AppLovin Corp (NASDAQ: APP) — a company providing a full suite of solutions for mobile app developers, including marketing, monetization, and analytics — recently posted strong quarterly results. The company reported earnings of $1.73 per share on revenue of $1.37 billion for Q4, surpassing analyst expectations of $1.24 per share on $1.26 billion in revenue. Additionally, its optimistic outlook drove the stock up nearly 30% in after-hours trading.CHONGQING, CHINA - FEBRUARY 9: In this photo illustration, th ...

Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1.37 billion, while adjusted EBITDA rose by 78% to $848 million, achieving a 62% adjusted EBITDA margin [21][49]. - Free cash flow for Q4 was $695 million, up 105% year-over-year, with a quarter-over-quarter growth of 28% [22][50]. - The company ended Q4 with $741 million in cash and cash equivalents [23][51]. Business Line Data and Key Metrics Changes - The Advertising business generated $999 million in revenue and $777 million in adjusted EBITDA, achieving a 78% margin [23][51]. - Apps revenue for the quarter was $373 million, a 1% decrease from last year, with $71 million in adjusted EBITDA, representing a 19% margin [26][54]. Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a platform that reaches over 1 billion people daily [10][14]. - The early pilots for ecommerce advertisers showed positive outcomes, indicating a broader market opportunity [12][40]. Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [19][47]. - An exclusive term sheet has been signed to sell the Apps business for an estimated $900 million, including $500 million in cash [25][53]. - The focus for 2025 includes developing automated tools to allow more businesses to utilize the platform effectively [15][44]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the ecommerce segment, anticipating it to contribute materially to revenue in 2025 [84]. - The company aims to leverage AI and automation to enhance operational efficiency and drive growth [65][86]. Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the Advertising business, with expectations for this metric to rise as processes are refined [19][47]. - The company has repurchased or withheld a total of 25.7 million shares for a total cost of $2.1 billion during the year [28][56]. Q&A Session Summary Question: Insights on ecommerce growth and scaling - Management confirmed that the platform's technology works across various categories, indicating confidence in scaling beyond DTC marketers [62][64]. Question: Model enhancements and their impact on growth - Management noted ongoing improvements in their models contributed to growth, alongside seasonal factors during Q4 [76][80]. Question: Expectations for ecommerce contribution in 2025 - Management remains confident in ecommerce's material contribution to revenue in 2025, though specifics on timing and amount remain uncertain [84][85]. Question: Inventory conversion for ecommerce vs gaming - Management clarified that the same inventory is used for both ecommerce and gaming, with full-screen video ads being the primary format [125]. Question: Take rate dynamics between gaming and ecommerce - Management indicated that as monetization improves, the take rate naturally increases, but they do not optimize for it [131][132].

AppLovin (APP) reported $1.37 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 44%. EPS of $1.73 for the same period compares to $0.49 a year ago.The reported revenue represents a surprise of +8.62% over the Zacks Consensus Estimate of $1.26 billion. With the consensus EPS estimate being $1.34, the EPS surprise was +29.10%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Wednesday, February 12, 2025Market indexes fought back courageously today, after sinking an hour before the opening bell on hotter-than-expected Consumer Price Index (CPI) numbers. Although it demonstrates a stronger economy than most analysts had predicted we’d be in by this time, higher CPI is an inflationary metric — not good for interest rates nor the price of eggs coming down.The Dow, which had been down more than -400 points to start the trading session, finished down -225 points. The S&P 500 closed - ...

AppLovin (APP) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 29.10%. A quarter ago, it was expected that this mobile app technology company would post earnings of $0.95 per share when it actually produced earnings of $1.25, delivering a surprise of 31.58%.Over the last four quarters ...

Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1,370 million, with adjusted EBITDA rising by 78% to $848 million, achieving a 62% adjusted EBITDA margin [14][18] - Free cash flow grew by 105% year-over-year to $695 million, with a quarter-over-quarter increase of 28%, representing an 82% flow-through from adjusted EBITDA to free cash flow [14][15] - The company ended the quarter with $741 million in cash and cash equivalents [15] Business Line Data and Key Metrics Changes - The advertising business generated $999 million in revenue with an adjusted EBITDA of $777 million, achieving a 78% margin [15] - Apps revenue for the quarter was $373 million, a 1% decrease from the previous year, with adjusted EBITDA of $71 million, representing a 19% margin [18] Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a significant opportunity to attract over 10 million businesses worldwide that advertise online [8][9] - The advertising platform is expected to drive incremental demand by enabling product discovery while users engage with mobile games [9] Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [12] - An exclusive term sheet has been signed to sell the apps business, allowing the company to focus on its advertising strategy [11][16] - The company aims to develop automated tools to facilitate onboarding for a larger number of advertisers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the platform's potential to transform global marketing and highlighted the importance of operational excellence [12] - The company anticipates continued growth in the advertising business, with expectations for e-commerce to contribute materially in 2025 [37][38] - Management noted that the advertising models are continuously improving, which is expected to drive revenue growth [40] Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the advertising business, with expectations for this metric to rise as processes are refined [12] - The company is focused on maintaining its cultural values while scaling operations and developing tools for automation [23] Q&A Session Summary Question: Early benefits for a range of different brands in various verticals - Management confirmed that the platform is seeing success across multiple categories, indicating confidence in scaling beyond direct-to-consumer marketers [22][23] Question: Model enhancements and growth factors - Management highlighted ongoing learning and seasonal advantages as key contributors to growth, with expectations for continued improvement in models [32][35] Question: E-commerce contribution in 2025 - Management remains confident in e-commerce contributing materially to revenue in 2025, though the timing and amount of growth are difficult to predict [37][38] Question: Pilot program for e-commerce advertisers - Management indicated that the pilot program is limited in scale, with a small team managing onboarding, but sees potential for significant growth as self-service tools are developed [46][49] Question: Competitive response to e-commerce rollout - Management noted that the platform is driving incremental sales for advertisers, expanding the overall market rather than taking dollars from competitors [54][56] Question: Go-to-market strategy for e-commerce - Management is focused on mid-market B2C companies for the pilot, with a strong demand for onboarding as positive results are reported [60][62] Question: Inventory conversion for e-commerce vs gaming - Management stated that the same inventory is used for both e-commerce and gaming, with full-screen video ads being effective across categories [68] Question: Take rate dynamics between gaming and e-commerce - Management explained that as monetization improves, the take rate naturally increases, but they do not optimize for it [75] Question: Self-service rollout for Audience Plus - Management indicated that self-service will be launched when ready, focusing on automation and fraud prevention [116][117]

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts' estimates and issued better-than-expected guidance.Here's how the company performed compared with analysts' expectations, according to LSEG:Earnings per share: $1.73 vs. $1.24 expectedRevenue: $1.37 billion vs. $1.26 billion expectedNet income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year ear ...

Revenue Performance - Advertising revenue for Q4 2024 reached $999.5 million, a 73% increase from $576.5 million in Q4 2023[2] - Total revenue for the full year 2024 was $4.71 billion, up 43% from $3.28 billion in 2023[2] - Revenue for Q4 2024 reached $1,372,779, a 44% increase from $953,261 in Q4 2023[18] - Full-year revenue for 2024 was $4,709,248, up 43% from $3,283,087 in 2023[18] - Advertising segment revenue for Q4 2024 was $999,487, up 73% from $576,489 in Q4 2023[24] Net Income and Profitability - Net income for Q4 2024 was $599.2 million, representing a 248% increase compared to $172.2 million in Q4 2023[2] - Net income for Q4 2024 was $599,204, compared to $172,233 in Q4 2023, representing a 248% increase[18] - The company reported a net margin of 44% for Q4 2024, significantly higher than 18% in Q4 2023[22] Cash Flow and Financial Health - Free cash flow for the full year 2024 was $2.1 billion, with Q4 free cash flow at $695 million[5] - Total cash provided by operating activities for 2024 was $2,099,011, an increase of 97% from $1,061,510 in 2023[20] - Free Cash Flow for 2024 was $2,073,360, compared to $1,037,094 in 2023, reflecting a 100% increase[21] - Cash and cash equivalents as of December 31, 2024, were $741.4 million, up from $502.2 million in 2023[17] - The cash and cash equivalents at the end of 2024 were $741,411, up from $502,152 at the end of 2023[20] Share Repurchase and Debt Management - The company repurchased 1.6 million shares in Q4 2024 at a cost of $0.5 billion, totaling 25.7 million shares repurchased for $2.1 billion in the full year[5] - Principal repayments of debt in 2024 totaled $4,225,223, compared to $497,994 in 2023[20] Future Outlook - The company expects Q1 2025 total revenue to be between $1.355 billion and $1.385 billion[3] Segment Changes - The company has renamed its "Software Platform" segment to "Advertising" to better align with its core business focus[3] Asset Growth - Total assets increased to $5.87 billion in 2024 from $5.36 billion in 2023[17] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $848 million, an increase of 78% from $476.2 million in Q4 2023[2] - Adjusted EBITDA for 2024 was $2,719,605, a 81% increase from $1,502,658 in 2023[22]

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Core Insights - AppLovin Corporation (APP) is expected to announce its fourth-quarter 2024 financial results on February 12, with strong year-over-year revenue growth anticipated, primarily from its Software Platform segment [1] Revenue Projections - The consensus estimate for Software Platform revenues is $892.7 million, reflecting a substantial 54.8% increase year-over-year, driven by the advanced AXON 2.0 technology [2] - Total revenues for AppLovin are projected to reach $1.26 billion, indicating a robust 32.3% increase from the same quarter last year, highlighting the effectiveness of strategic expansion efforts [3] Profitability Expectations - The consensus estimate for Software Platform's adjusted EBITDA is $683.7 million, indicating remarkable 62.7% year-over-year growth, while total adjusted EBITDA is projected to rise 35.5% year-over-year [4] Earnings Per Share - Earnings per share (EPS) are expected to show a massive 161.2% increase, with the Zacks Consensus Estimate at $1.28, reinforcing AppLovin's position in the digital advertising and gaming industries [5]