3Q24 Shareholder Letter

AppLovin reported a robust third‑quarter 2024 performance, with revenue rising to $1.20 billion—up 39% YoY—and net income reaching $434 million, a 300% increase and a 36% margin. Adjusted EBITDA climbed to $722 million, a 72% jump and a 60% margin. Operating cash flow surged to $551 million, while free cash flow hit $545 million, both up more than 170% YoY. Cash and equivalents stood at $568 million with 335 million shares outstanding.

The Software Platform segment dominated growth, generating $835 million in revenue (+66%) and $653 million in Adjusted EBITDA (+79%), achieving a 78% margin. The Apps segment remained stable, with revenue at $363 million (+1%) and Adjusted EBITDA of $68 million (19% margin). Share repurchases totaled 5.0 million shares at a cost of $437 million, and the board increased repurchase authorization by $2.0 billion, aiming to fund future buybacks from free cash flow.

Guidance for Q4 2024 projects total revenue of $1.24–$1.26 billion and Adjusted EBITDA of $740–$760 million, maintaining a 60% margin. The company emphasizes continued investment in talent and technology to drive organic growth, disciplined capital allocation through share buybacks and equity grants, and maintaining a net debt leverage ratio below 2.0×.

Financials are presented in US GAAP terms, with non‑GAAP Adjusted EBITDA and Free Cash Flow defined for investor clarity. The letter notes forward‑looking statements, risks, and the intent to rename the Software Platform segment to “Advertising” in future filings.