Financial Data and Key Metrics Changes - The company reported total revenue of $1.06 billion, a nearly 50% increase from the same period last year, while adjusted EBITDA doubled to $549 million, representing a 52% margin [9][10] - Free cash flow generated during the first quarter was $388 million, reflecting a 71% flow-through from adjusted EBITDA [9] - The software platform revenue grew from $355 million to $678 million, with adjusted EBITDA of $492 million, maintaining a 73% margin [9][10] Business Line Data and Key Metrics Changes - The software platform had a significant performance, with revenue more than doubling from the previous year and adjusted EBITDA also more than doubling [9][10] - The apps portfolio maintained a stable adjusted EBITDA margin of 15% [10] Market Data and Key Metrics Changes - The mobile advertising market is experiencing expansion, contributing to the company's strong performance [10] - The company noted that the non-gaming app space is growing faster than the gaming app space on its platform [19] Company Strategy and Development Direction - The company aims to drive growth through ongoing improvements to its AXON platform and by expanding into web-based marketing and e-commerce [7][10] - The focus remains on performance-based advertising rather than brand advertising, leveraging measurable results to attract advertisers [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for continued growth driven by technology improvements and market expansion [8][10] - The company believes that its unique culture and lean structure enable it to innovate faster than competitors [5][6] Other Important Information - The company amended its term loans to reduce interest expenses and repurchased approximately 3% of its total shares outstanding [11] - Guidance for the second quarter includes expected revenue between $1.06 billion and $1.08 billion and adjusted EBITDA between $550 million and $570 million [11] Q&A Session Summary Question: Can you provide insights on the sources of outperformance this quarter? - Management indicated that growth vectors include adding more advertisers and improvements in core models, which are self-learning and continuously enhancing [14][15] Question: What is the status of efforts outside the gaming vertical? - Management confirmed ongoing success in non-gaming apps and plans to launch web advertising products this quarter [19][20] Question: How is the sales process evolving? - Management emphasized a product-first approach, noting that growth is largely driven by technology rather than a significant sales force [21][22] Question: What is the trajectory for header bidding revenue? - Management did not disclose specific revenue figures but noted a positive trend in header bidding adoption [26] Question: How does the company view competition? - Management believes that the complexity of their technology creates a significant barrier to entry for competitors, allowing them to maintain a leadership position [54][56] Question: Can you comment on the growth of the advertising market? - Management indicated that the MAX marketplace is growing significantly, serving as a good proxy for the mobile gaming advertising market [60][62] Question: What are the expectations for net revenue per install and installation volume? - Management noted an increase in both metrics, correlating with increased advertiser spend and improvements in technology [63][64]

Mobile app marketing platform AppLovin (APP) late Wednesday smashed Wall Street's targets for the first quarter and guided higher for the current period. AppLovin stock jumped in extended trading.X The Palo Alto, Calif.-based company earned 67 cents a share on sales of $1.06 billion in the March-ended quarter. Analysts polled by FactSet had expected earnings of 57 cents a share on sales of $974 million. In the year-earlier period, AppLovin lost a penny a share on sales of $715 million.For the current quarte ...

Revenue Growth and Financial Performance - Revenue increased 48% year-over-year to $1.06 billion for the three months ended March 31, 2024, compared to $715.4 million in the same period in 2023[82] - Revenue for Q1 2024 was $1,058.1 million, a 48% increase from $715.4 million in Q1 2023[112] - Total Revenue increased by $342.7 million, or 48%, reaching $1,058.1 million, driven by growth in Software Platform Revenue and a 5% increase in Apps Revenue[119][120] - Net income for Q1 2024 was $236.2 million, compared to a net loss of $4.5 million in Q1 2023[82] - Net income for Q1 2024 was $236.2 million, compared to a net loss of $4.5 million in Q1 2023[112] - Income from operations for Q1 2024 was $339.6 million, a significant increase from $61.0 million in Q1 2023[112] - Adjusted EBITDA for Q1 2024 was $548.8 million, up from $273.7 million in Q1 2023, with an Adjusted EBITDA margin of 51.9%[82][94] - Free Cash Flow for Q1 2024 was $387.6 million, compared to $283.1 million in Q1 2023[82][96] - Software Platform Adjusted EBITDA increased by $273.3 million, or 125%, driven by higher Software Platform Revenue, partially offset by increased network infrastructure expenses[130] - Apps Adjusted EBITDA increased by $1.7 million, or 3%, due to higher Apps Revenue, partially offset by increased user acquisition costs and third-party payment processing fees[131] Software Platform and Apps Revenue - Software Platform Revenue accounted for 64% of total revenue in Q1 2024, while Apps Revenue represented 36%[83] - Software Platform Revenue increased by $323.6 million, or 91%, primarily due to improved AppDiscovery performance with a 5% increase in net revenue per installation and an 87% increase in installation volume[120] - In-app purchase (IAP) revenue represented 68% of total Apps Revenue in Q1 2024, while in-app advertising (IAA) revenue accounted for 32%[87] - In-App Purchases (IAP) Revenue increased by $7.9 million, or 3%, due to a 4% increase in purchase volume, partially offset by a 1% decrease in price per purchase[120] - In-App Advertising (IAA) Revenue increased by $11.2 million, or 10%, driven by a 113% increase in advertising impressions, partially offset by a 48% decrease in price per impression[120] User Metrics and Engagement - Average Monthly Active Payers (MAPs) remained stable at 1.8 million in Q1 2024, with an Average Revenue Per Monthly Active Payer (ARPMAP) of $48, up from $46 in Q1 2023[87][90] Cost and Expense Management - Cost of revenue for Q1 2024 was $294.1 million, representing 28% of revenue, down from 37% in Q1 2023[112][117] - Cost of Revenue increased by $32.2 million, or 12%, primarily due to a $35.5 million increase in network infrastructure expenses, offset by an $8.6 million decrease in amortization of intangible assets[122] - Research and development expenses for Q1 2024 were $155.3 million, representing 15% of revenue, down from 20% in Q1 2023[112][117] - Sales and marketing expenses for Q1 2024 were $226.7 million, representing 21% of revenue, down from 28% in Q1 2023[112][117] - General and administrative expenses for Q1 2024 were $42.4 million, representing 4% of revenue, down from 6% in Q1 2023[112][117] Investments and Acquisitions - $4.1 billion invested in 33 strategic acquisitions and partnerships from 2018 through March 31, 2024, including MAX, Adjust, MoPub, and Wurl[102] - Significant investments in the Software Platform, including AI-powered advertising engine AXON, AppDiscovery, Adjust, and MAX, to enhance effectiveness and enter new verticals outside of gaming[98][99] - The company invested $10.0 million in the first tranche of Series C preferred stock financing of Humans, Inc. in February 2024[139] - The company committed to invest an additional $40.0 million in the second tranche of Series C preferred stock financing of Humans, Inc. as of March 31, 2024[139] Shareholder Returns and Financial Position - The company repurchased shares of its Class A common stock, reflecting its strong financial position and commitment to shareholder returns[82] - The company repurchased 13,466,397 shares of Class A common stock for $752.2 million during the quarter[137] - Net cash provided by operating activities was $392.8 million, primarily consisting of $236.2 million of net income adjusted for non-cash items, including $112.7 million in amortization and depreciation[134] - Net cash used in financing activities was $424.6 million, primarily due to $752.2 million in stock repurchases, partially offset by $1,072.3 million in debt issuance proceeds[136] Debt and Credit Facilities - The company amended its Credit Agreement in March 2024, reducing the interest rate margin for SOFR loans from 3.1% to 2.5% and for base rate loans from 2.0% to 1.5%[138] - The company increased the aggregate principal amount of the 2030 Term Loan to $2.09 billion and reduced the 2028 Term Loan to $1.46 billion[138] - The company drew down an additional $418.7 million from the revolving credit facility in March 2024 to fund share repurchases[138] - The company repaid the entire outstanding amount under the revolving credit facility of $603.7 million by March 31, 2024[138] - KKR Corporate Lending (CA) LLC provided revolving credit commitments of $15.0 million under the company's revolving credit facility[138] International Revenue - 41% of revenue from Software Platform and IAA Revenue clients was generated from outside the United States in Q1 2024[101] Portfolio and Tools - The company's portfolio includes over 200 free-to-play mobile games across five genres, managed by ten studios[82] - Key software tools like AppDiscovery, MAX, Adjust, and Wurl drive revenue growth through user acquisition, ad optimization, and analytics[86] Accounting and Risk Management - The company's condensed consolidated financial statements are prepared in accordance with GAAP, requiring estimates and assumptions that affect reported amounts[140] - There were no material changes to the company's critical accounting policies and estimates during the three months ended March 31, 2024[141] - There were no material changes in market risk from the information presented in the Annual Report on Form 10-K for the year ended December 31, 2023[144]

| --- | --- | |-------|-------| | | | | | | To Our AppLovin Shareholders: The first quarter marked a strong start to 2024 with outstanding business performance driven by the continued improvement of our AXON technology. We were encouraged to see improvement in the app advertising market with another quarter of year-over-year market growth and a continued shift to real-time bidding. By continuing to innovate and improve our AXON technology, we remain committed to driving growth not just for our company, but ...

Investors are always looking for stocks that are poised to beat at earnings season and AppLovin Corporation (APP) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because AppLovin is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...

AppLovin (APP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 8. On the o ...

AppLovin (APP) ended the recent trading session at $72.99, demonstrating a -1.12% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.35%.The mobile app technology company's shares have seen an increase of 6.65% over the last month, surpassing the Business Services sector's loss of 4.37% and the S&P 500's loss of 2%.Market participants will be closely following the financial ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering AppLovin (APP) , which belongs to the Zacks Technology Services industry.This mobile app technology company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 25.56%.For the last reported quarter, AppLovin came out with earnings of $0.49 per share versus ...

Company Overview - AppLovin's stock closed at $66.63, reflecting a -0.25% change from the previous trading day, underperforming the S&P 500's gain of 0.87% [1] - The stock has decreased by 6.22% over the past month, contributing to a 7.27% loss in the Business Services sector, which is worse than the S&P 500's loss of 3.97% [1] Upcoming Financial Results - AppLovin is set to announce its earnings on May 8, 2024, with an expected EPS of $0.56, indicating a significant growth of 5700% compared to the same quarter last year [1] - The consensus estimate for revenue is $969.05 million, representing a year-over-year increase of 35.45% [1] Full-Year Estimates - The Zacks Consensus Estimates for AppLovin's full-year earnings are $2.47 per share and revenue of $4.05 billion, reflecting year-over-year changes of +152.04% and +23.34%, respectively [2] Analyst Sentiment - Recent changes to analyst estimates for AppLovin indicate positive sentiment, as revisions often correlate with near-term share price momentum [2] - AppLovin currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate having decreased by 0.35% over the past month [3] Valuation Metrics - AppLovin has a Forward P/E ratio of 27, which is a premium compared to the industry average of 22.36 [3] - The company's PEG ratio stands at 1.35, while the Technology Services industry average PEG ratio is 1.52 [3] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 148, placing it in the bottom 42% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

AppLovin (APP) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this mobile app technology company have returned -6.2% over the past month versus the Zacks S&P 500 composite's -4% change. The Zacks Technology Services industry, to which AppLovin belongs, has lost 9.6% over this period. Now the key question is: Where could the stock be headed in the near term?Although me ...