In This Article:
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Total Revenue: $1.37 billion, a 44% increase year-over-year.
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Adjusted EBITDA: $848 million, a 78% increase, with a 62% margin.
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Free Cash Flow: $695 million, up 105% year-over-year.
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Cash and Cash Equivalents: $741 million at the end of Q4.
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Advertising Revenue: $999 million with $777 million in adjusted EBITDA, achieving a 78% margin.
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Apps Revenue: $373 million, a 1% decrease from last year, with $71 million in adjusted EBITDA at a 19% margin.
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Annual Revenue: $4.7 billion, a 43% increase from last year.
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Annual Adjusted EBITDA: $2.72 billion, an 81% increase, with a 58% margin.
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Annual Free Cash Flow: $2.1 billion, representing a 76% flow-through from adjusted EBITDA.
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Share Repurchase: 25.7 million shares repurchased for $2.1 billion at an average price of $83 per share.
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Q1 2025 Advertising Revenue Guidance: $1.030 billion to $1.050 billion, with adjusted EBITDA between $805 million and $825 million.
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Q1 2025 Apps Revenue Guidance: $325 million to $335 million, with adjusted EBITDA between $50 million and $60 million.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AppLovin Corp (NASDAQ:APP) achieved a 44% increase in total revenue year-over-year, reaching $1.37 billion in Q4 2024.
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Adjusted EBITDA increased by 78% to $848 million, with a strong margin of 62%.
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The company generated $695 million in free cash flow, marking a 105% increase year-over-year.
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AppLovin Corp (NASDAQ:APP) is expanding its advertising platform beyond gaming, successfully attracting a broader set of advertisers, including e-commerce.
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The company is transitioning to a pure advertising platform, focusing on productivity, automation, and building lean, high-impact teams, with a notable $3 million in run rate adjusted EBITDA per employee in the advertising business.
Negative Points
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AppLovin Corp (NASDAQ:APP) is still developing its systems and lacks full self-service capabilities, which limits its ability to handle growth at scale.
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The company experienced a step function increase in data center costs, impacting the flow-through from revenue to adjusted EBITDA.
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There is uncertainty regarding the timing and extent of growth from the e-commerce segment, making it difficult to predict its material contribution in 2025.
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The company is in the process of divesting its Apps business, which could lead to a decrease in revenue from this segment.
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AppLovin Corp (NASDAQ:APP) faces challenges in expanding its platform to include non-gaming app advertisers and websites, requiring further development and integration efforts.