Applovin (APP) 53rd Annual Nasdaq Investor Conference summary

Mobile gaming growth and technology

• Mobile gaming supply is growing at a double-digit rate, expanding market opportunities.

• Ongoing improvements in the Axon advertising model, driven by reinforcement learning and data, fuel demand-side growth.

• Directed model enhancements, with at least one major update per year, contribute at least 10% growth annually.

• Stacked enhancements and a long list of experiments support robust 20%-30% growth potential.

Self-serve platform and e-commerce expansion

• Success for the self-serve platform is measured by advertiser performance, not customer count.

• E-commerce advertisers in pilot and referral cohorts are achieving strong return on ad spend at scale.

• Prospecting campaigns enable brands to target new customers, increasing new customer acquisition rates significantly.

• The platform’s ability to maximize spend from large brands is enhanced by these prospecting tools.

AI-based creative and automation

• Generative AI tools are being developed to help non-gaming advertisers create optimized creatives for the platform.

• Image generation models are ready for rollout, enabling bulk static ad creation at low cost.

• Video generation is more complex and costly, but internal tools can already produce ads better than current alternatives.

• Advertisers will receive quotas for video creation to manage costs, and onboarding will be streamlined with auto-generated ads.