Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

$24.99

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

AppLovin Corp., balance sheet: property, plant and equipment

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Finance lease right-of-use assets
Leasehold improvements
Software and licenses
Furniture and fixtures
Computer equipment
Property and equipment, gross
Accumulated depreciation
Property and equipment, net

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


The analysis of property, plant, and equipment data reveals several important trends over the four-year period. The gross value of property and equipment experienced substantial growth, increasing from approximately 103.3 million USD at the end of 2021 to around 255.3 million USD by the end of 2024. This represents more than a doubling of the asset base over the period.

Finance lease right-of-use assets were not recorded until 2023, when they first appeared at 216.5 million USD, followed by a moderate increase to 222.2 million USD in 2024. This addition significantly impacted the overall gross property and equipment figures in the last two years.

Leasehold improvements remained relatively stable throughout the period, fluctuating slightly between 17.4 million USD and 18.7 million USD without a clear upward or downward trend. Software and licenses showed more volatility, initially declining sharply from 3.2 million USD in 2021 to 156 thousand USD in 2022, then recovering significantly in the subsequent years, reaching 7.1 million USD by 2024.

Furniture and fixtures exhibited minor fluctuations, with values ranging between 3.6 million USD and 4.1 million USD but no significant trend upward or downward. Computer equipment figures showed marked variability: a strong increase from 77.7 million USD in 2021 to 106.2 million USD in 2022 was followed by a steep decline to approximately 3.3 million USD in both 2023 and 2024. This sharp reduction suggests substantial disposals, impairments, or reclassification.

Accumulated depreciation rose consistently over the period, increasing in magnitude from about 39.7 million USD in 2021 to 94.7 million USD in 2024, indicating ongoing asset usage and aging. The net property and equipment value, which accounts for accumulated depreciation, increased substantially from 63.6 million USD in 2021 to a peak of 173.3 million USD in 2023, then decreased to 160.5 million USD in 2024. Despite the decrease in the final year, the net asset base remains significantly higher than at the beginning of the period.

Key observations:
1. The gross property and equipment assets more than doubled over four years, driven largely by newly recognized finance lease right-of-use assets starting in 2023.
2. Computer equipment values showed extraordinary volatility, implying major disposals or changes in asset classification after 2022.
3. Depreciation increased steadily, reflecting aging assets and consistent utilization.
4. The net property and equipment balance expanded significantly, indicating continued investment and asset growth despite the observed volatility in certain categories.
5. Software and licenses rebounded strongly after a steep decline, possibly indicating renewed investment in intangible technology assets.

Asset Age Ratios (Summary)

AppLovin Corp., asset age ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Average age ratio
Estimated total useful life (years)
Estimated age, time elapsed since purchase (years)
Estimated remaining life (years)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Average Age Ratio
The average age ratio remained relatively stable between 2021 and 2022, with values close to 38.4% and 38.35%, respectively. However, in 2023, there was a notable decline to 29.35%, indicating a younger overall asset base during that year. This ratio then increased again to 37.11% in 2024, suggesting a modest aging of the asset pool compared to the previous year.
Estimated Total Useful Life
The estimated total useful life of the property, plant, and equipment showed a significant increase starting in 2023, rising from 4 years in both 2021 and 2022 to 9 years for the years 2023 and 2024. This change implies either an extension in asset lifespan assumptions or the addition of new assets with longer expected useful lives.
Estimated Age (Time Elapsed Since Purchase)
The estimated age of the assets increased gradually, from 2 years in 2021 and 2022 to 3 years in 2023 and 2024. This reflects a natural progression of time elapsed since asset acquisition and suggests relatively stable asset turnover or replacement activities during the period.
Estimated Remaining Life
The estimated remaining life of the assets demonstrated considerable variation, starting at 2 years in 2021, increasing to 3 years in 2022, then rising sharply to 7 years in 2023 before reducing to 5 years in 2024. This pattern aligns with the extension of total useful life estimates and indicates that while the company may have invested in longer-lived assets by 2023, some reduction in remaining life was noted in 2024, possibly due to asset wear or revaluation.

Average Age

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Accumulated depreciation
Property and equipment, gross
Asset Age Ratio
Average age1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2024 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × ÷ =


The analysis of the property, plant, and equipment (PPE) financial metrics reveals several key trends over the four-year period ending December 31, 2024.

Accumulated Depreciation
There is a consistent upward trend in accumulated depreciation, increasing from $39,659 thousand in 2021 to $94,741 thousand in 2024. This progression indicates ongoing depreciation expense accumulation, reflecting the consumption of PPE assets' value over time. The increase of approximately 2.39 times over the period suggests either a rising base of depreciable assets or accelerated depreciation policies.
Property and Equipment, Gross
The gross value of property and equipment similarly exhibits significant growth, rising from $103,267 thousand in 2021 to $255,271 thousand in 2024. Particularly notable is the sharp increase between 2022 and 2023, where the value nearly doubles from $127,401 thousand to $245,337 thousand. This trend suggests substantial capital investment in PPE assets, potentially indicating expansion or upgrading of physical resources.
Average Age Ratio (%)
The average age ratio experiences fluctuation, moving from 38.4% in 2021 down to a low of 29.35% in 2023, before rising again to 37.11% in 2024. The initial decline implies that the PPE asset base was relatively younger in 2023, possibly due to recent acquisitions or replacements of equipment. The subsequent increase in 2024 might indicate a slowing pace of new investments or aging of the existing asset base without equivalent additions.

Overall, the asset base grows substantially while depreciation also rises, suggesting ongoing asset utilization and renewal. The volatility in the average age ratio points to varying investment timing and lifecycle stages of assets. These patterns collectively imply active management of PPE, with significant investment phases and subsequent periods of asset aging adjustments.


Estimated Total Useful Life

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Property and equipment, gross
Depreciation expenses
Asset Age Ratio (Years)
Estimated total useful life1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2024 Calculations

1 Estimated total useful life = Property and equipment, gross ÷ Depreciation expenses
= ÷ =


The financial data for property, plant, and equipment over the four-year period reveals several notable trends related to asset growth, depreciation expenses, and estimated asset lifespan.

Property and Equipment, Gross
The gross value steadily increased each year, starting at approximately $103.3 million at the end of 2021 and rising to about $255.3 million by the end of 2024. This sharp growth, especially the substantial jump between 2022 and 2023 where the value nearly doubled, indicates significant investments or acquisitions of property and equipment during this time.
Depreciation Expenses
Depreciation expenses showed less consistent movement. Starting at $25.6 million in 2021, expenses rose to $29.3 million in 2022, then decreased to $26.4 million in 2023 before increasing again to $29.4 million in 2024. The fluctuations in depreciation expenses may reflect changes in asset composition, depreciation methods, or adjustments related to changes in estimated useful life.
Estimated Total Useful Life
This metric remained steady at 4 years for 2021 and 2022 but increased notably to 9 years in 2023 and 2024. The extension in estimated useful life suggests that the company reassessed the longevity of its assets, possibly due to acquiring assets with longer operational lives or a revision in depreciation policies. This change likely impacts the calculation of depreciation expenses, contributing to the observed variations.

Overall, the data illustrates a phase of strong capital investment accompanied by changes in asset depreciation assumptions. The shift towards a longer useful life estimation likely reflects strategic asset management considerations that affect expense recognition and asset valuation.


Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Accumulated depreciation
Depreciation expenses
Asset Age Ratio (Years)
Time elapsed since purchase1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2024 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expenses
= ÷ =


Accumulated Depreciation
The accumulated depreciation increased consistently over the observed periods. Starting from approximately 39.7 million US dollars at the end of 2021, it rose to around 48.9 million in 2022, then further to 72.0 million in 2023, and reached roughly 94.7 million by the end of 2024. This upward trend indicates ongoing depreciation of the property, plant, and equipment assets, reflecting either continuous asset aging or additions that are being depreciated.
Depreciation Expenses
Depreciation expenses fluctuated slightly over the four years. The expense increased from 25.6 million US dollars in 2021 to 29.3 million in 2022, then decreased to 26.4 million in 2023, and rose again to 29.4 million in 2024. These variations suggest changes in depreciation charges, possibly due to asset mix adjustments, acquisitions, disposals, or changes in depreciation methods or estimates.
Time Elapsed Since Purchase
The time elapsed since purchase remained stable at 2 years during 2021 and 2022 but increased to 3 years in both 2023 and 2024. This indicates that the assets held are aging without significant replacement or turnover in those years, except for aging reflecting the passage of time. This aligns with the steady increase in accumulated depreciation.
Overall Analysis
The trends suggest a consistent aging of the property, plant, and equipment portfolio, evidenced by a continuous rise in accumulated depreciation and stable depreciation expenses with minor fluctuations. The modest variations in annual depreciation expenses could be attributed to asset management activities or accounting estimate changes. The stable increase in asset age without reduction through new purchases or disposals indicates a potentially aging asset base, which may impact future capital expenditure planning.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Property and equipment, net
Depreciation expenses
Asset Age Ratio (Years)
Estimated remaining life1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2024 Calculations

1 Estimated remaining life = Property and equipment, net ÷ Depreciation expenses
= ÷ =


The analysis of the annual property, plant, and equipment (PP&E) data reveals several notable trends over the four-year period ending December 31, 2024.

Net Property and Equipment
The net value of property and equipment demonstrates a significant upward trend from 63,608 thousand US dollars in 2021 to 173,331 thousand US dollars in 2023. This represents a nearly threefold increase over two years, indicating substantial capital investment or asset acquisitions during this timeframe. However, in 2024, there is a slight decline to 160,530 thousand US dollars, which may suggest asset disposals, impairments, or revaluation adjustments.
Depreciation Expenses
Depreciation expenses show some fluctuation across the years. The expense increased from 25,600 thousand US dollars in 2021 to 29,300 thousand US dollars in 2022, indicating higher consumption of asset value or additions to depreciable assets. In 2023, depreciation expenses decreased to 26,400 thousand US dollars despite the significant increase in net assets that year. This could point to changes in depreciation methods, asset composition, or capitalization policies. In 2024, depreciation expenses rose again to 29,400 thousand US dollars, aligning more closely with the earlier higher levels.
Estimated Remaining Life
The estimated remaining useful life of the property's assets shows a notable increase from 2 years in 2021 to 7 years in 2023, before declining slightly to 5 years in 2024. The initial low remaining life might reflect an older asset base or previously higher depreciation rates, whereas the increase suggests acquisition of newer or longer-lived assets, better asset management, or re-assessments extending asset life. The slight decrease in 2024 may indicate aging of the asset base or revision in useful life estimates following asset portfolio changes.

In summary, the PP&E data illustrates a phase of significant asset growth and investment, followed by slight consolidation or adjustment in the most recent year. The fluctuations in depreciation alongside changes in estimated remaining life suggest strategic asset management and potential changes in asset mix or accounting assumptions. The overall pattern reflects an evolving asset base with implications for future capital expenditure planning and depreciation budgeting.