AppLovin Corporation (APP) Bundle
A Brief History of AppLovin Corporation
AppLovin Corporation, founded in 2012, has rapidly evolved into a leading player in the mobile technology sector. Initially focused on mobile gaming, the company has expanded its services to include a sophisticated software platform that enhances app discovery and monetization.
Financial Performance
As of September 30, 2024, AppLovin reported significant growth in its financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,198,235,000 | $864,256,000 | 39% |
| Net Income | $434,420,000 | $108,639,000 | 300% |
| Adjusted EBITDA | $721,616,000 | $419,291,000 | 72% |
| EPS (Basic) | $1.29 | $0.32 | 303% |
| EPS (Diluted) | $1.25 | $0.30 | 317% |
For the nine months ended September 30, 2024, the financial highlights were:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $3,336,469,000 | $2,329,826,000 | 43% |
| Net Income | $980,572,000 | $184,478,000 | 431% |
| Adjusted EBITDA | $1,871,581,000 | $1,026,503,000 | 82% |
Revenue Streams
AppLovin's revenue is primarily derived from two segments: Software Platform and Apps. For the nine months ended September 30, 2024, the breakdown was:
| Segment | Revenue | Change (%) |
|---|---|---|
| Software Platform | $2,224,571,000 | 76% |
| Apps | $1,111,898,000 | 4% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | Amount | Change (%) |
|---|---|---|
| Cost of Revenue | $846,354,000 | 8% |
| Sales and Marketing | $634,547,000 | 4% |
| Research and Development | $469,209,000 | 6% |
| General and Administrative | $120,880,000 | 4% |
Cash Flow and Liquidity
As of September 30, 2024, AppLovin reported cash and cash equivalents of $567.6 million, reflecting a robust liquidity position. The cash flows from operating activities for the nine months ended September 30, 2024, were $1,398,008,000, significantly up from $717,522,000 in the previous year.
Stock Performance and Share Repurchase
AppLovin has been active in its stock repurchase program, repurchasing 16,081,408 shares for $981.3 million during the nine months ended September 30, 2024. As of September 30, 2024, $271.0 million remains available under the authorized repurchase program.
Market Position and Future Outlook
With a strong growth trajectory and a diversified revenue model, AppLovin is well-positioned in the competitive landscape of mobile app technology. The company continues to innovate and expand its offerings, aiming for sustained growth in both revenue and market share.
A Who Owns AppLovin Corporation (APP)
Ownership Structure
As of 2024, AppLovin Corporation (APP) has a diverse ownership structure that includes institutional investors, retail investors, and company insiders. The significant shareholders are predominantly institutional investors, which play a critical role in the company's governance and strategic direction.
Top Shareholders
| Shareholder Name | Type of Ownership | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 34,228,115 | 10.21% |
| BlackRock, Inc. | Institutional | 30,895,624 | 9.12% |
| FMR LLC (Fidelity) | Institutional | 25,300,000 | 7.48% |
| SSgA Funds Management, Inc. | Institutional | 22,000,000 | 6.54% |
| AppLovin Corporation Insiders | Insider | 15,500,000 | 4.58% |
Recent Changes in Ownership
In recent months, there have been reports of increased activity among institutional investors acquiring shares in AppLovin, reflecting confidence in the company's growth potential and financial stability. For instance, the percentage of shares held by institutional investors has increased from 65% to 72% over the last year.
Insider Ownership
Insider ownership remains significant, with executives and board members holding approximately 4.58% of the total shares. This aligns their interests with those of shareholders, fostering a culture of accountability and long-term thinking within the company.
Stock Performance
As of early 2024, AppLovin's stock has shown a consistent upward trend, with a year-to-date increase of approximately 35%. The stock price is currently trading around $34 per share, reflecting investor optimism and robust financial performance, including a reported revenue of $3.34 billion for the nine months ended September 30, 2024, representing a 43% increase year-over-year.
Market Capitalization
AppLovin's market capitalization stands at approximately $11.5 billion, positioning it as one of the key players in the mobile advertising and app ecosystem.
Future Outlook
Looking ahead, analysts predict continued growth for AppLovin, driven by its innovative software platform and expansion of its mobile app portfolio. The company's strategic initiatives and partnerships are expected to further enhance its market position and shareholder value in the coming years.
AppLovin Corporation (APP) Mission Statement
Mission Overview
AppLovin's mission is to create meaningful connections between companies and their ideal customers. The company provides end-to-end software and AI-powered solutions for businesses to reach, monetize, and grow their global audience.
Business Model
AppLovin operates a diversified business model that includes a portfolio of owned mobile apps and a software platform designed for advertisers. The company has focused on building a software-based platform to improve the marketing and monetization of mobile content. As of September 30, 2024, the company’s revenue was split between its Software Platform and Apps, with Software Platform Revenue accounting for approximately 70% of total revenue.
Financial Performance
For the three months ended September 30, 2024, AppLovin reported:
- Total Revenue: $1,198,235,000
- Net Income: $434,420,000
- Adjusted EBITDA: $721,616,000
- Free Cash Flow: $1,378,198,000
Revenue Breakdown
| Revenue Type | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Software Platform Revenue | $839,764 | 70% |
| Apps Revenue | $358,471 | 30% |
Key Metrics
AppLovin tracks several key metrics to evaluate performance:
- Monthly Active Payers (MAPs): 1.6 million
- Average Revenue Per Monthly Active Payer (ARPMAP): $52
Cash Flow and Liquidity
As of September 30, 2024, AppLovin reported:
- Cash and Cash Equivalents: $567,596,000
- Total Assets: $5,442,484,000
- Total Liabilities: $4,504,278,000
Investments and Growth Strategy
Since its inception, AppLovin has invested approximately $4.1 billion in 33 strategic acquisitions and partnerships to enhance its Software Platform, including notable acquisitions like Adjust and Wurl.
Market Reach
AppLovin's global reach is significant, with 47% of revenue generated from clients outside the United States during the three months ended September 30, 2024.
How AppLovin Corporation (APP) Works
Overview of AppLovin's Business Model
AppLovin Corporation operates primarily in two segments: Software Platform and Apps. For the three months ended September 30, 2024, Software Platform Revenue constituted 70% of total revenue, while Apps Revenue accounted for 30%.
Revenue Generation
The company generates revenue through:
- Software Platform Revenue: Fees from advertisers utilizing their software technologies.
- Apps Revenue: In-app purchases (IAP) and advertising revenue from their mobile games.
Financial Performance
For the three months ended September 30, 2024, AppLovin reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,198,235,000 | $864,256,000 | 39% |
| Software Platform Revenue | $835,186,000 | $504,452,000 | 66% |
| Apps Revenue | $363,049,000 | $359,804,000 | 1% |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024:
| Segment | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Software Platform | $653,396,000 | $364,117,000 | 79% |
| Apps | $68,220,000 | $55,174,000 | 24% |
Cost Analysis
The cost of revenue for the three months ended September 30, 2024, was:
| Cost Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $269,659,000 | $265,049,000 | 2% |
| Sales and Marketing Expenses | $205,753,000 | $212,352,000 | (3)% |
| Research and Development Expenses | $149,990,000 | $159,288,000 | (6)% |
| General and Administrative Expenses | $37,899,000 | $41,249,000 | (8)% |
Net Income
Net income for the three months ended September 30, 2024, was:
| Period | Net Income | Net Income (Q3 2023) | Change (%) |
|---|---|---|---|
| Q3 2024 | $434,420,000 | $108,639,000 | 300% |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,398,008,000 | $717,522,000 |
Market Position and Clientele
AppLovin's Software Platform serves a diverse range of clients, from indie developers to major companies like Facebook and Google, providing access to over 1.4 billion daily active users.
Key Metrics
For the three months ended September 30, 2024:
| Metric | Value |
|---|---|
| Monthly Active Payers (MAPs) | 1.6 million |
| Average Revenue Per Monthly Active Payer (ARPMAP) | $52 |
Stock Performance
As of September 30, 2024, AppLovin's stock performance metrics were:
| Metric | Value |
|---|---|
| Basic EPS | $1.29 |
| Diluted EPS | $1.25 |
Conclusion on Financial Health
For the nine months ended September 30, 2024, total revenue was $3,336,469,000, representing a 43% increase compared to the previous year.
How AppLovin Corporation (APP) Makes Money
Revenue Streams
AppLovin Corporation generates revenue through two primary segments: Software Platform and Apps. As of September 30, 2024, the breakdown of their revenue is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Software Platform | $2,224,571 | 67% |
| Apps | $1,111,898 | 33% |
| Total Revenue | $3,336,469 | 100% |
Software Platform Revenue
AppLovin's Software Platform primarily earns revenue from fees paid by advertisers who utilize their technology to purchase ad inventory. Key components of this segment include:
- AppDiscovery: This service automates and optimizes user acquisition investments, accounting for the majority of Software Platform revenue.
- MAX: A tool that helps clients optimize their advertising inventory purchases, generating revenue based on a percentage of client spend.
- Adjust: A marketing analytics platform that charges annual subscription fees for its services.
- Wurl: A CTV platform that generates revenue based on usage.
For the three months ended September 30, 2024, Software Platform revenue was $835,186, a 66% increase from $504,452 in the same period of the prior year.
Apps Revenue
Apps revenue is derived from two main sources:
- In-App Purchases (IAP): Users pay for virtual goods that enhance their gaming experience. This accounted for 68% of total Apps revenue.
- In-App Advertising (IAA): Revenue from advertisers purchasing ad inventory on AppLovin's apps, which represented 32% of total Apps revenue.
For the nine months ended September 30, 2024, Apps revenue was $1,111,898, a 4% increase from $1,064,553 in the same period of the prior year.
Key Financial Metrics
As of September 30, 2024, the following financial metrics were reported:
| Metric | Value |
|---|---|
| Net Income | $980,572 |
| Operating Cash Flow | $1,398,008 |
| Cash and Cash Equivalents | $567,600 |
| Monthly Active Payers (MAPs) | 1,600,000 |
| Average Revenue Per Monthly Active Payer (ARPMAP) | $52 |
Cost Structure
The cost of revenue for the three months ended September 30, 2024, was $269,659, representing 23% of total revenue, compared to $265,049, or 31% of total revenue, in the same period of the prior year.
Sales and marketing expenses were $205,753, slightly down from $212,352, while research and development costs were $149,990.
Market Position and Growth Strategy
AppLovin's growth strategy involves expanding its portfolio of apps and enhancing user engagement. The company focuses on:
- Investing in user acquisition and marketing for existing and new apps.
- Leveraging data analytics to improve ad targeting and optimize revenue streams.
- Expanding partnerships with advertisers to grow their Software Platform client base.
AppLovin's ability to capture market share and enhance its revenue streams will depend on its continued innovation and responsiveness to market trends.
AppLovin Corporation (APP) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- AppLovin Corporation (APP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AppLovin Corporation (APP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AppLovin Corporation (APP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.