Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

$24.99

Analysis of Geographic Areas

Microsoft Excel

Area Asset Turnover

AppLovin Corp., asset turnover by geographic area

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
United States
Rest of the World

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).


United States Asset Turnover
The asset turnover ratio in the United States shows notable variability over the presented periods. It increased slightly from 65.69 at the end of 2021 to 67.67 in 2022, indicating improved efficiency in asset utilization during this interval. However, there is a significant decline in 2023, with the ratio falling to 41.39. This represents a substantial drop in turnover efficiency compared to previous years. In 2024, the ratio recovers to 60.24, suggesting partial restoration of asset utilization efficiency, though still below the 2021 and 2022 levels.
Rest of the World Asset Turnover
The asset turnover ratio outside the United States exhibits a consistent downward trend from 2021 through 2023, decreasing from 29.16 to 20.53 and then more sharply to 10.44. This pattern indicates a steadily declining efficiency in asset utilization in these markets over the first three years. A moderate improvement is observed in 2024, with the ratio rising to 17.43, which, while positive, remains significantly below the initial 2021 value.
Overall Trends and Insights
Comparatively, asset turnover ratios are higher in the United States than in the rest of the world throughout the period examined. The data suggest that asset efficiency in the domestic market, although marked by fluctuations, remains stronger than in international markets. The sharp declines seen in 2023 for both regions may point toward operational challenges or changes in asset base or revenue generation in that year. The partial rebounds in 2024 indicate some recovery efforts or market conditions improving asset utilization but not yet reaching earlier peak performance.

Area Asset Turnover: United States

AppLovin Corp.; United States; area asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Revenue
Property and equipment, net
Area Activity Ratio
Area asset turnover1

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).

1 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =


Revenue
The revenue exhibited a consistent upward trend across the reported periods. It increased from approximately $1.69 billion in 2021 to about $2.69 billion in 2024, reflecting a significant growth trajectory. The most notable increase occurred between 2023 and 2024, suggesting an acceleration in revenue generation during that final year.
Property and Equipment, Net
The net value of property and equipment remained relatively stable from 2021 to 2022, with a slight decline. However, there was a marked increase in 2023, nearly doubling compared to the previous year, followed by a modest reduction in 2024. This pattern indicates a substantial investment in fixed assets in 2023, potentially supporting operational capacity expansion, with a slight depreciation or disposal of assets thereafter.
Area Asset Turnover
The area asset turnover ratio displayed variability over the period. It started at a high level in 2021, increased slightly in 2022, but then fell sharply in 2023 before partially recovering in 2024. Despite the recovery, the ratio in 2024 remained below the levels seen in earlier years. This suggests fluctuations in how efficiently the company utilized its property and equipment to generate revenue relative to the physical area considered, with a dip in operational efficiency in 2023 followed by some improvement.

Area Asset Turnover: Rest of the World

AppLovin Corp.; Rest of the World; area asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Selected Financial Data (US$ in thousands)
Revenue
Property and equipment, net
Area Activity Ratio
Area asset turnover1

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).

1 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= ÷ =


Revenue
The revenue exhibited a fluctuating but overall increasing trend over the observed period. Starting at approximately 1.1 billion US dollars at the end of 2021, it slightly declined in 2022. However, a significant growth was observed in subsequent years, with revenue increasing to around 1.31 billion US dollars in 2023 and reaching more than 2 billion US dollars by the end of 2024. This suggests a strong expansion in market demand or business operations in the geographic area during the later years.
Property and Equipment, Net
The net value of property and equipment demonstrated a substantial increase from 2021 through 2023, rising from about 38 million US dollars to approximately 126 million US dollars. This sharp rise indicates considerable investments in physical assets or infrastructure. In 2024, there was a slight decrease to nearly 116 million US dollars, which could reflect asset disposals, depreciation adjustments, or a stabilization following prior growth.
Area Asset Turnover Ratio
The asset turnover ratio, which measures the efficiency of asset use to generate revenue, showed a marked declining trend initially, dropping from 29.16 in 2021 to 10.44 in 2023. This decline points to decreased operational efficiency or the impact of heavy asset investments not immediately translating into proportional revenue increases. Notably, there was a recovery in 2024, rising to 17.43, suggesting improvements in asset utilization or more effective revenue generation relative to employed assets.

Revenue

AppLovin Corp., revenue by geographic area

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
United States
Rest of the World
Total

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 Trends in the United States
The revenue from the United States exhibited a consistent upward trend over the period. Starting at approximately 1.69 billion US dollars at the end of 2021, it experienced moderate growth to around 1.73 billion in 2022. This growth accelerated more noticeably in subsequent years, reaching nearly 1.97 billion in 2023 and significantly increasing to approximately 2.69 billion in 2024. This represents substantial expansion, especially between 2023 and 2024.
Revenue Trends in the Rest of the World
Revenue from the Rest of the World showed a different pattern. Initially, there was a slight decline from about 1.11 billion in 2021 to roughly 1.09 billion in 2022. However, from 2022 onward, revenue began to grow, climbing to approximately 1.31 billion in 2023 and then rising sharply to just over 2.02 billion by 2024. This late but robust growth suggests expanding international market performance.
Total Revenue Analysis
The total revenue, combining both geographic segments, followed a steady growth pattern overall. From about 2.79 billion in 2021, the figure was relatively stable through 2022 at approximately 2.82 billion. The total increased more markedly in the next two years, reaching around 3.28 billion in 2023 and then surging to nearly 4.71 billion by 2024. This pattern underscores a period of accelerated overall revenue growth, with the most significant increase occurring in the final year of the data.
Comparative Insights
While revenue growth in the United States remained strong and consistent, the Rest of the World segment showed an initial decline followed by substantial growth, indicating potential strategic shifts or market developments. The faster growth rate in the international segment during the latter half of the period contributed notably to the overall revenue acceleration. The combination of these trends points to successful expansion in both domestic and international markets, with a particularly sharp rise in revenue in 2024 reflecting possible business scaling or improved market penetration.

Property and equipment, net

AppLovin Corp., property and equipment, net by geographic area

US$ in thousands

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
United States
Rest of the World
Total

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).


United States Property and Equipment, Net
The net value of property and equipment in the United States experienced a slight decline from approximately $25.7 million at the end of 2021 to about $25.5 million at the end of 2022. Subsequently, there was a significant increase to $47.6 million at the end of 2023, followed by a moderate decrease to $44.6 million by the end of 2024. This pattern indicates a notable investment or acquisition phase in 2023, with some scaling back in the following year.
Rest of the World Property and Equipment, Net
The net property and equipment for regions outside the United States showed an overall strong upward trajectory. Starting at around $37.9 million in 2021, the figure rose to approximately $53.0 million in 2022, then showed substantial growth to $125.7 million in 2023. By the end of 2024, a slight decrease was observed, bringing the value to about $115.9 million. This suggests aggressive expansion or capital investment internationally, followed by a minor retraction or adjustment in the asset base.
Total Property and Equipment, Net
The total net value combining both geographic areas followed a similar pattern of growth and slight decline. Beginning at $63.6 million in 2021, the total increased to $78.5 million in 2022. A pronounced surge occurred in 2023, reaching $173.3 million, after which the total fell back somewhat to $160.5 million in 2024. The large increment in 2023 across both segments implies significant property and equipment acquisitions or revaluations, while the subsequent decrease suggests optimization or disposal of assets.
Summary of Trends
Overall, the data reflects a period of stable asset levels in 2021 and 2022, followed by substantial growth in property and equipment in 2023 across both the domestic and international markets. The growth was more pronounced in regions outside the United States. In 2024, a partial reduction in net property and equipment values was observed, possibly indicating strategic asset management, divestments, or depreciation effects. The strong expansion phase suggests a focus on scaling operations or upgrading fixed assets, with the subsequent period reflecting a refinement of this larger asset base.