Applovin (APP) 53rd Annual Nasdaq Investor Conference summary

Mobile gaming growth and technology innovation

• 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 continuous performance gains.

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

• Stacked technology improvements and a robust pipeline of experiments support sustained 20%-30% growth.

Self-serve platform and e-commerce expansion

• Success for the new self-serve platform is measured by advertiser performance, specifically ROAS and scalability compared to other channels.

• Pilot groups and referral programs have shown positive results, with advertisers able to achieve their return goals.

• Prospecting campaigns enable brands to focus on new customer acquisition, leveraging seamless data integration with platforms like Shopify.

• The prospecting tool has delivered strong results, increasing new customer rates and unlocking greater spend potential from large brands.

• The opportunity exists to acquire hundreds of thousands of new customers as the platform scales.

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 creation of static ad assets at low cost.

• Video generation is more complex and costly, but internal tools can already produce ads that outperform current customer assets.

• Customers will soon receive quotas for video creation, and onboarding will be streamlined with automatic ad generation from their websites.

• These tools are expected to drive significant uplift for e-commerce and small business advertisers.