Analysis of Reportable Segments
AppLovin Corp. operates in 2 segments: Advertising and Apps.
Paying user area
Try for free
AppLovin Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value (EV)
- Selected Financial Data since 2021
- Return on Assets (ROA) since 2021
- Total Asset Turnover since 2021
- Price to Earnings (P/E) since 2021
- Price to Operating Profit (P/OP) since 2021
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to AppLovin Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Segment Profit Margin
AppLovin Corp., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Advertising | ||||
| Apps |
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).
- Advertising Segment Profit Margin
- The profit margin for the Advertising segment exhibited notable fluctuations over the observed periods. Starting at 67.85% at the end of 2021, the margin increased substantially to 77.05% by the end of 2022. This was followed by a decrease to 69.27% in 2023, before rising again to 75.76% in 2024. These variations suggest oscillating profitability within the Advertising segment, implying potential changes in operational efficiency, cost structure, or market conditions impacting this segment over time.
- Apps Segment Profit Margin
- The Apps segment displayed a consistent upward trend throughout the periods under review. The profit margin increased steadily from 12.72% in 2021 to 14.41% in 2022, followed by continued gains to 15.75% in 2023 and reaching 18.65% in 2024. This steady growth indicates improving profitability and possibly enhanced revenue generation or better cost management within the Apps segment.
- Comparative Insights
- While the Advertising segment represents significantly higher profit margins relative to the Apps segment, its margins are more volatile. Conversely, the Apps segment, despite having lower absolute margins, demonstrates steady and consistent growth. This suggests that the Apps segment may be on a trajectory of gradual strengthening, whereas the Advertising segment experiences more pronounced shifts in profitability, potentially impacted by external or internal factors.
- Overall Interpretation
- The data reveal dynamic profit margin patterns in the two principal reportable segments. The Advertising segment’s margin volatility could indicate sensitivity to market or operational changes, whereas the Apps segment’s steady growth signals positive momentum in that business area. This distinction can inform strategic focus and resource allocation aimed at balancing short-term profitability with long-term growth prospects.
Segment Profit Margin: Advertising
AppLovin Corp.; Advertising; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||
| Adjusted EBITDA | ||||
| Revenue | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × ÷ =
- Adjusted EBITDA
- The adjusted EBITDA has demonstrated consistent and substantial growth over the four-year period. Starting at approximately $457.3 million, it increased to roughly $808.4 million in the following year, indicating a strong upward trajectory. This positive trend continued more steeply to about $1.28 billion the subsequent year, and then it nearly doubled to approximately $2.44 billion by the end of the final year. This pattern reflects significant improvements in operational profitability and cost management within the segment.
- Revenue
- Revenue figures also show a robust and sustained increase year-over-year. Beginning at approximately $674 million, revenue expanded to nearly $1.05 billion the next year, representing a substantial increase. The growth accelerated further in the subsequent years, reaching about $1.84 billion and then approximately $3.22 billion by the final year. This strong revenue growth underscores expanding market presence and successful monetization strategies within the advertising segment.
- Segment Profit Margin
- The segment profit margin exhibits some variability but remains generally high across the period. Starting at 67.85%, the margin improved to 77.05% in the following year, indicating enhanced profitability relative to revenue. Although it declined to 69.27% the year after, it recovered to 75.76% in the final year. This fluctuation may suggest challenges in cost control or pricing power during the mid-period, yet the margin remains indicative of strong profitability overall.
Segment Profit Margin: Apps
AppLovin Corp.; Apps; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||
| Adjusted EBITDA | ||||
| Revenue | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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
Segment profit margin = 100 × Adjusted EBITDA ÷ Revenue
= 100 × ÷ =
- Revenue Trend
- Revenue exhibited a declining pattern from 2021 through 2023, dropping from approximately 2.12 billion USD to about 1.44 billion USD. However, there was a slight recovery in 2024, with revenue increasing to roughly 1.49 billion USD, indicating potential stabilization or early signs of growth following the prior decreases.
- Adjusted EBITDA Trend
- Adjusted EBITDA demonstrated a moderate decline from 269.5 million USD in 2021 to 227.0 million USD in 2023, aligning with the downward trend in revenue. Notably, in 2024, Adjusted EBITDA increased significantly to 277.0 million USD, surpassing the 2021 level. This improvement suggests enhanced operational performance or margin expansion despite earlier revenue challenges.
- Segment Profit Margin Trend
- The segment profit margin steadily increased over the entire period, rising from 12.72% in 2021 to 18.65% in 2024. This continuous improvement highlights the company’s growing efficiency or a more favorable cost structure within the segment, contributing to better profitability even when absolute revenue figures were declining.
- Overall Insights
- The data reveals a phase of revenue contraction over three years, followed by stabilization. Despite this top-line pressure, profitability measures improved consistently, as reflected by the rising segment profit margin and the recovery in Adjusted EBITDA in the most recent period. This suggests effective cost management and operational efficiencies that mitigated the revenue decline’s impact on earnings.
Revenue
AppLovin Corp., revenue by reportable segment
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Advertising | ||||
| Apps | ||||
| 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 from Advertising
- The revenue from advertising displays a consistent and significant upward trend over the years. Starting at approximately 674 million US dollars at the end of 2021, it increased to about 1.05 billion in 2022, followed by a further rise to 1.84 billion in 2023. The most pronounced increase occurred between 2023 and 2024, reaching approximately 3.22 billion.
- Revenue from Apps
- App-related revenue demonstrates a downward trend overall. It began at roughly 2.12 billion US dollars in 2021, then declined to around 1.77 billion in 2022. This decline continued into 2023, dropping to approximately 1.44 billion. A slight uptick is observed moving into 2024, when revenue modestly increased to about 1.49 billion.
- Total Revenue
- Total revenue shows a growth trajectory throughout the observed periods. From 2.79 billion US dollars in 2021, it marginally increased to 2.82 billion in 2022. Subsequently, the total revenue rose more substantially to 3.28 billion in 2023 and then accelerated further to reach approximately 4.71 billion in 2024. This substantial increase appears to be primarily driven by the expansion in advertising revenue.
- Overall Analysis and Insights
- The data indicates a strategic revenue shift, with advertising becoming an increasingly dominant source of income. While app-based revenue declined initially and only slightly recovered later, advertising revenue sustained robust growth each year. This shift has resulted in an overall increase in total revenue, with the largest gains occurring in the years 2023 and 2024. The company's revenue mix evolution suggests an enhanced focus on advertising monetization, which has effectively compensated for the reduced app-related revenue and substantially contributed to the rise in total revenues.
Adjusted EBITDA
AppLovin Corp., adjusted ebitda by reportable segment
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Advertising | ||||
| Apps | ||||
| 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).
- Adjusted EBITDA - Advertising Segment
- The advertising segment exhibits a consistent and significant upward trend in adjusted EBITDA over the four-year period. Starting at approximately 457.3 million USD at the end of 2021, the value increased sharply to over 808.4 million USD by the end of 2022, representing a substantial year-over-year growth. This growth trajectory continues into 2023 with a further increase to approximately 1.28 billion USD, followed by an even more pronounced rise to about 2.44 billion USD at the end of 2024. The data indicates that this segment is the primary driver of the company's EBITDA growth, showing a strong expansion in profitability.
- Adjusted EBITDA - Apps Segment
- Contrasting with the advertising segment, the apps segment shows a declining trend in adjusted EBITDA from 2021 to 2023. The EBITDA decreases from roughly 269.5 million USD in 2021 to 254.8 million USD in 2022, then further down to approximately 227.0 million USD in 2023. However, at the end of 2024, there is a noticeable reversal with the adjusted EBITDA rising to approximately 277.0 million USD, suggesting a recovery or improvement in this segment after three years of decline. Despite this rebound, the overall trend over the four years remains relatively flat to slightly downward when compared to the initial 2021 value.
- Total Adjusted EBITDA
- The total adjusted EBITDA results from the combination of the advertising and apps segments and shows a marked upward trend. Beginning at about 726.8 million USD for the year ended 2021, total adjusted EBITDA increased sharply to approximately 1.06 billion USD by the end of 2022. This growth accelerates further in 2023, reaching around 1.50 billion USD, and culminates in a substantial jump to nearly 2.72 billion USD by the end of 2024. The increasing total EBITDA strongly reflects the dominant performance and contribution of the advertising segment, which has outpaced the relatively stagnant apps segment. Overall, the company's adjusted EBITDA has more than tripled within the given time frame, emphasizing robust growth primarily fueled by its advertising operations.