Q3 2024 Applovin Corp Earnings Call Transcript
Key Points
- AppLovin Corp (APP) reported a 39% increase in revenue and a 72% increase in adjusted EBITDA from the same period last year, showcasing strong financial performance.
- The company achieved a 60% adjusted EBITDA margin, indicating efficient operations and profitability.
- AppLovin Corp (APP) generated $545 million in free cash flow, marking a 182% year-over-year increase, highlighting strong cash generation capabilities.
- The advancements in AXON technology contributed to significant growth, with the software platform generating $835 million in revenue and $653 million in adjusted EBITDA.
- The company is exploring new verticals, such as e-commerce, with early data from the pilot phase exceeding expectations, indicating potential for future growth.
- The e-commerce pilot is still in its early stages and has not yet made a material financial impact, indicating that it may take time to contribute significantly to revenue.
- AppLovin Corp (APP) anticipates a slight reduction in software flow-through next quarter due to PSU-related vesting costs and increased data center capacity.
- The company is shifting to an annual shareholder letter, which may reduce the frequency of detailed updates for investors.
- Despite strong performance, the company faces challenges in expanding brand awareness in the e-commerce sector, which could slow the ramp-up of this new vertical.
- There is uncertainty regarding the timing and impact of future AI advancements, which are crucial for sustaining growth in the competitive mobile gaming and advertising markets.
Welcome to Applovin's earnings call for the third quarter and it's September 30, 2024. I'm David Hsiao, Head of Investor Relations.
Joining me today to discuss our results are Adam Foroughi, our Co-Founder, CEO, and Chairperson, and Matt Stumpf. Our CFO. Please note, our SEC filings to date as well as our shareholder letter and press release discussing our third quarter are available at investors.applovin.com.
During today's call, we will be making forward-looking statements regarding our products and services, market expectations, our share repurchase program including future amounts available for repurchase, the expected future financial performance of the company, and other future events. These statements are based on our current assumptions and beliefs, and we assume no obligation to update them except as required by law. Our actual results may differ materially from the results predicted.
We encourage you to review the risk factors in our most recently filed form 10-Q for the second quarter ended June 30, 2024.
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