07/05/2025 - Applovin Corporation: AppLovin Announces First Quarter 2025 Financial Results (Form 8-K)

AppLovin Announces First Quarter 2025 Financial Results

PALO ALTO - May 7, 2025 - AppLovin Corporation (NASDAQ: APP) ("AppLovin"), a leading marketing platform, today announced financial results for the quarter ended March 31, 2025 and posted a financial update on its Investor Relations website located at https://investors.applovin.com.

First Quarter 2025 Financial Highlights:

(In thousands, except percentages)			Quarter Ended March 31,
			2025						2024						% Change
Advertising Revenue			$1,158,974						$678,370						71		%
Apps Revenue			325,047						379,745						(14)		%
Total Revenue			$1,484,021						$1,058,115						40		%
Advertising Adjusted EBITDA			$943,228						$492,020						92		%
Apps Adjusted EBITDA			61,799						56,751						9		%
Adjusted EBITDA			$1,005,027						$548,771						83		%
Net Income			$576,419						$236,183						144		%

Additional Financial Highlights:

●Net cash from operating activities was $832 million and Free Cash Flow was $826 million for the first quarter 2025.

●During the first quarter 2025, we repurchased and withheld 3.4 million shares of our Class A common stock, for a total cost of $1.2 billion1. At the end of 1Q 2025, we had 338 million shares of our Class A and Class B common stock outstanding.

●On May 7, 2025, we entered into a definitive agreement to sell our mobile gaming business to Tripledot Studios, a privately held company, for consideration of $400.0 million in cash, consisting of $150 million paid at closing and a $250 million promissory note, and an approximately 20% ownership stake in Tripledot common equity, subject to customary purchase price adjustments. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and other customary closing conditions.

Second Quarter 2025 Financial Guidance Summary2

(In millions, except percentages)			2Q25
			Low						High
Total Advertising Revenue			$1,195						$1,215
Total Advertising Adjusted EBITDA			$970						$990
Total Advertising Adjusted EBITDA Margin			81%						81%

1Includes repurchased shares as well as withholdings upon net share settlement of vested equity awards. Total cost includes repurchase costs, including commissions and fees, as well

as cash paid in connection with tax withholding and remittance obligations upon net share settlement

2 We have not provided the forward-looking GAAP equivalents for forward-looking non-GAAP metrics, specifically Adjusted EBITDA and Adjusted EBITDA margin, or a GAAP

reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of

these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to

reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this letter.

Due to the pending sale of our Apps business, we are no longer providing guidance for our Apps segment.

1

Webcast and Conference Calls

AppLovin will host a webinar today at 2:00 PM PT / 5:00 PM ET, during which management will discuss the Company's first quarter 2025 results and provide commentary on its business performance. A question-and-answer session will follow the prepared remarks.

The webinar may be accessed on the Company's investor relations website or via webinar registration. A replay of the webinar will also be available under the Events & Presentations section of our Investor Relations website.

About AppLovin

AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

Contacts

Investors David Hsiao ir@applovin.com			Press Emelyne Interior press@applovin.com

Source: AppLovin Corp.