Applovin (APP) investor relations material

Business evolution and strategic priorities

• Focused on helping advertisers find and engage new customers, leveraging advanced neural net technology for campaign optimization and revenue-based pricing.

• Achieved over $11 billion in gross ad spend in Q1, with hundreds of e-commerce and gaming advertisers, positioning as the second-largest platform after Meta.

• Plans to expand beyond gaming into broader markets, aiming to help all types of businesses and drive economic growth.

• Intends to launch its high-value recommendation model more broadly, unlocking new opportunities for global advertisers.

Growth drivers and technology

• Targets long-term annual growth of 20–30%, driven by reinforcement learning and model enhancements.

• Expansion into e-commerce and new verticals is expected to diversify demand and improve the recommendation engine.

• The platform’s growth is catalyzing the entire mobile gaming ad market, with competitors also growing rapidly.

• Economic value is created by acting as the lead market maker, benefiting from both direct and indirect growth in the ecosystem.

Capital allocation and profitability

• Prioritizes organic growth investments, especially in data centers, GPUs, and minimal headcount expansion.

• Nearly all free cash flow over the past three years has been used for share buybacks, with plans to continue but at a slightly reduced pace.

• Maintains high EBITDA margins (80–85%) and expects new costs from AI and marketing to be offset by revenue growth.