APP Q1 2024 Earnings

Call Details

• Call Title: Applovin Q1 2024 Earnings Call
• Date: May 8, 2024 at 9:00 PM UTC
• Management Team:
  • David Hsiao (Head of Investor Relations)
  • Adam Foroughi (Co-Founder, CEO, and Chairperson)
  • Matt Stumpf (CFO)

Call Summary

Financial Performance

• Company reported total revenue of $1.06 billion for Q1 2024.
• Adjusted EBITDA for Q1 2024 was $549 million, representing a 52% adjusted EBITDA margin on a non-GAAP basis.
• Free cash flow in Q1 2024 was $388 million, representing a 71% flow through from adjusted EBITDA.
• The software platform generated $678 million of revenue in Q1 2024 and delivered adjusted EBITDA of $492 million at a 73% margin.
• Software platform revenue grew from $355 million to $678 million year over year, an incremental $323 million where 84% or $273 million flowed through to adjusted EBITDA.
• The APPS portfolio maintained a 15% adjusted EBITDA margin and remained stable sequentially.
• Company cited a near 50% year-over-year revenue growth and a doubling of adjusted EBITDA compared to the prior year period.

Guidance

• Second quarter 2024 revenue guidance was provided at a range of $1.06 to $1.08 billion.
• Second quarter 2024 adjusted EBITDA guidance was provided at a range of $550 to $570 million.
• The implied adjusted EBITDA margin for Q2 2024 guidance is between 52% and 53%.
• No GAAP EPS or other GAAP forward guidance was provided on the call.
• Guidance assumes continued improvement and flow through from software platform performance and Axon-related gains.
• There were no changes called out on prior guidance for capital allocation or share repurchases within the Q2 guidance range.