023 8-K

Material AgreementsExhibits & Filings

AppLovin Corp 8-K Report, Material Agreement (Aug 18, 2023)

AppLovin Corporation (APP) announced on August 18, 2023, that it has entered into Amendment No. 9 to its Credit Agreement. This amendment facilitates the refinancing of existing term loans with new $1.5 billion in term loans. The primary purpose of this action is to extend the maturity of a significant portion of its debt and optimize its capital structure. These new Amendment No. 9 Replacement Term Loans mature on August 18, 2030, and carry an interest rate with a floor of 50 basis points for SOFR loans, plus an applicable margin of 3.10% for SOFR loans. This refinancing is a strategic move to manage its debt obligations, providing AppLovin with greater financial flexibility and a longer runway for its debt. Investors should note that the core terms of the debt, aside from maturity and interest rate adjustments, remain largely consistent with the previous agreement.

Aug 18, 2023 8-K

AppLovin Corp 8-K Report, Corporate Update (Aug 16, 2023)

AppLovin Corporation (NASDAQ: APP) filed this Form 8-K on August 16, 2023 to supply a legal opinion from Wilson Sonsini Goodrich & Rosati (Exhibit 5.1) supporting a prospectus supplement, dated August 14, 2023, under its Form S-3 shelf registration (File No. 333-272328). The supplement covers 10,000,000 shares of Class A common stock being sold by KKR Denali Holdings L.P. (KKR), a significant existing shareholder. The filing is administrative in nature and does not involve any primary issuance by the company. The underlying transaction is a secondary block sale: KKR agreed to sell the 10 million shares in a direct placement to client accounts managed by GQG Partners LLC, a global equity investment boutique. AppLovin states it is not offering any shares and will receive none of the proceeds, which go entirely to KKR. The transaction was negotiated directly between KKR and GQG and is expected to close on August 21, 2023. Because the company issues no new shares, there is no direct dilution to existing holders and no change to its capital structure or cash position from this event. For investors, the key signal is the ownership change rather than any company-level financial impact. A large holder reducing its stake and a new institutional holder increasing its position can affect the float, trading liquidity, and sentiment around the stock. The press release quotes CEO Adam Foroughi expressing appreciation for GQG's support, and GQG cites AppLovin's "strong execution." The filing contains no new financial results or guidance.

Aug 16, 2023 8-K

Other Events

AppLovin Corp 8-K Report, Corporate Update (Aug 14, 2023)

AppLovin Corporation (APP) announced in an 8-K filing dated August 14, 2023, that it is negotiating an amendment to its existing Credit Agreement. This proposed amendment involves a significant voluntary prepayment of approximately $249 million of its outstanding Initial Term Loans, to be funded from available cash. This proactive deleveraging move aims to reduce the outstanding principal on these loans from $1.749 billion to $1.500 billion. Furthermore, the company is also in discussions to lower the interest rate on these Initial Term Loans. A key change anticipated with the amendment is the extension of the maturity date for the Initial Term Loans from August 15, 2025, to August 15, 2030. Investors should note that these plans are still subject to successful negotiation and the terms may change or the transactions may not occur at all.

Aug 14, 2023 8-K

Material AgreementsFinancial EventsShareholder Matters+1

AppLovin Corp 8-K Report, Financial Results (Aug 9, 2023)

AppLovin's second quarter 2023 results showed a shift in its revenue mix. Total revenue was $750 million, down 3% year over year, but the Software Platform segment grew 28% to a record $406 million and now accounts for 54% of revenue, up from 41%. Apps revenue fell 25% to $344 million, driven mainly by lower in-app purchase revenue. Adjusted EBITDA rose 24% to $334 million, with a 44% margin, up from 35%. The Software Platform generated $273 million of that Adjusted EBITDA at a 67% margin, while Apps delivered $61 million at an 18% margin. Management attributed the Software Platform's performance to the rollout of its AXON 2.0 AI advertising engine, which drove more installs and higher revenue per install. GAAP results also improved. Net income was $80 million, an 11% net margin, compared with a net loss of $22 million a year earlier. Operating cash flow was $230 million and free cash flow was $221 million. The company ended the quarter with $876 million in cash and a $610 million revolving credit facility, and it had repurchased $601 million of Class A stock year to date through August 8, leaving $107 million under its authorization. Long-term debt was about $3.17 billion at quarter end. For third quarter 2023, AppLovin guided to revenue of $780 million to $800 million and Adjusted EBITDA of $340 million to $360 million, a 44% to 45% margin. Investors should weigh the strong Software Platform margins and guidance against the continued decline in the Apps segment, the reliance on AI-driven advertising performance, and the company's significant debt load alongside its buybacks. Adjusted EBITDA and free cash flow are non-GAAP measures and exclude items such as stock-based compensation, which was $81 million in the quarter.

Aug 9, 2023 8-K

AppLovin Corp 8-K Report, Material Agreement (Jun 12, 2023)

AppLovin Corporation (APP) filed an 8-K on June 12, 2023, primarily detailing an amendment to its credit agreement and the outcomes of its annual stockholder meeting. The key financial update involves Amendment No. 8 to their Credit Agreement, which extends the maturity date of the revolving credit commitments to June 12, 2028, and increases these commitments by $10.0 million to an aggregate of $610.0 million. This amendment offers AppLovin greater financial flexibility and extended borrowing capacity, which could be crucial for its ongoing operations and strategic initiatives. The annual meeting, held on June 7, 2023, saw the election of all eight director nominees, the ratification of Deloitte & Touche LLP as the independent auditor for fiscal year 2023, and advisory approval of executive compensation. Notably, stockholders voted in favor of holding future advisory votes on executive compensation every three years. These corporate governance updates signal stability and continued board oversight.

Jun 12, 2023 8-K

Material AgreementsOther EventsExhibits & Filings

AppLovin Corp 8-K Report, Corporate Update (Jun 2, 2023)

AppLovin Corporation (NASDAQ: APP) filed this Form 8-K on June 2, 2023 to supply a legal opinion from Wilson Sonsini Goodrich & Rosati covering the validity of securities in a prospectus supplement dated June 1, 2023. That supplement registers 15,000,000 shares of Class A common stock to be sold by KKR Denali Holdings L.P., a KKR-affiliated holder, under an existing Form S-3 shelf (File No. 333-272328). The filing is administrative in nature. It does not disclose any new financial results, guidance, or capital raise by the company. The underlying transaction is a secondary sale. KKR has agreed to sell the 15 million shares in a direct placement to client accounts managed by GQG Partners LLC, a global equity investment boutique. AppLovin will receive none of the proceeds, and KKR will keep all of them. The company states the placement is intended to bring new long-term oriented investors into its shareholder base. The transaction is expected to close on June 9, 2023. For investors, the key takeaways are the absence of dilution, since no new shares are issued by the company, and the potential overhang or supply effect of a large block sale by a significant holder. The filing does not state the offering price or discount, so the market reaction and KKR's remaining stake cannot be determined from this document alone. The details would be in the prospectus supplement itself.

Jun 2, 2023 8-K

AppLovin Corp 8-K Report, Material Agreement (May 17, 2023)

AppLovin Corporation (APP) announced a significant share repurchase agreement to buy back approximately $335 million worth of its Class A common stock from KKR Denali Holdings L.P. at a price of $21.00 per share. This transaction represents an approximately 8% discount to the previous day's closing price and is expected to close shortly. The repurchase was approved by a Special Committee of independent directors, indicating a structured and governed process. In conjunction with this private repurchase, AppLovin's Board also authorized an increase in its share repurchase program by $296 million, bringing the total authorized amount to $500 million. This demonstrates management's confidence in the company's financial position and its commitment to returning value to shareholders. Following the KKR transaction, approximately $165 million will remain available under the expanded program, allowing for continued flexibility in managing its capital structure and potentially further share buybacks.

May 17, 2023 8-K

Leadership ChangesExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (May 10, 2023)

AppLovin (APP) reported first quarter 2023 results that beat the top end of its guidance, with total revenue of $715 million (up 14% year-over-year, and $10 million above the top of its guidance range) and Adjusted EBITDA of $274 million at a 38% margin. The company posted a net loss of $5 million (a (1)% net margin), a sharp improvement from the $115 million loss in 1Q22, which was depressed by $210 million in non-recurring publisher bonuses recorded as contra-revenue. Cash generation was strong: operating cash flow was $289 million and Free Cash Flow was $283 million, though management noted both were boosted by several large customer payments from prior periods, so they may not be fully repeatable. The company ended the quarter with $1.2 billion in cash and cash equivalents. The business mix shifted sharply. Software Platform revenue reached a record $355 million, up 199% year-over-year but only about 8% excluding the prior-year publisher bonuses, and grew 16% sequentially. Segment Adjusted EBITDA margin held at roughly 62%. Management credited partial stabilization in the mobile app ad market, higher revenue per install, and a modest contribution from the Wurl acquisition. The Apps segment remained under pressure, with revenue down 29% year-over-year to $361 million on weaker in-app purchase revenue, though Apps Adjusted EBITDA rose 35% to $55 million as user acquisition spend and operating costs were cut and underperforming assets were sold. For 2Q23, management guided to total revenue of $710 million to $730 million, Adjusted EBITDA of $280 million to $300 million, and an Adjusted EBITDA margin of 39% to 41%, describing expected performance as steady. Investors should note that Adjusted EBITDA excludes stock-based compensation, which rose to $83 million from $45 million, and that interest expense climbed to $75 million from $32 million. The company also repurchased $202 million of stock year-to-date through May 8, leaving $210 million under its $750 million authorization. The filing also notes that Software Platform enterprise client and transaction value metrics were discontinued beginning this quarter.

May 10, 2023 8-K

AppLovin Corp 8-K Report, Executive Changes (Mar 13, 2023)

AppLovin Corporation (APP) filed an 8-K on March 13, 2023, detailing significant equity awards granted to its executive team. The company approved the grant of performance-based restricted stock units (PSUs) to CEO Adam Foroughi and CTO Vasily Shikin, as well as to other key employees. These PSUs are tied to achieving specific stock price targets over a five-year performance period, aligning executive compensation with long-term shareholder value creation. Additionally, both Mr. Foroughi and Mr. Shikin received time-based restricted stock units that vest in full on February 20, 2024, contingent on their continued service. The performance-based awards are structured with vesting contingent upon sustained increases in AppLovin's stock price, with targets ranging from $36.00 to $79.00 per share. This tiered structure aims to reward executives for significant and sustained market capitalization growth. A notable aspect of these grants is the extended holding period required for the awarded shares, designed to further reinforce the long-term commitment of key leadership to the company's success and to ensure alignment with shareholder interests.

Mar 13, 2023 8-K/A

AppLovin Corp 8-K/A Report, Financial Results (Feb 21, 2023)

AppLovin filed this Form 8-K/A to replace its February 8, 2023 shareholder letter with a corrected version. The correction reclassifies certain amounts among operating, investing, and financing cash flows for fiscal 2022, and revises net cash from operating activities, net cash from investing activities, net cash used in financing activities, and Free Cash Flow for Q4 and full-year 2022. The underlying income statement, revenue, and Adjusted EBITDA figures are not described as changed. Investors should rely on the amended Exhibit 99.1 cash flow figures, not the original letter. On the reported results, AppLovin generated $2.8 billion of revenue in 2022 with a net loss of $193 million (a (7)% net margin) and Adjusted EBITDA above $1 billion at a 38% margin. Q4 2022 revenue was $702 million, down 11% year over year, with a net loss of $80 million and Adjusted EBITDA of $260 million (37% margin). Software Platform revenue grew 24% in Q4 to $306 million, while Apps revenue fell 28% to $396 million, mainly from lower In-App Purchase revenue. Management describes the Apps portfolio optimization as nearly complete, with 11 studios remaining. For Q1 2023, management guides to revenue of $685 to $705 million, Adjusted EBITDA of $250 to $270 million, and a 36% to 38% Adjusted EBITDA margin, which it describes as consistent with Q4 2022. Beginning in Q1 2023, the company will stop reporting Total Software Transaction Value, Software Platform Enterprise Clients, and Revenue per SPEC, reflecting a shift in the Software Platform revenue mix toward newer offerings such as Adjust, Wurl, and Array.

Feb 21, 2023 8-K

Corporate ChangesExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Feb 8, 2023)

AppLovin (APP) reported fourth-quarter 2022 revenue of $702 million, down 11% year over year, with a net loss of $80 million (an 11% negative net margin). Adjusted EBITDA was $260 million, up 17% year over year, at a 37% margin. Free cash flow was $132 million, a non-GAAP measure the company introduced this quarter. For full-year 2022, revenue was $2.82 billion and the net loss was $193 million. Full-year Adjusted EBITDA was $1.06 billion at a 37.7% margin. Full-year results include a $210 million publisher bonus recorded as contra-revenue in Q1 2022, which the company adds back in Adjusted EBITDA. The mix shifted sharply within the business. Software Platform revenue rose 24% year over year in Q4 to $306 million and 56% for the full year to $1.0 billion, with segment margins around 61% in Q4. Apps revenue fell 28% in Q4 to $396 million, driven by lower In-App Purchase revenue, as management completed its operational optimization of the portfolio, reducing headcount and selling or closing underperforming studios. The outlook calls for stability. First-quarter 2023 guidance is revenue of $685 to $705 million and Adjusted EBITDA of $250 to $270 million, implying a 36% to 38% margin. Management described the mobile ad market as relatively stable but noted that developers are closely watching profitability. Cash and equivalents were $1.1 billion at year-end, and the company repurchased $339 million of stock in 2022. Investors should weigh the GAAP losses, which include a $100 million impairment charge in Q4, against the strong cash generation and Adjusted EBITDA. They should also note that the company will stop reporting several Software Platform metrics starting in Q1 2023, which reduces visibility into that segment.

Feb 8, 2023 8-K

AppLovin Corp 8-K Report, Bylaw Amendment (Feb 6, 2023)

AppLovin Corporation (APP) filed an 8-K on February 6, 2023, reporting amendments to its Amended and Restated Bylaws, effective February 3, 2023. These updates are primarily to align the company's governance documents with recent changes in Delaware corporate law and SEC regulations, particularly the universal proxy rules. Key changes include enhanced procedural requirements and disclosures for stockholder nominations and proposals, clarifications on exclusive forum provisions, and updates to provisions concerning director and officer indemnification and insurance.

Feb 6, 2023 8-K

Earnings & ResultsLeadership ChangesExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Nov 9, 2022)

AppLovin (APP) reported third-quarter 2022 results on November 9, 2022, showing a sharp divergence between its two segments. Total revenue fell 2% year-over-year to $713 million, while net income swung to $24 million from essentially breakeven a year earlier (a 3% net margin). Adjusted EBITDA rose 35% to $258 million, a 36% margin, up from 26%. The growth engine is the high-margin Software Platform, where revenue rose 59% to $307 million and segment Adjusted EBITDA rose 46% to $190 million at a 62% margin. Software Platform Enterprise Clients grew 84% to 538, and net dollar-based retention reached 166%. The Apps segment, by contrast, declined 24% to $407 million as management deliberately shrank user acquisition spend and non-strategic titles, though its Adjusted EBITDA grew 12% to $67 million at a 17% margin. The more significant news for investors is the guidance reset. Management will now give only next-quarter guidance rather than annual targets, citing macro uncertainty. For 4Q22, it expects revenue of $685 to $700 million and Adjusted EBITDA of $250 to $265 million. The implied 2022 revenue of $2.80 to $2.81 billion falls below the bottom of the prior $2.84 billion outlook, which the company attributed to tighter advertiser digital ad budgets. Management still expects 2022 Adjusted EBITDA of roughly $1.05 to $1.07 billion, implying about 46% growth at the midpoint. The company also reported $944 million in cash and over $400 million of remaining buyback capacity under its $750 million program. The filing also disclosed that the Board designated President and CFO Herald Chen as Principal Accounting Officer, with no change to his compensation. Investors should weigh the strong Software Platform margins and cash generation against a shrinking Apps business, a lower revenue outlook, and reduced visibility from the end of annual guidance.

Nov 9, 2022 8-K

Earnings & ResultsLeadership ChangesExhibits & Filings

AppLovin Corp 8-K Report, Financial Results (Aug 10, 2022)

AppLovin reported second-quarter 2022 revenue of $776 million, up 16% year over year, driven by a 118% increase in Software Platform revenue to $318 million. Adjusted EBITDA rose 47% to $270 million, a 35% margin, but the company posted a GAAP net loss of $22 million, compared with net income of $14 million a year earlier. The Software Platform is becoming the larger business: it represented 41% of revenue, up from 22%, and its Adjusted EBITDA margin was 62%. Software Platform Enterprise Clients (SPECs) reached 503, and net dollar-based retention was 204%. The Apps segment is the weak spot. Apps revenue fell 12% to $459 million, and management lowered full-year 2022 Apps revenue guidance to $1.70-$1.85 billion from $2.00-$2.15 billion. Total 2022 revenue guidance was cut to $2.84-$3.14 billion from $3.14-$3.44 billion, while the $1.2 billion Adjusted EBITDA midpoint was maintained, implying a higher margin of 37%-40%. Management is conducting a strategic review of Apps that may include divesting studios, and it cut about 12% of the workforce, mostly in Apps. Other items include a $750 million share repurchase program, with about $339 million repurchased at an average price of roughly $38 per share through August 10, 2022. The Chief Accounting Officer, Elena Arutunian, resigned effective two business days after the 10-Q filing, and the company stated the departure was not due to any disagreement. The press release also referenced a non-binding proposal to combine with Unity, which the 8-K does not describe in detail.

Aug 10, 2022 8-K

AppLovin Corp 8-K Report, Corporate Update (Aug 9, 2022)

AppLovin (NASDAQ: APP) disclosed on August 9, 2022 that it has submitted a non-binding proposal to the Board of Unity Software (NYSE: U) to combine the two companies in an all-stock merger. Each Unity share would be exchanged for 1.152 AppLovin Class A voting shares and 0.314 AppLovin Class C non-voting shares. The terms value Unity at $58.85 per share and roughly $20 billion in enterprise value, a 48% premium to Unity's July 12, 2022 price and 18% above AppLovin's closing price of August 8. Unity shareholders would own about 55% of the combined company, while AppLovin shareholders would own about 45% and about 51% of the voting power. The proposal is not yet agreed, since it requires Unity board acceptance and a definitive merger agreement. It is also conditioned on terminating AppLovin's pending acquisition of ironSource. Management's case rests on synergies and scale. AppLovin projects a combined run-rate revenue above $7 billion and run-rate Adjusted EBITDA above $3 billion by end-2024, with synergies of at least $500 million in 2024 and over $700 million in 2025. Under the proposal, Unity CEO John Riccitiello would lead the combined company and AppLovin CEO Adam Foroughi would serve as COO. Unity would appoint a majority of the reconstituted board. AppLovin also said it is highly confident the deal could close on a timely basis, subject to regulatory and shareholder approvals. Alongside the proposal, AppLovin reaffirmed its 2022 Software Platform revenue guidance of $1.14 to $1.29 billion and Adjusted EBITDA midpoint of $1.2 billion. It lowered Apps revenue guidance to $1.70 to $1.85 billion from $2.00 to $2.15 billion, reducing total revenue guidance to $2.84 to $3.14 billion. Investors should treat the proposal as preliminary: Unity has not responded, the exchange ratios may change with capitalization, and the Apps guidance cut signals a deliberate reset of spending in that business.

Aug 9, 2022 8-K

Earnings & ResultsRegulation FDExhibits & Filings

AppLovin Corp 8-K Report, Shareholder Vote Results (Jun 10, 2022)

AppLovin Corporation (APP) filed an 8-K on June 9, 2022, detailing the outcomes of its annual stockholder meeting held on June 8, 2022. The primary focus of this filing is the voting results on several key proposals. Investors will be interested to know that all director nominees were elected, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2022 was ratified. Additionally, the compensation of named executive officers was approved on an advisory basis, with stockholders favoring an annual vote on this matter. Furthermore, a significant outcome was the approval of an amendment to the Company's 2021 Partner Studio Incentive Plan, which will increase the number of authorized Class A common stock shares available for issuance. This move is typically aimed at providing equity incentives to employees and partners, which can be a crucial factor in talent retention and motivation for growth-stage companies like AppLovin.

Jun 10, 2022 8-K

AppLovin Corp 8-K Report, Financial Results (May 11, 2022)

AppLovin (APP) reported first quarter 2022 results on May 11, 2022, with revenue of $625 million, which was reduced by $210 million of non-recurring publisher bonuses recorded as contra-revenue tied to the MoPub migration to its MAX platform. Excluding those bonuses, combined revenue would have been $835 million, up from $604 million in 1Q21. Adjusted EBITDA more than doubled year-over-year to $276 million (44% margin, or 33% excluding publisher bonuses), while the company reported a GAAP net loss of $115 million versus $11 million a year earlier, driven largely by the bonuses and higher operating costs including acquisition-related and MoPub transition expenses. The Software Platform business showed strong momentum: Software Platform Enterprise Clients (SPEC) rose 149% year-over-year to 481, and Net Dollar-Based Revenue Retention was 137% (258% excluding publisher bonuses). Software Platform revenue was $119 million for the quarter, while Apps revenue declined sequentially. Management is shifting the Apps business to operate as a standalone asset under review (retention, restructuring, sale, or no change), and will begin reporting two segments in 2Q22. Full-year 2022 guidance was revised: total revenue was lowered to $3.14–$3.44 billion (from $3.55–$3.85 billion) after excluding the $210 million bonuses, Apps revenue guidance was cut, and Adjusted EBITDA midpoint was raised to $1.2 billion (mid-30s margin). Management also maintained a $2 billion Software Platform revenue target for 2023 and authorized a $750 million share repurchase program. Investors should weigh the strong cash-generation story against the GAAP losses, the reliance on the Apps business in the near term, and the non-GAAP nature of the headline Adjusted EBITDA figures.

May 11, 2022 8-K

Securities & ListingOther Events

AppLovin Corp 8-K Report, Unregistered Securities Sale (Feb 28, 2022)

AppLovin Corporation (APP) filed an 8-K on February 27, 2022, disclosing two key events. Firstly, the company announced an agreement to acquire Wurl, Inc., a connected TV (CTV) advertising and measurement company, by issuing approximately 2.7 million shares of its Class A common stock. This acquisition, valued based on AppLovin's average stock price over a 30-day period, will be treated as a private placement under securities law, with shares subject to adjustment. Secondly, AppLovin's board of directors authorized a significant share repurchase program, allowing for the buyback of up to $750 million of its Class A common stock. This program provides flexibility for repurchases through various methods, including open market transactions and Rule 10b-18 compliant strategies, and can be suspended at any time. The filing also sets deadlines for stockholder proposals for the upcoming 2022 Annual Meeting of Stockholders, scheduled for June 8, 2022.

Feb 28, 2022 8-K