APP Q2 2021 Earnings

Call Details

• Call Title: Applovin Q2 2021 Earnings Call
• Date: August 11, 2021 at 9:00 PM UTC
• Management Team:
  • Ryan Gee (Head of Investor Relations and Strategic Finance)
  • Adam Foroughi (Co-founder, CEO, and Chairperson)
  • Harold Chen (President and Chief Financial Officer)

Call Summary

Financial Performance

• Company reported record adjusted EBITDA of $184M in Q2 2021, which grew more than 200% year-over-year and over 40% quarter-over-quarter.
• Adjusted EBITDA margin expanded to 27% in the quarter.
• Software platform revenue more than tripled year-over-year in Q2 2021.
• Total software transaction value (TSTV) grew over 4x year-over-year to an annual run rate of approximately $900M.
• Apps business has an annualized revenue run rate of more than $2.0B and grew organically 80% year-over-year.
• Software represented approximately 22% of revenue in the quarter versus 14% for the full year 2020.
• Company reported a rule of measure of 150% from combined Q2 revenue growth and EBITDA margin.
• Net dollar-based retention from existing specs was reported at 279%.

Guidance

• Full-year 2021 organic revenue guidance remains unchanged at $2.65B to $2.7B.
• Full-year 2021 adjusted EBITDA guidance remains unchanged at $680M to $700M.
• Guidance provided at the start of the year was reconfirmed and management stated it will generally be updated annually unless material divergence occurs.
• The company stated that the current guidance already includes Adjust and the two earlier acquisitions but does not materially bake in cross-sell upside from Adjust.
• Executives stated confidence in delivering against the previously provided organic outlook for 2021.
• Company highlighted several opportunities for added growth beyond guidance driven by software momentum and apps pipeline.