Stock Analysis on Net
Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

Common-Size Income Statement 

AppLovin Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Revenue 100.00 100.00 100.00 100.00
Cost of revenue -24.78 -32.26 -44.59 -35.38
Gross profit 75.22% 67.74% 55.41% 64.62%
Sales and marketing -18.03 -25.30 -32.64 -40.45
Research and development -13.56 -18.04 -18.02 -13.12
General and administrative -3.85 -4.65 -6.45 -5.68
Income (loss) from operations 39.78% 19.74% -1.70% 5.37%
Interest expense and loss on settlement of debt -6.76 -8.40 -6.10 -3.69
Other income (expense), net 0.44 0.24 0.51 -0.02
Other expense, net -6.32% -8.15% -5.59% -3.71%
Income (loss) before income taxes 33.47% 11.59% -7.28% 1.66%
(Provision for) benefit from income taxes 0.08 -0.73 0.43 -0.39
Net income (loss) 33.55% 10.87% -6.85% 1.27%
Net loss attributable to noncontrolling interest 0.00 0.00 0.01 0.00
Net income (loss) attributable to AppLovin 33.55% 10.87% -6.84% 1.27%

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).

Revenue
Revenue remains consistent as the base reference at 100% across all years, enabling relative comparison of expense and profit items as a percentage of revenue.
Cost of Revenue
The cost of revenue decreased from 44.59% in 2022 to 24.78% in 2024, after peaking in 2022. This indicates a significant improvement in cost efficiency or pricing power over the period, contributing positively to profitability.
Gross Profit
Gross profit showed a clear upward trend, increasing from 55.41% in 2022 to 75.22% in 2024. This improvement aligns inversely with the decline in cost of revenue, reflecting enhanced operational leverage or margin expansion.
Sales and Marketing
Sales and marketing expenses steadily declined as a percentage of revenue, from 40.45% in 2021 to 18.03% in 2024, indicating disciplined spending or increased marketing efficiency.
Research and Development
Research and development costs remained relatively stable, around 18% during 2022 and 2023, but decreased to 13.56% in 2024, suggesting either cost control measures or a shift in strategic focus.
General and Administrative
General and administrative expenses moderately fell from 6.45% in 2022 to 3.85% in 2024, reflecting possible efficiency gains in corporate overhead or administrative functions.
Income (Loss) from Operations
The operating income percentage improved notably, shifting from a loss of 1.7% in 2022 to a robust operating income of 39.78% in 2024, highlighting strong operational performance improvements.
Interest Expense and Loss on Settlement of Debt
Interest expenses as a percentage of revenue increased from 3.69% in 2021 to a peak of 8.4% in 2023, before decreasing slightly to 6.76% in 2024, reflecting changes in debt servicing costs and possibly debt restructuring.
Other Income (Expense), Net
Other income/(expense) remained near neutral with minor positive fluctuations, indicating limited impact on overall profitability from non-operational items.
Other Expense, Net
Other expenses increased to 8.15% in 2023 but decreased again to 6.32% in 2024, showing volatility in non-operating costs or losses.
Income (Loss) Before Income Taxes
The pre-tax income margin recovered from a loss of 7.28% in 2022 to a substantial 33.47% in 2024, driven mainly by operational improvements and reduced costs.
Provision for Income Taxes
The income tax provision fluctuated slightly, with minimal impact on net margins. It moved from a small tax benefit in 2022 to a nearly neutral position in 2024.
Net Income (Loss)
Net income showed a significant turnaround from a loss of 6.85% in 2022 to a strong positive margin of 33.55% in 2024, reflecting improvements in core profitability and expense management.
Net Loss Attributable to Noncontrolling Interest
This item remained negligible throughout the period, indicating that the net income results largely reflect the core business attributable to the company.
Net Income (Loss) Attributable to AppLovin
The earnings attributable to the company closely follow the net income trends, confirming the sizeable profit recovery and solid financial performance by the end of the analyzed period.