AppLovin has released its financial statement for the fourth quarter of 2022, as well as its result for the year as a whole.
The company drew $702 million in revenue in Q4, slightly above the top end of the company’s quarterly guidance. However, this represents a 12% fall compared to Q4 2021. he company also saw net losses of $79 million for the quarter, compared to net gains of $31 million in Q4 2021.
Software revenue grew 24% year-on-year, generating 44% of the company’s total revenue for the period. The company offered revenue guidance of $685 to $705 million for the upcoming quarter.
The company’s strong performance in Q4 is mirrored in its performance throughout the year. Although AppLovin saw a year-on-year decline in revenue in Q4, it generated $2.82 billion in revenue over 2022 as a whole. Despite this, the company also recorded net losses of $192.95 million.
A troubled history
Despite its financial success over the year, it’s worth noting that AppLovin stock has plummeted 8% in the last twelve months, in part due to its failed attempt to acquire Unity for $20 billion. While the company was worth over $40 billion during the pandemic, the company’s valuation stood at under $5 billion on Wednesday, reports Marketwatch.
However, this positive financial statement saw the company’s stock jumped 30% in after-hours trading following the release of the statement, possibly due in part to the company’s strong guidance for the upcoming quarter.
Notably, AppLovin’s strong performance could be a signifier that the decline of the mobile ad market may be nearing its end. Morgan Stanley analyst Matthew Cost stated that the company’s growth trajectory could “rebound in lockstep with the economy,” thanks in part to its focus on “the fast-growing mobile segment,” going on to state that “its market share and technological expertise make it an ideal outlet for advertiser spending.”
We listed AppLovin as one of the top 50 mobile game makers 2022.
