AppLovin files for an estimated $2 billion IPO

Mobile app technology company AppLovin announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed IPO of its common stock. 

The company has applied to list its common stock on the Nasdaq Stock Market under the symbol “APP” to raise up to $100 million in its IPO. It is estimated that the company could raise up to $2 billion. 

According to its S-1 filing, AppLovin’s 2020 revenue reached $1.45 billion, up 46% year-over-year. Back in 2020, AppLovin announced the acquisition of Machine Zone and at the beginning of February it announced the acquisition of mobile measurement company Adjust. 

AppLovin co-founder and CEO Adam Foroughi is the biggest shareholder after KKR.

UPDATE (08.04.2021) – Applovin with existing shareholder KKR seek up to $2.1B in its U.S. IPO

“Since the beginning of 2018, we have invested over $1 billion across 15 strategic acquisitions and partnerships with app studios, games, and technologies. In the case of new apps added to our portfolio, we are able to deploy our Software and expertise to accelerate revenue growth, enabling us to generate strong returns on investment. We estimate that a year after joining our portfolio, Apps we acquired in 2018 and 2019 have increased their quarterly revenue over 100% on average. Strategic acquisitions and partnerships will continue to be a part of our growth strategy going forward. For example, in February 2021, we entered into a share purchase agreement to acquire Adjust GmbH (Adjust), a leading mobile app attribution, measurement, and analytics company in Germany.” the company said in the SEC filing. 

Also read: Vungle acquires mobile gaming analytics company GameRefinery

AppLovin revenue has grown at a 76% CAGR from 2016 to 2020. The company generated a net loss of $125.9 million in 2020. It also reported an Adjusted EBITDA of $255.6 million, $301.4 million, and $407.5 million in 2018, 2019, and 2020, respectively.

Last year, 49% of AppLovin revenue came from businesses using its software and 51% from consumers making in-app purchases.

AppLovin filed confidentially on December 7, 2020. Morgan Stanley, J.P. Morgan, KKR, BofA Securities, Citi and Goldman Sachs are the joint bookrunners on the deal.