AppLovin Crushes Expectations: Q4 Earnings Soar

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AppLovin (NASDAQ: APP) has released its financial results for Q4 and the full year 2024, demonstrating significant growth and exceeding analyst expectations. The company’s success is attributed to its robust business model and strategic initiatives.

Financial Highlights

• Revenue: For Q4 2024, total revenue reached $1.37 billion, a 44% increase year-over-year. Full-year revenue hit $4.71 billion, up 43% from 2023. This beat analyst estimates of $1.26 billion.
• Earnings Per Share (EPS): AppLovin reported Q4 earnings of $1.73 per share, surpassing analyst predictions of $1.25 per share.
• Net Income: The company’s net income surged 248% to $599.2 million in Q4 and 343% to $1.58 billion for the full year.
• Advertising Revenue: Advertising revenue grew 73% to $999.5 million in Q4 and 75% for the full year.
• Apps Revenue: Apps revenue saw a slight decline of 1% in Q4. For the full year, apps revenue increased by 3%.
• Adjusted EBITDA: Adjusted EBITDA increased 78% to $848 million in Q4, with a margin of 62%.
• Free Cash Flow: Free cash flow was $695 million for Q4 and $2.1 billion for the full year.
• Cash and Equivalents: AppLovin ended the quarter with $741.4 million in cash and cash equivalents.

Q1 2025 Guidance

AppLovin anticipates revenue between $1.36 billion and $1.39 billion for the first quarter of 2025, exceeding estimates of $1.32 billion. The company expects adjusted EBITDA to be in the range of $855 million to $885 million.

Market Reaction

Following the release of the Q4 results, AppLovin shares jumped 19.6% in after-hours trading, reaching $454.82. AppLovin shares have risen 17% since the beginning of the year.

Company Perspective

AppLovin emphasized the power of its AI-driven advertising model in a letter to shareholders:

“Over the last few years, our team has achieved extraordinary things. We’ve built an advertising model as powerful as any advertising AI model in the world, delivering measurable success for our partners… Early adopters in gaming and direct-to-consumer commerce have already seen the impact of our technology, and our mission is clear: to onboard every business that wants to drive measurable growth.”

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