FinancialAppLovin

AppLovin 4Q24 Financial Update

14 pages~40 min full read

Global

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Key insights

6 takeaways · ~2 min read

01
AppLovin achieved $4.7 billion in total 2024 revenue, a 43% increase over 2023, with net income rising to $1.6 billion at a 34% margin.See it on page 7
02
The advertising segment is the primary growth driver, generating $3.2 billion in annual revenue—a 75% increase—with a 76% Adjusted EBITDA margin.See it on page 2
03
Fourth-quarter advertising revenue reached $999 million, up 73% year-over-year, fueled by a 49% increase in net revenue per installation and 22% growth in total installations.See it on page 3
04
The company demonstrated strong liquidity with $2.1 billion in both net cash from operating activities and Free Cash Flow for the full year 2024.See it on page 9
05
The apps segment remained stable with $1.5 billion in annual revenue, representing 3% growth and a 19% Adjusted EBITDA margin.See it on page 12
06
AppLovin's 2024 net income of $1.6 billion significantly outperformed the 2023 figure of $357 million, which represented an 11% margin.See it on page 7

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Summary

AppLovin’s 4Q24 financial update highlights a period of significant growth and operational efficiency, driven primarily by the company’s core advertising segment. For the full year 2024, the company reported $4.7 billion in revenue, a 43% increase over 2023, and net income of $1.6 billion, representing a 34% net margin. This performance marks a substantial improvement from the previous year, where net income stood at $357 million with an 11% margin.

The advertising segment serves as the primary engine for this expansion, with annual revenue growing 75% to $3.2 billion and a segment Adjusted EBITDA margin of 76%. In the fourth quarter alone, advertising revenue reached $999 million, a 73% increase compared to the same period in 2023. This growth was supported by a 49% rise in net revenue per installation and a 22% increase in total installations. Conversely, the apps segment remained relatively stable, with annual revenue growing 3% to $1.5 billion and a 19% Adjusted EBITDA margin.

Financial health metrics indicate strong cash generation, with the company reporting $2.1 billion in net cash from operating activities and $2.1 billion in Free Cash Flow for the full year. The company’s strategic focus remains on its advertising platform, which now accounts for the vast majority of its revenue. These results are supported by internal data regarding Monthly Active Payers (MAPs) and Average Revenue Per Monthly Active Payer (ARPMAP), which the company uses to monitor engagement and monetization potential within its app portfolio. The report utilizes both GAAP and non-GAAP financial measures, such as Adjusted EBITDA and Free Cash Flow, to provide a comprehensive view of operational performance and liquidity.