Q2 2024 Applovin Corp Earnings Call Transcript
Key Points
- AppLovin Corp (APP) reported a strong quarter with total revenue reaching $1.08 billion and EBITDA of $601 million.
- The software business saw a 5% revenue growth quarter over quarter, indicating continuous improvement in their models.
- The company achieved an impressive 81% flow-through to adjusted EBITDA, translating to $446 million in free cash flow.
- AppLovin Corp (APP) launched its first web advertising campaigns for e-commerce shops, which showed promising early results.
- The company has a strong focus on expanding into new verticals beyond gaming, which could unlock significant growth opportunities.
- The mobile gaming market is experiencing slower growth, which could impact AppLovin Corp (APP)'s overall performance.
- The current system can only find a limited number of users who meet advertisers' revenue goals, limiting potential growth.
- There was an 11% quarter-over-quarter decrease in total app segment costs, indicating potential challenges in user acquisition.
- The future margin profile for the app segment is expected to normalize to approximately 15%, which is lower than current levels.
- The company is still in the pilot phase for its new web advertising campaigns, meaning it may take time before these initiatives contribute significantly to revenue.
(Operator Instructions)
And the moderate or take us through Q&A. Welcome and thank you for joining us. We had another strong quarter in Q2. Our software business had 5% revenue growth quarter over copper because our models continue to improve. On Q1, we had a big step-up in growth.
So continuing that trend to continue to grow quarter over quarter is a really promising side, as we've stated in previous earnings calls and we keep growing in the software business, the flow through to EBITDA and cash is very high and our business margins and cash conversion will continue to improve.
We've also consistently said that the slower growth market we're in mobile gaming doesn't and our operation continue to grow our software business. We've noticed that at times this concept of a little bit more explaining for our shareholders and prospective investors. So I wanted to take the time to do that here.
Our platform is entirely performance-based stock awards, giving advertisers
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
