AppLovin Corp. (NASDAQ:APP)

Revenue

The revenue demonstrates a consistent upward trajectory over the period analyzed. Starting from approximately 2.79 billion US dollars at the end of 2021, it increased marginally to about 2.82 billion in 2022, reflecting a stable performance. A more pronounced growth occurred in 2023, reaching around 3.28 billion, followed by a significant surge to roughly 4.71 billion by the end of 2024. This pattern indicates robust expansion in the company's core business activities, particularly in the last two years.

Income (loss) from operations

The operating income reveals considerable volatility throughout the period. In 2021, operating income was positive at 150 million US dollars. However, a decline ensued in 2022, resulting in an operating loss of approximately 48 million. A strong recovery is evident in 2023 with operating income rebounding sharply to about 648 million, followed by further substantial growth to close to 1.87 billion in 2024. This recovery and growth align with the increasing revenue, suggesting improved operational efficiency or higher-margin revenues over time.

Net income (loss) attributable to AppLovin

Net income attributable to the company follows a pattern similar to operating income but with greater variation. In 2021, net income was positive but modest at roughly 35 million US dollars. A substantial net loss occurred in 2022, amounting to nearly 193 million. The company then reversed this trend considerably, posting a net income of approximately 357 million in 2023 and an outstanding rise to around 1.58 billion in 2024. This substantial increase in net income in the last two years suggests improved profitability and possibly effective cost management or other income sources contributing positively to the bottom line.

Current Assets

The current assets exhibited a notable decrease from the end of 2021 to the end of 2023, declining from approximately $3.2 billion to $1.6 billion. However, by the end of 2024, there was a recovery, with current assets rising to about $2.3 billion. This pattern suggests an initial reduction in liquidity or short-term resources followed by partial replenishment.

Total Assets

Total assets also declined over the four-year span, moving from around $6.2 billion at the close of 2021 to roughly $5.4 billion at the end of 2023. By the end of 2024, total assets partially recovered to approximately $5.9 billion. This trend reflects an overall contraction in the company's asset base with some asset rebuilding in the most recent year.

Overall Trends and Insights

The data indicates a downward trend in both current and total assets during the initial three-year period, potentially signaling strategic asset divestment, operational challenges, or capital restructuring. The subsequent rebound in the final year suggests efforts to strengthen the asset base, possibly through acquisitions, capital infusions, or improved operational performance. The recovery in current assets might improve liquidity metrics, supporting short-term obligations, while the stabilization of total assets could enhance the company's capacity for growth or operational maneuvering.

Current Liabilities

Current liabilities decreased from 640,097 thousand US dollars at the end of 2021 to 578,958 thousand at the end of 2022. However, there was a significant increase in the following years, reaching 944,122 thousand in 2023 and further rising to 1,057,472 thousand by the end of 2024. This pattern indicates an initial reduction in short-term obligations, followed by a marked growth in current liabilities over the last two years.

Total Liabilities

Total liabilities exhibited a slight decline from 4,025,288 thousand US dollars in 2021 to 3,945,169 thousand in 2022. After this modest decrease, total liabilities increased again, climbing to 4,102,858 thousand in 2023 and then to 4,779,441 thousand in 2024. This trend suggests a stabilization and subsequent expansion of the company’s overall financial obligations in the latter periods.

Total Debt

Total debt remained relatively stable between 2021 and 2022, with a marginal decrease from 3,227,644 thousand to 3,211,722 thousand US dollars. It further declined to 3,120,906 thousand in 2023 before increasing to 3,508,983 thousand by the end of 2024. These fluctuations indicate moderate debt reduction efforts followed by increased borrowing or refinancing activity in the most recent year.

Stockholders’ Equity

Stockholders’ equity showed a continuous downward trend throughout the period. It reduced from 2,138,090 thousand US dollars in 2021 to 1,902,677 thousand in 2022, then significantly declined to 1,256,329 thousand in 2023, and further decreased to 1,089,818 thousand at the end of 2024. This persistent decline may point to sustained losses, increased repurchases, or other equity-reducing actions adversely affecting the company’s net asset position.

Net Cash Provided by Operating Activities

The net cash provided by operating activities shows a consistent upward trend over the analyzed periods. Starting at approximately $362 million, it increased to $413 million the following year, more than doubled to about $1.06 billion in the third year, and nearly doubled again to exceed $2.09 billion in the latest year. This progression indicates a strengthening operational cash flow generation capability, suggesting improved core business profitability or more efficient working capital management.

Net Cash Used in Investing Activities

Cash used in investing activities displays a significant shift over the periods studied. Initially, large outflows were recorded, peaking at roughly $1.37 billion in the second year. This outflow dropped markedly in the subsequent years to $78 million and $107 million respectively. The sharp reduction in cash used for investing purposes may point toward a scaling back of capital expenditures or asset acquisitions, potentially signaling a strategic repositioning or completion of major investment projects.

Net Cash Provided by (Used in) Financing Activities

The financing activities reveal a pronounced volatility throughout the timeframe. The first year showed a substantial cash inflow of over $3.1 billion, which then swung dramatically to a cash outflow of approximately $527 million in year two. This negative trend deepened in the following years, with outflows of approximately $1.56 billion and $1.75 billion respectively. This shift suggests an initial phase of capital raising, likely followed by significant repayment of debt, repurchase of equity, or dividend payments, indicating active management of the company's capital structure.

Basic Earnings Per Share

Basic earnings per share exhibited significant volatility over the four-year period. Initially, there was a modest positive value, followed by a decline into negative territory in the subsequent year. However, the company demonstrated a strong recovery, with earnings turning positive and growing substantially in the final two years, culminating in a notable increase by the end of the period.

Diluted Earnings Per Share

The diluted earnings per share mirrored the pattern observed in basic earnings per share. Starting with a positive value, it dropped to a negative figure, maintaining the same magnitude of loss as the basic measure in the second year. The metric then recovered, showing steady improvement and ending significantly higher than the initial values, although slightly lower than the basic earnings per share in the last two years.

Dividend Per Share

There are no dividends recorded for any of the years under review, indicating that the company did not distribute earnings to shareholders in the form of dividends during this timeframe.

Overall, the earnings per share data indicate a recovery and growth phase following a negative performance year. The absence of dividends suggests that the company may have been reinvesting earnings or prioritizing other uses of capital during this period.