AppLovin Corp. (NASDAQ:APP)

The operating profit margin exhibited significant fluctuations between 2021 and 2024. Initially positive, it experienced a substantial decline before recovering strongly and continuing to improve over the observed period. This movement is closely tied to changes in income from operations and revenue.

Operating Profit Margin Trend

In 2021, the operating profit margin stood at 5.37%. This decreased considerably in 2022, resulting in a negative margin of -1.70%. A dramatic turnaround occurred in 2023, with the margin increasing to 19.74%. This positive trend continued into 2024, reaching 39.78%.

Income from Operations

Income from operations was US$150.016 million in 2021. It then decreased significantly to a loss of US$-47.791 million in 2022. A substantial recovery was observed in 2023, with income from operations reaching US$648.207 million. This growth accelerated in 2024, with income from operations reaching US$1,873.459 million.

Revenue

Revenue demonstrated a consistent upward trend throughout the period. It was US$2,793.104 million in 2021, increasing to US$2,817.058 million in 2022. Further growth was seen in 2023, with revenue reaching US$3,283.087 million. The most substantial increase occurred in 2024, with revenue reaching US$4,709.248 million.

The substantial improvement in the operating profit margin from 2022 to 2024 is attributable to the combined effect of a recovery and subsequent growth in income from operations, alongside consistent revenue increases. The magnitude of the margin expansion in 2024 suggests increasing operational efficiency or pricing power, or a combination of both.