AppLovin Announces Fourth Quarter and Full Year 2024 Financial Results

AppLovin Corporation (NASDAQ: APP) (“AppLovin”), a leading marketing platform, today announced financial results for the quarter and full year ended December 31, 2024 and posted a letter to its shareholders and a financial update on its Investor Relations website located at https://investors.applovin.com.

Fourth Quarter and Full Year 2024 Financial Highlights:

Quarter Ended

Year Ended

(In thousands, except percentages)

December 31,

2024

2023

% Change

2024

2023

% Change

Advertising Revenue1

999,487

576,489

3,224,058

1,841,762

Apps Revenue

373,292

376,772

1,485,190

1,441,325

Total Revenue

1,372,779

953,261

4,709,248

3,283,087

Advertising Adjusted EBITDA

776,699

420,008

2,442,597

1,275,705

Apps Adjusted EBITDA

71,325

56,147

277,008

226,953

Adjusted EBITDA

848,024

476,155

2,719,605

1,502,658

Net Income

599,204

172,233

248

1,579,776

356,711

343

Additional Financial Highlights:

Net cash from operating activities was $701 million and $2.1 billion, and Free Cash Flow was $695 million and $2.1 billion for the fourth quarter and full year 2024, respectively.
During the fourth quarter and full year 2024, we retired and withheld 1.6 million and 25.7 million of our Class A common stock, for a total cost of $0.5 billion and $2.1 billion, respectively2. At the end of 4Q 2024, we had 340 million shares of our Class A and Class B common stock outstanding.

First Quarter 2025 Financial Guidance Summary3

(In millions, except percentages)

1Q25

Low

High

Advertising Revenue

1,030

1,050

Apps Revenue

325

335

Total Revenue

1,355

1,385

Advertising Adjusted EBITDA

805

825

Apps Adjusted EBITDA

Total Adjusted EBITDA

855

885

Total Adjusted EBITDA Margin

Webcast and Conference Calls

AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company’s fourth quarter and full year 2024 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.

The webinar may be accessed on the Company’s investor relations website or via webinar registration. A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.

About AppLovin

AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going to,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include our expected financial results and guidance, and growth prospects. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties, including changes in our plans or assumptions, which could cause actual results to differ materially from those projected. These risks include our inability to forecast our business effectively, the macroeconomic environment, fluctuations in our results of operations, our ability to execute on our operational and financial priorities, our ability to scale our Advertising to support new users, the competitive advertising and mobile app ecosystems, and our inability to adapt to emerging technologies and business models. The forward-looking statements contained in this letter are also subject to other risks and uncertainties, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The forward-looking statements in this letter are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Metrics

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), this shareholder letter includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP measure can be found below.

We define Adjusted EBITDA for a particular period as net income (loss) before interest expense and loss on settlement of debt, other income, net (excluding certain recurring items), provision for (benefit from) income taxes, amortization, depreciation and write-offs and as further adjusted for non-operating foreign exchange (gains) losses, stock-based compensation expense, acquisition-related expense, restructuring costs, loss on disposal of long-lived assets, as well as certain other items that we believe are not reflective of our core operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue for the same period.

We define Free Cash Flow as net cash provided by operating activities less purchases of property and equipment and principal payments on finance leases. We subtract both purchases of property and equipment and payment of finance leases in our calculation of Free Cash Flow because we believe these items represent our ongoing requirements for property and equipment to support our business, regardless of whether we utilize a finance lease to obtain such property or equipment.

We believe that the presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and operating performance, as they are similar to measures reported by our public competitors and are regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects.

Adjusted EBITDA and Adjusted EBITDA margin are key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. We believe Adjusted EBITDA and Adjusted EBITDA margin are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. We use Adjusted EBITDA and Adjusted EBITDA margin in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We use Free Cash Flow in addition to GAAP measures to help manage our business and prepare budgets and annual planning, and we believe Free Cash Flow provides useful supplemental information to help investors understand underlying trends in our business and our liquidity.

These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

AppLovin Corporation

Consolidated Balance Sheets

(In thousands, except share and per share data)

(unaudited)

December 31, 2024

December 31, 2023

Assets

Current assets:

Cash and cash equivalents

741,411

502,152

Accounts receivable, net

1,414,246

953,810

Prepaid expenses and other current assets

156,533

160,201

Total current assets

2,312,190

1,616,163

Property and equipment, net

160,530

173,331

Operating lease right-of-use assets

38,069

48,210

Goodwill

1,803,426

1,842,850

Intangible assets, net

896,677

1,292,635

Other assets

658,367

385,998

Total assets

5,869,259

5,359,187

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

563,427

371,702

Accrued and other current liabilities

409,392

265,256

Short-term debt

—

215,000

Deferred revenue

69,839

78,559

Operating lease liabilities, current

14,814

13,605

Total current liabilities

1,057,472

944,122

Long-term debt

3,508,983

2,905,906

Operating lease liabilities, non-current

32,608

42,905

Other non-current liabilities

180,378

209,925

Total liabilities

4,779,441

4,102,858

Stockholders’ equity:

Preferred stock, $0.00003 par value—100,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and 2023

—

Class A, Class B, and Class C Common stock, $0.00003 par value—1,850,000,000 (Class A 1,500,000,000, Class B 200,000,000, Class C 150,000,000) shares authorized, 340,041,739 (Class A 309,353,198, Class B 30,688,541, Class C nil) and 339,886,712 (Class A 268,774,090, Class B 71,112,622, Class C nil) shares issued and outstanding as of December 31, 2024 and 2023, respectively

Additional paid-in capital

593,699

2,134,581

Accumulated other comprehensive loss

(103,096

)

(65,274

)

Retained earnings (Accumulated deficit)

599,204

(812,989

)

Total stockholders’ equity

1,089,818

1,256,329

Total liabilities and stockholders’ equity

5,869,259

5,359,187

AppLovin Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Quarter Ended December 31,

Year Ended December 31,

2024

2023

2024

2023

Revenue

1,372,779

953,261

4,709,248

3,283,087

Costs and expenses:

Cost of revenue

320,452

273,607

1,166,806

1,059,191

Sales and marketing

214,662

222,963

849,209

830,718

Research and development

169,480

150,823

638,689

592,386

General and administrative

60,205

36,354

181,085

152,585

Total costs and expenses

764,799

683,747

2,835,789

2,634,880

Income from operations

607,980

269,514

1,873,459

648,207

Other income (expense):

Interest expense and loss on settlement of debt

(94,199

)

(71,584

)

(318,260

)

(275,665

)

Other income (expense), net

1,343

(19,034

)

20,806

8,028

Total other expense, net

(92,856

)

(90,618

)

(297,454

)

(267,637

)

Income before income taxes

515,124

178,896

1,576,005

380,570

Provision for (benefit from) income taxes

(84,080

)

6,663

(3,771

)

23,859

Net income

599,204

172,233

1,579,776

356,711

Net income attributable to AppLovin

599,204

172,233

1,579,776

356,711

Less: Net income attributable to participating securities

150

714

2,717

1,769

Net income attributable to common stock—Basic

599,054

171,519

1,577,059

354,942

Net income attributable to common stock—Diluted

599,057

171,540

1,577,144

354,993

Net income per share attributable to Class A and Class B common stockholders:

Basic

1.77

0.51

4.68

1.01

Diluted

1.73

0.49

4.53

0.98

Weighted average common shares used to compute net income per share attributable to Class A and Class B common stockholders:

Basic

339,168,374

337,136,956

336,921,483

351,952,187

Diluted

346,423,848

347,492,545

347,807,555

362,589,246

AppLovin Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Year Ended December 31,

2024

2023

Operating Activities

Net income

1,579,776

356,711

Adjustments to reconcile net income to operating activities:

Amortization, depreciation and write-offs

448,680

489,008

Stock-based compensation, excluding cash-settled awards

369,367

363,107

Impairment of investments

—

27,953

Loss on settlement of debt

28,375

4,337

Change in operating right-of-use assets

12,689

17,842

Amortization of debt issuance costs and discount

5,460

9,363

Loss on disposal of long-lived assets

1,646

—

Other

2,557

1,863

Changes in operating assets and liabilities

Accounts receivable

(467,028

)

(261,279

)

Prepaid expenses and other current assets

4,056

(12,280

)

Other assets

(189,387

)

(121,688

)

Accounts payable

189,585

98,574

Operating lease liabilities

(14,106

)

(18,612

)

Accrued and other liabilities

133,974

92,754

Deferred revenue

(6,633

)

13,857

Net cash provided by operating activities

2,099,011

1,061,510

Investing Activities

Purchase of non-marketable equity securities

(76,983

)

(17,934

)

Acquisitions of businesses and intangible assets

(25,553

)

(63,899

)

Purchase of property and equipment

(4,776

)

(4,246

)

Proceeds from sale of assets and other

558

8,250

Net cash used in investing activities

(106,754

)

(77,829

)

Financing Activities

Principal repayments of debt

(4,225,223

)

(497,994

)

Payments of withholding taxes related to net share settlement

(1,143,525

)

(246,435

)

Repurchases of common stock

(981,297

)

(1,153,593

)

Payments of deferred acquisition costs

—

(33,903

)

Payments of licensed asset obligation

—

(27,110

)

Payments of debt issuance cost

(35,563

)

(4,655

)

Principal payments of finance leases

(20,875

)

(20,170

)

Proceeds from issuance of debt

4,614,841

395,281

Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares

41,798

25,788

Net cash used in financing activities

(1,749,844

)

(1,562,791

)

Effect of foreign exchange rate on cash and cash equivalents

(3,154

)

778

Net (decrease) increase in cash and cash equivalents

239,259

(578,332

)

Cash and cash equivalents at beginning of the period

502,152

1,080,484

Cash and cash equivalents at end of the period

741,411

502,152

AppLovin Corporation

Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow

(in thousands)

The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow for the periods presented:

Quarter Ended

Year Ended December 31,

4Q24

4Q23

2024

2023

Net cash provided by operating activities

701,003

343,988

2,099,011

1,061,510

Less:

Purchase of property and equipment

(490

)

(244

)

(4,776

)

(4,246

)

Principal payments on finance leases

(5,351

)

(3,979

)

(20,875

)

(20,170

)

Free Cash Flow

695,162

339,765

2,073,360

1,037,094

Net cash used in investing activities

(367

)

(6,804

)

(106,754

)

(77,829

)

Net cash used in financing activities

(523,157

)

(170,524

)

(1,749,844

)

(1,562,791

)

AppLovin Corporation

Reconciliation of Net Income to Adjusted EBITDA

(in thousands, except percentages)

The following table provides our Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of Net Income to Adjusted EBITDA for the periods presented:

Quarter Ended

Year Ended December 31,

4Q24

4Q23

2024

2023

Revenue

1,372,779

953,261

4,709,248

3,283,087

Net income

599,204

172,233

1,579,776

356,711

Net Margin

Interest expense and loss on settlement of debt

94,199

71,584

318,260

275,665

Other income (expense), net

(8,302

)

18,528

(25,440

)

(7,831

)

Provision for (benefit from) income taxes

(84,080

)

6,663

(3,771

)

23,859

Amortization, depreciation and write-offs

127,837

119,111

448,680

489,008

Loss on disposal of long-lived assets

—

1,646

—

Non-operating foreign exchange loss (gain)

1,450

(65

)

291

(1,224

)

Stock-based compensation

100,921

88,049

376,455

363,107

Acquisition-related expense

885

1,047

Restructuring costs

16,790

—

22,823

2,316

Total adjustments

248,820

303,922

1,139,829

1,145,947

Adjusted EBITDA

848,024

476,155

2,719,605

1,502,658

Adjusted EBITDA Margin

AppLovin Corporation

Reconciliation of Segment Adjusted EBITDA to Income Before Taxes

(in thousands, except percentages)

The following table provides selected financial data for our reportable segments for the periods indicated:

Quarter Ended

Year Ended December 31,

4Q24

4Q23

2024

2023

Revenue:

Advertising

999,487

576,489

3,224,058

1,841,762

Apps

373,292

376,772

1,485,190

1,441,325

Total Revenue

1,372,779

953,261

4,709,248

3,283,087

Segment Adjusted EBITDA:

Advertising

776,699

420,008

2,442,597

1,275,705

Apps

71,325

56,147

277,008

226,953

Total Segment Adjusted EBITDA

848,024

476,155

2,719,605

1,502,658

Interest expense and loss on settlement of debt

(94,199

)

(71,584

)

(318,260

)

(275,665

)

Other income (expense), net

8,302

(18,528

)

25,440

7,831

Amortization, depreciation and write-offs

(127,837

)

(119,111

)

(448,680

)

(489,008

)

Loss on disposal of long-lived assets

—

(1,646

)

—

Non-operating foreign exchange gain (loss)

(1,450

)

(291

)

1,224

Stock-based compensation

(100,921

)

(88,049

)

(376,455

)

(363,107

)

Acquisition-related expense

)

(52

)

(885

)

(1,047

)

Restructuring costs

(16,790

)

—

(22,823

)

(2,316

)

Income before income taxes

515,124

178,896

1,576,005

380,570

Segment Adjusted EBITDA Margin:

Advertising

Apps

_____________________________________________ 1 Our core advertising business now represents substantially all of the revenue in this segment and our future focus for the company. As a result, we have renamed our "Software Platform" segment to "Advertising" to better align with the nature of this business. 2Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions and fees, as well as cash paid in connection with tax withholding and remittance obligations upon net share settlement 3 We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this letter.

Source: AppLovin Corp.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212003292/en/

Investors David Hsiao ir@applovin.com

Press Kim Hughes press@applovin.com

Grafico Azioni Applovin (NASDAQ:APP)
Storico
Da Gen 2025 a Feb 2025