NASDAQ$APP

Applovin Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

AppLovin's Q3 2023 financial performance marked a record, driven by the strong performance of AXON 2.0 and the AppDiscovery platform.

AppLovin announced record third quarter financial results, exceeding guidance for revenue, Adjusted EBITDA, and margin, primarily driven by the performance of AXON 2.0. Total revenue grew 21% year-over-year to $864 million, and Adjusted EBITDA grew 63% year-over-year to $419 million.

  • Total revenue grew 21% year-over-year to $864 million, with net income improving to $109 million, yielding a net margin of 13%.
  • Adjusted EBITDA increased by 63% year-over-year to $419 million, resulting in an improved Adjusted EBITDA margin of 49%.
  • Net cash from operating activities totaled $199 million, while Free Cash Flow reached $194 million.
  • Software Platform revenue was $504 million, a 65% year-over-year increase, with Adjusted EBITDA at $364 million, reflecting a 91% year-over-year growth and an Adjusted EBITDA margin of 72%.

Headline financials

Total Revenue

$864M

Previous: $713M+21.2%
EPS (adj)

$0.30

Previous: $0.06+400.0%
Adjusted EBITDA

$419M

No prior period
Adjusted EBITDA Margin

49.0%

No prior period
Capital Expenditures

-$4M

Previous: -$621K-544.4%
Free Cash Flow

$105M

Previous: $23.2M+352.0%
Net Income

$109M

Previous: $23.8M+357.0%
Operating Income

$186M

Previous: $49.3M+278.2%
Gross Profit

$599M

Previous: $412M+45.4%
Cash & Equivalents

$332M

Previous: $944M-64.8%
Total Assets

$5.01B

Previous: $5.81B-13.8%
R&D Expense

$159M

No prior period
Stock-Based Comp

$111M

Previous: $42.1M+163.0%

Revenue & EPS history

AppLovin · Revenue · Quarterly

$864M

Q3 2023+21.2%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

No specific forward guidance was provided in the press release.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+9.6%

Avg return

Earnings day

+13.8%

Avg return

5 days after

+19.8%

Avg return

30 days after

62%

16 / 26 earnings

Positive

+49.2%

Q3 2024

Best reaction

-19.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+4.3%+19.0%
Q4 2025-19.7%-17.6%+0.4%
Q3 2025-3.5%-3.6%+12.1%
Q2 2025+12.0%+19.6%+25.5%
Q1 2025+11.7%+22.0%+37.7%
Q4 2024+24.0%+30.4%-23.0%
Q3 2024+49.2%+73.4%+143.1%
Q2 2024+11.2%+8.3%+22.6%
Q1 2024+9.9%+12.0%+6.3%
Q4 2023+27.6%+30.6%+37.7%
Q3 2023-3.0%+1.3%-8.6%
Q2 2023+23.8%+32.3%+40.2%
Q1 2023+26.9%+30.6%+30.8%
Q4 2022+25.4%+23.4%-4.2%
Q3 2022+7.2%+1.2%-31.8%
Q2 2022-4.3%-6.8%-23.0%
Q1 2022+26.7%+28.9%+24.6%
Q4 2019-5.1%+7.7%+10.4%
Q4 2021-15.1%-15.5%-27.9%
Q3 2020-10.5%-8.2%-21.1%
Q3 2021+10.9%-0.8%-12.5%
Q2 2020-1.9%+12.0%+35.8%
Q2 2021-0.4%-2.3%+35.3%
Q1 2020+25.2%+29.6%+65.3%
Q4 2020+25.2%+29.6%+65.3%
Q1 2021-6.7%+16.8%+54.2%
Q2 2015
Q1 2015

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