Applovin’s Q2 revenue hits $1.08 billion, up 44% year-on-year with net income skyrocketing 286%

• It’s the company’s platforms and tech that are driving growth
• “Mobile gaming doesn’t constrain our ability to grow our software business”

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Applovin has reported another strong quarter in Q2 with revenue of $1.08 billion, a figure that’s up 44% year-on-year. However, it’s their net income for the quarter that really impresses. This came in at $310 million, a figure that’s up 286% year-on-year at a net margin of 29%.

Adjusted EBITDA was $601 million (again, an impressive 80% increase year-on-year) at an adjusted EBITDA margin of 56%. 

Net cash from operating activities was $455 million (up 98% year-on-year), with Free Cash Flow of $446 million (up 102% year-on-year). 

And it’s good news for their software platform revenue too as it grew consecutively in Q2 to $711 million (a 75% year-on-year increase). Software Platform Adjusted EBITDA expanded from last quarter to $520 million (up 91% year-on-year) at an Adjusted EBITDA margin of 73%. 

With software revenue growing 5% quarter-on-quarter. This follows similar Q1 growth and a trend that’s at odds with the downwards movements elsewhere within the software industry.

Software that operates independently of the software market

​​AppLovin not only makes its own games of course (including hits such as Wordscapes and Matchington Mansion) but its software platform enables devs to market, monetize and analyze their own apps. 

Q2 2024 marked the first anniversary of Applovin’s AXON technology with the company pinning their success on “AXON enhancements through ongoing self-learning and our dedicated development efforts.”

“Mobile gaming doesn’t constrain our ability to grow our software business”, pointed out CEO Adam Foroughi [pictured] on their earnings call, highlighting the fact that while mobile growth may have slowed and not be out of the woods just yet, their software business can grow and – he maintains – will grow independently of any wider mobile industry picture. 

The only way is up

Indeed, Foroughi was at pains to point out that as their models gain more data they’ll be able to find more lucrative users for advertisers and that profits will only grow – this effectively bucking any wider trend in mobile gaming downturn. “An AI driven marketing platform creates growth opportunities that just weren’t possible in advertising before.”

Meanwhile Matt Sumpf, the company’s chief financial officer pointed to a strong quarter with revenue reaching $1.08 billion dollars and adjusted EBITAE of $601 million. These figures represent a 44% increase in revenue and an 80% increase in adjusted EBITAE year-on-year.

An AI-powered future

“In the second quarter of 2024, we celebrated the first anniversary of our enhanced Axon technology,” the pair said in their shareholder letter.

“Reflecting on the past year, we’re thrilled by the significant growth Axon drove for our advertising partners. Axon enhancements through ongoing self-learning and our dedicated development efforts have fueled robust business performance this quarter.”