AppLovin achieves $1.2 billion in Q3 revenue with 39% yearly growth

AppLovin, a major player in mobile app technology, reported an impressive Q3 2024 revenue of $1.2 billion, reflecting a substantial 39% increase year-over-year. This leap in growth stems largely from their software platform success and strategic cost management across business segments, signaling the company’s focus on long-term value and profitability.

According to AppLovin’s recent financial disclosures, the company posted a net income of $434 million, a growth rate of 300% over the previous year, with a net margin of 36%. Their software platform alone brought in $835 million, achieving a 66% increase from the prior year. The Adjusted EBITDA for the platform rose to $653 million, marking a notable 79% increase and maintaining a high margin of 78%. Meanwhile, revenue from the Apps segment experienced a modest 1% growth, totaling $363 million and producing an EBITDA of $68 million.

The company’s cash flow also saw significant advancements, with operating cash flow at $551 million (an increase of 177%) and free cash flow reaching $545 million, up 182% from last year. These results reflect AppLovin’s effective cost management, positioning the business for continued financial stability.

In line with its strategic growth and capital allocation plans, AppLovin recently repurchased and retired five million shares of its Class A stock, costing around $437 million. This move was part of a broader share buyback initiative, with the board authorizing an additional $2 billion for repurchases, raising the remaining authorized amount to $2.3 billion. Funded by free cash flow, these repurchases underscore the company’s commitment to maximizing shareholder value.

AppLovin’s balance sheet remains strong, with $568 million in cash and cash equivalents and a total of 335 million shares outstanding as of the end of Q3 2024. The company aims to maintain a robust capital structure, focusing on sufficient liquidity and a net debt leverage ratio below 2.0x to ensure operational flexibility.

Looking ahead, AppLovin plans to further strengthen its capital structure and pursue investments in top talent and technology. The company is committed to nurturing organic growth and expanding its capabilities to benefit from the ongoing evolution of its software platform, particularly through enhancements in its AXON models. The AXON platform has shown considerable improvements thanks to engineering advancements, empowering advertising partners to expand their spending and reach a larger audience.

AppLovin’s CEO expressed optimism about the company’s trajectory, emphasizing their role as a catalyst for industry growth. With an eye on strategic expansion and value creation, AppLovin aims to build on this momentum as it pursues sustained success in the mobile technology sector.