Applovin (APP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.37 billion, up 44% year-over-year, with the platform expanding beyond gaming into e-commerce and other verticals.

• Net income for Q4 was $599 million, a 248% increase year-over-year; full year net income was $1.58 billion, up 343%.

• Adjusted EBITDA for Q4 was $848 million (62% margin), up 78% year-over-year; full year Adjusted EBITDA was $2.72 billion (58% margin), up 81%.

• Announced the signing of an exclusive term sheet to divest the apps business, focusing on becoming a pure advertising platform.

• Emphasis on operational excellence, with a focus on Adjusted EBITDA per employee as a key metric.

Financial highlights

• Q4 Advertising revenue grew 73% year-over-year to $999 million; full year Advertising revenue was $3.22 billion, up 75%.

• Apps revenue for Q4 was $373 million, flat year-over-year; full year Apps revenue was $1.49 billion, up 3%.

• Free Cash Flow for Q4 was $695 million, up 105% year-over-year; full year Free Cash Flow was $2.07 billion.

• Net cash from operating activities was $701 million in Q4 and $2.1 billion for the year.

• Q4 net margin was 44%, up from 18% in Q4 2023; full year net margin was 34%, up from 11%.

Outlook and guidance

• Q1 2025 revenue guidance: $1.36–$1.39 billion; Advertising revenue $1.03–$1.05 billion; Apps revenue $325–$335 million.

• Q1 2025 Adjusted EBITDA guidance: $805–$885 million, margin 63%–64%.

• E-commerce is expected to be a material revenue contributor in 2025, though timing and magnitude remain unpredictable.