Applovin (APP) Q4 2024 earnings summary

Executive summary

• Achieved a major milestone in Q4 2024, expanding beyond gaming into e-commerce and other advertising categories, validating platform performance across diverse verticals.

• Achieved Q4 2024 revenue of $1.37B, up 44% year-over-year; full year revenue reached $4.71B, up 43%.

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

• Signed an exclusive term sheet to divest the apps business, transitioning to a pure advertising platform focused on automation and operational excellence.

• Prioritizing development of self-serve and automated tools to scale onboarding of new advertisers globally.

Financial highlights

• Q4 2024 revenue rose 44% year-over-year to $1.37 billion; Adjusted EBITDA up 78% to $848 million, with a 62% margin.

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

• Repurchased or withheld 25.7 million shares in 2024 for $2.1 billion, matching free cash flow.

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

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

Outlook and guidance

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

• Q1 2025 Adjusted EBITDA guidance: $805M–$885M (margin 63%–64%).

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