AppLovin Corp. Class A ( (APP) ) has released its Q1 earnings. Here is a breakdown of the information AppLovin Corp. Class A presented to its investors.
AppLovin Corporation, a prominent marketing platform, specializes in providing end-to-end software and AI solutions to help businesses connect with their ideal customers across global audiences. The company recently reported its financial results for the first quarter of 2025, showcasing significant growth in its advertising segment and strategic business decisions that could shape its future trajectory.
In the first quarter of 2025, AppLovin achieved a total revenue of $1.48 billion, marking a 40% increase compared to the previous year. The advertising revenue surged by 71% to $1.16 billion, while the apps revenue saw a decline of 14%, settling at $325 million. Notably, the company’s adjusted EBITDA reached $1.01 billion, an impressive 83% rise from the prior year, driven by a substantial increase in advertising adjusted EBITDA.
AppLovin’s net income for the quarter was $576 million, reflecting a 144% increase year-over-year. The company generated $832 million in net cash from operating activities and maintained a free cash flow of $826 million. A strategic highlight of the quarter was AppLovin’s agreement to sell its mobile gaming business to Tripledot Studios for $400 million, which includes cash and an equity stake, indicating a strategic shift towards focusing on its core advertising business.
Looking ahead, AppLovin has provided guidance for the second quarter of 2025, projecting advertising revenue between $1.195 billion and $1.215 billion, with an adjusted EBITDA margin of 81%. The company’s management remains optimistic about its advertising segment’s growth potential and is poised to capitalize on emerging opportunities in the marketing platform space.