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AppLovin‘s revenue for Q3 2024 surged to $1.2 billion, a 39% YoY increase.
This comes from the company’s latest financials, which showed a net income of $434 million (+300%) and a 36% net margin. Apps segment revenue rose 1% YoY to $363 million, with an Adjusted EBITDA of $68 million at a 19% margin.
“We continue to manage user acquisition and optimise the cost structure of our Apps business. We expect the Apps business to be stable on an ongoing basis,” said the company.
Adjusted EBITDA reached $722 million (+72%) at a 60% margin. Operating cash flow was $551 million (+177%), and free cash flow was $545 million (+182%).
Software platform growth continues
In Q3, AppLovin’s software platform revenue rose to $835 million, a 66% increase year-over-year, with Adjusted EBITDA reaching $653 million (+79%) at a 78% margin.
The company said it retired and withheld 5 million shares of Class A stock at a cost of $437 million.
Confident in AppLovin’s future, the board raised the share repurchase authorisation by $2 billion, bringing the total remaining authorisation to $2.3 billion, with repurchases to be funded by free cash flow.
By the end of Q3 2024, AppLovin had $568 million in cash and cash equivalents, and 335 million shares of Class A and B stock outstanding.
Looking ahead
AppLovin said that it prioritises a strong capital structure and strategic capital allocation to drive long-term shareholder value.
To achieve this goal, the company plans to invest in top talent and technology to support organic growth to manage share capital with ongoing repurchases funded by free cash flow and selective equity grants for employees.
The company also aims to maintain a capital base with “sufficient liquidity” and a net debt leverage ratio under 2.0x to ensure financial flexibility.
“We had another fantastic quarter in Q3. Our AXON models continue to improve through self learning and, more importantly this quarter, from technology enhancements by our engineering team,
“As we continue to improve our models our advertising partners are able to successfully spend at a greater scale. We’re proud to be a catalyst to reinvigorating growth in our industry.”
