NASDAQ$APP

Applovin Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

AppLovin announced record quarterly revenue and Adjusted EBITDA with Software Platform growth.

AppLovin reported a strong Q4 2021, with revenue increasing by 56% year-over-year to $793 million and adjusted EBITDA growing by 60% to $221 million. The Software Platform revenue experienced substantial growth of 208% year-over-year, reaching $247 million. Net income improved to $31 million, a net margin of 4%.

  • Revenue grew 56% Y/Y to $793 million, with organic revenue increasing 25% Y/Y.
  • Software Platform revenue grew 208% Y/Y to $247 million, with organic growth of 173% Y/Y.
  • Software Platform Enterprise Clients (SPEC) grew 192% Y/Y to a record 461.
  • Adjusted EBITDA grew 60% Y/Y to $221 million and Adjusted EBITDA margin improved to 28%.

Headline financials

Total Revenue

$793M

Previous: $1.45B-45.3%
EPS (adj)

$0.08

Previous: -$0.08+200.0%
Adjusted EBITDA

$221M

No prior period
Adjusted EBITDA Margin

28.0%

No prior period
Capital Expenditures

$428K

Previous: $399K+7.3%
Free Cash Flow

$84.6M

Previous: $99.8M-15.2%
Net Income

$31M

Previous: -$18.8M+265.1%
Operating Income

$58.5M

Previous: -$4.96M+1280.4%
Gross Profit

$528M

Previous: $312M+69.4%
Cash & Equivalents

$1.52B

Previous: $317M+379.3%
Total Assets

$6.16B

Previous: $2.15B+186.1%
Stock-Based Comp

$41.3M

Previous: $43M-3.9%

Revenue & EPS history

AppLovin · Revenue · Quarterly

$793M

Q4 2021-45.3%vs Q4 2020
Beat estimate in 3 of 9 quarters(33%)
ActualEstimate

Forward guidance

AppLovin expects significant growth in 2022, particularly in the Software Platform, with total revenue projected to increase between 27-38%.

Tailwinds

  • Software Platform revenue is projected to be between $1.350 - $1.500 Billion, representing a growth of +100-123%.
  • Apps revenue is projected to be between $2.200 - $2.350 Billion, representing a growth of +4-11%.
  • Total revenue is projected to be between $3.550 - $3.850 Billion, representing a growth of +27-38%.
  • Adjusted EBITDA margin in 2022 is expected to be in the high-20s, up compared to 2021.
  • The company anticipates further growth in its Software Platform business due to the integration of MoPub in 2022.

Headwinds

  • The company has not provided forward-looking net income and net margin guidance for forward-looking non-GAAP Adjusted EBITDA guidance or a GAAP reconciliation.
  • Material changes to reconciling items could have a significant effect on future GAAP results.
  • The company's inability to forecast its business due to its limited operating history could affect future performance.
  • Fluctuations in the company's results of operations could affect future performance.
  • The competitive mobile app ecosystem could affect future performance.

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 Q4 2021

Historical avgQ4 2021

+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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