Loading...
•
Mar 31, 2025
AppLovin Q1 2025 Earnings Report
AppLovin reported strong growth in advertising revenue and profitability in Q1 2025.
Key Takeaways
AppLovin delivered a robust first quarter with total revenue of $1.48 billion and net income of $576 million, largely driven by a 71% surge in advertising revenue. The company also announced the divestiture of its Apps business to focus more on its advertising platform.
Total revenue grew to $1.48 billion, up from $1.06 billion a year ago.
Advertising revenue soared by 71% year-over-year to $1.16 billion.
Net income reached $576 million, a 144% increase from the prior year.
AppLovin agreed to sell its Apps business for $400 million in cash and 20% equity in Tripledot Studios.
Forward Guidance
AppLovin anticipates continued momentum in advertising performance in Q2 2025, with expected advertising revenue between $1.195B and $1.215B.
Positive Outlook
- Advertising revenue forecast of $1.195B–$1.215B for Q2 2025.
- Advertising Adjusted EBITDA projected at $970M–$990M.
- Maintained high advertising Adjusted EBITDA margin of 81%.
- Strong cash generation supports capital allocation flexibility.
- Streamlined focus on advertising following Apps business divestiture.
Challenges Ahead
- No guidance provided for the Apps segment due to its pending sale.
- Decreased Apps revenue year-over-year.
- Ongoing restructuring costs may continue in future quarters.
- Goodwill impairment charge of $188.9M recorded in Q1 2025.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...