Applovin Corp FY2025 Q3 Financial Update

4Q24
Financial
9THaXeFinancial 9THaXe

3Q25
*MoEodMEm3wfswMf[
%00’3NQ%6-7327%6F83535
6fwfovf grew to 252cMmmMpo . Net revenue per
installation increased and installations decreased
2 . 2fu-odpnfgspn’pouMovMoh3TfsEuMpot grew
to nMmmMpo , a net margin from continuing
operations of
%eNvtufe FC-8(% 2
increased to 22cMmmMpo , an
3 nEshMo . ‘Eti*mp[ 2
We generated 2cMmmMpo of net cash
from operating activities and 2cMmmMpo of Free
Cash Flow.
2puf8puEmtnE]oputvnevfupspvoeMoh
23vsdpsfEewfsuMtMohcvtMofttop[sfTsftfouttvctuEouMEmm]EmmpguifsfwfovfMouiMttfhnfouEoepvsgvuvsfgpdvtgpsuifdpnTEo]%tEsftvmu[fiEwfsfoEnfepvs7pgu[EsfQmEugpsntfhnfouup%ewfsuMtMoh
upcfuufsEmMho[MuiuifoEuvsfpguiMtcvtMoftt
3%eNvtufeFC-8(%%eNvtufeFC-8(%nEshMoEoe*sff’Eti*mp[Esfopo.+%%QnfEtvsftQmfEtftffV2po.+%%Q*MoEodMEmNfEtvsftWEoeuifsfdpodMmMEuMpogspn+%%Qupopo.+%%QnfEtvsftMouif%TTfoeM\
6fwfovf
nMmmMpot
nMmmMpot
3TfsEuMpot
nMmmMpot
3vutuEoeMoh
EoetiEsftMonMmmMpot
2puf8puEmtnE]oputvnevfupspvoeMoh
2
%eNvtufeFC-8(%%eNvtufeFC-8(%nEshMoEoe*sff’Eti*mp[Esfopo.+%%QnfEtvsftQmfEtftffV2po.+%%Q*MoEodMEmNfEtvsftWEoeuifsfdpodMmMEuMpogspn+%%Qupopo.+%%Q
nfEtvsftmEufsMouiMtvTeEuf
$pp/ovin Corporation 3Q25 Financial 8pdate 2*sff’Eti*mp[
7iEsft3vutuEoeMoh 2fu-odpnfgspn
‘pouMovMoh3TfsEuMpot
5

NEshMo
%eNvtufeFC-8(%
NEshMo

Non-GAAP Financial Measures
SnrtooOdldmsntUehmDmFhDOhmenUlDshnmoUdrdmsdchmDFFnUcDmFdvhsgfdmdUDOO\DFFdosdcDFFntmshmf
oUhmFhoOdrhmsgdTmhsdcRsDsdrCF$$ODsghrrgDUdgnOcdUOdssdUhmFOtcdrFdUsDhmehmDmFhDOldDrtUdrsgDsDUd
mnsoUdoDUdchmDFFnUcDmFdvhsgF$$OhmFOtchmf$citrsdcDA,SC$$citrsdcDA,SC$lDUfhmDmcEUddBDrg
EOnv-$UdFnmFhOhDshnmnedDFgrtFgmnmF$$OehmDmFhDOldDrtUdsnsgdlnrschUdFsO\FnloDUDaOdF$$O
ldDrtUdFDmadentmcadOnv-
:dcdehmd$citrsdcDA,SC$enUDoDUshFtODUodUhncDrmdshmFnldDcitrsdcenUOnrrhmFnldeUnl
chrFnmshmtdcnodUDshnmrmdsnehmFnldsDwdrhmsdUdrsdwodmrdDmcOnrrnmrdssOdldmsnecdasnsgdUhmFnld
dwodmrdmdsdwFOtchmfFdUsDhmUdFtUUhmfhsdlroUnuhrhnmenUadmdehseUnlhmFnldsDwdrDlnUshyDshnm
cdoUdFhDshnmDmcvUhsdneerDmcDretUsgdUDcitrsdcenUmnmnodUDshmfenUdhfmdwFgDmfdfDhmOnrrrsnFj
aDrdcFnlodmrDshnmsUDmrDFshnmUdODsdcdwodmrdUdrsUtFstUhmfFnrsrDrvdOODrFdUsDhmnsgdUhsdlrsgDsvd
adOhdudDUdmnsUdeOdFshudnentUFnUdnodUDshmfodUenUlDmFd-:dcdehmd$citrsdcDA,SC$lDUfhmDr$citrsdc
DA,SC$chuhcdca\UdudmtdenUsgdrDldodUhnc-
:dcdehmdEUddBDrgEOnvDrmdsFDrgoUnuhcdca\nodUDshmfDFshuhshdrOdrrotUFgDrdrneoUnodUs\Dmc
dptholdmsDmcoUhmFhoDOoD\ldmsrnmehmDmFdOdDrdr-:drtasUDFsansgotUFgDrdrneoUnodUs\Dmcdptholdms
DmcoD\ldmsneehmDmFdOdDrdrhmntUFDOFtODshnmneEUddBDrgEOnvadFDtrdvdadOhdudsgdrdhsdlrUdoUdrdms
ntUnmfnhmfUdpthUdldmsrenUoUnodUs\DmcdptholdmssnrtoonUsntUatrhmdrrUdfDUcOdrrnevgdsgdUvd
tshOhydDehmDmFdOdDrdsnnasDhmrtFgoUnodUs\nUdptholdms-
:dadOhdudsgDssgdoUdrdmsDshnmnesgdrdmnmF$$OehmDmFhDOldDrtUdroUnuhcdrtrdetOhmenUlDshnmsn
hmudrsnUrUdfDUchmfntUUdrtOsrnenodUDshnmrDmcnodUDshmfodUenUlDmFdDrsgd\DUdrhlhODUsnldDrtUdr
UdonUsdca\ntUotaOhFFnlodshsnUrDmcDUdUdftODUO\trdca\rdFtUhshdrDmDO\rsrhmrshstshnmDOhmudrsnUrDmc
nsgdUhmsdUdrsdcoDUshdrhmDmDO\yhmfnodUDshmfodUenUlDmFdDmcoUnrodFsr-
$citrsdcDA,SC$Dmc$citrsdcDA,SC$DUdjd\ldDrtUdrvdtrdsnDrrdrrntUehmDmFhDOodUenUlDmFdDmcDUd
DOrntrdcenUhmsdUmDOoODmmhmfDmcenUdFDrshmfotUonrdr-:dadOhdud$citrsdcDA,SC$Dmc$citrsdcDA,SC$
lDUfhmDUdgdOoetOsnhmudrsnUrDmDO\rsrDmcnsgdUhmsdUdrsdcoDUshdradFDtrdsgd\FDmDrrhrshmoUnuhchmfD
lnUdFnmrhrsdmsDmcFnloDUDaOdnudUuhdvnentUnodUDshnmrDFUnrrntUghrsnUhFDOehmDmFhDOodUhncr-:dtrd
$citrsdcDA,SC$Dmc$citrsdcDA,SC$lDUfhmhmFnmitmFshnmvhsgF$$OldDrtUdrDroDUsnentUnudUDOO
DrrdrrldmsnentUodUenUlDmFdhmFOtchmfsgdoUdoDUDshnmnentUDmmtDOnodUDshmfatcfdsDmcptDUsdUO\
enUdFDrsrsnduDOtDsdsgddeedFshudmdrrnentUatrhmdrrrsUDsdfhdrDmcsnFnlltmhFDsdvhsgntUanDUcne
chUdFsnUrFnmFdUmhmfntUehmDmFhDOodUenUlDmFd-:dtrdEUddBDrgEOnvhmDcchshnmsnF$$OldDrtUdrsngdOo
lDmDfdntUatrhmdrrDmcoUdoDUdatcfdsrDmcDmmtDOoODmmhmfDmcvdadOhdudEUddBDrgEOnvoUnuhcdr
trdetOrtooOdldmsDOhmenUlDshnmsngdOohmudrsnUrtmcdUrsDmctmcdUO\hmfsUdmcrhmntUatrhmdrrDmcntU
Ohpthchs\-
SgdrdldDrtUdrgDudFdUsDhmOhlhsDshnmrhmsgDssgd\cnmnshmFOtcdsgdhloDFsneFdUsDhmdwodmrdrsgDsDUd
UdeOdFsdchmntUFnmrnOhcDsdcrsDsdldmsnenodUDshnmrsgDsDUdmdFdrrDU\snUtmntUatrhmdrr-EUddBDrgEOnv
UdeOdFsrFDrgeOnvreUnlansgneFnmshmthmfDmcchrFnmshmtdcnodUDshnmr-NtUcdehmhshnmrlD\cheedUeUnlsgd
cdehmhshnmrtrdca\nsgdUFnloDmhdrDmcsgdUdenUdFnloDUDahOhs\lD\adOhlhsdc-,mDcchshnmnsgdU
FnloDmhdrlD\mnsotaOhrgsgdrdnUrhlhODUldsUhFr-SgtrntUmnmF$$OehmDmFhDOldDrtUdrrgntOcad
FnmrhcdUdchmDcchshnmsnmnsDrrtarshstsdrenUnUhmhrnODshnmeUnlldDrtUdroUdoDUdchmDFFnUcDmFdvhsg
F$$O-
$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd

AppLovin Corporation
Condensed Consolidated Balance Sheets
In thousands e\cept per share data
DecemFer

Assets
Current assets
Cash and cash eUuivalents
Accounts receivaFle net
Prepaid e\penses and other current assets
Current assets of discontinued operations R
Total current assets
Property and eUuipment net
Goodwill
IntangiFle assets net
Other non-current assets
Non-current assets of discontinued operations R
Total assets
LiaFilities and StocOholdersT EUuity
Current liaFilities
Accounts payaFle
Accrued and other current liaFilities
Deferred revenue
Current liaFilities of discontinued operations R
Total current liaFilities
Long-term deFt
Other non-current liaFilities
Non-current liaFilities of discontinued operations R
Total liaFilities
StocOholdersT eUuity
Preferred stocO par valueR shares authori^ed no shares
issued and outstanding as of SeptemFerc and DecemFerc R R
Class A Class B and Class C Common StocO par valueR
Class A Class B Class C
shares authori^ed
Class A Class B Class C nil
and Class A Class
B Class C nil
shares issued and outstanding as of SeptemFerc
and DecemFerc respectively

Additional paid-in capital
Accumulated other comprehensive loss

Retained earnings
Total stocOholdersT eUuity
Total liaFilities and stocOholdersT eUuity
$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd

AppLovin Corporation
Condensed Consolidated Statements of Operations
In thousands e\cept per share data

9naudited
SeptemFer Nine Months Ended
SeptemFer

Revenue
Costs and e\penses
Cost of revenue
Sales and marOeting
Research and development
General and administrative
Total costs and e\penses
Income from operations
Other income e\pense
Interest e\pense

Other income e\pense
net

Total other e\pense net

Income Fefore income ta\es
Provision for income ta\es
Net income from continuing operations
Income loss
from discontinued operations net of
income ta\es R

Net income
Net income loss
per share attriFuted to Class A and Class B common stocOholders – Basic
Continuing operations
Discontinued operations R R

Basic net income per share
Net income loss
per share attriFuted to Class A and Class B common stocOholders – Diluted
Continuing operations
Discontinued operations R

Diluted net income per share
;eighted-average common shares used to compute net income loss
per share attriFutaFle to Class A and Class
B common stocOholders
Basic
Diluted
$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd

AppLovin Corporation
Condensed Consolidated Statements of Cash Flows
In thousands
SeptemFer

Operating Activities
Net income

Adjustments to reconcile net income to net cash provided Fy operating activities
Amorti^ation depreciation and write-offs

Goodwill impairment
R
StocO-Fased compensation e\cluding cash-settled awards

Gain on divestiture net of transaction costs

R
Other

Changes in operating assets and liaFilities
Accounts receivaFle

Prepaid e\penses and other assets

Accounts payaFle

Accrued and other liaFilities

Net cash provided Fy operating activities
Investing Activities
Proceeds from divestiture net of cash divested R
Purchase of non-marOetaFle eUuity securities

Other investing activities

Net cash provided Fy used in
investing activities

Financing Activities
Repurchases of common stocO

Payment of withholding ta\es related to net share settlement

Principal repayments of deFt

Payments of licensed asset oFligation
R
Proceeds from issuance of deFt
Proceeds from issuance of common stocO upon e\ercise of stocO options and
purchase of ESPP shares
Other financing activities

Net cash used in financing activities

Effect of foreign e\change rate on cash and cash eUuivalents
Net increase in cash and cash eUuivalents including cash classified within current
assets of discontinued operations
Less net decrease in cash classified within current assets of discontinued operations
R
Net increase in cash and cash eUuivalents
Cash and cash eUuivalents at Feginning of the period
Cash and cash eUuivalents at end of the period
$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd

AppLovin Corporation
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
In thousands
periods presented
5uarter Ended
5 5 5 5 5
Net cash provided Fy operating activities
Less
Purchase of property and eUuipment

Principal payments of finance leases

Free Cash Flow
Net cash provided Fy used in
investing activities

Net cash used in financing activities

$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd

AppLovin Corporation
Reconciliation of Net Income to Adjusted EBITDA
In thousands e\cept percentages
Adjusted EBITDA for the periods presented
5uarter Ended
5 5 5 5 5
Revenue
Net income
MdslDUfhm
Loss income
from discontinued operations net of
income ta\es

R
Net income from continuing operations
MdslDUfhmeUnlFnmshmthmfnodUDshnmr
Adjusted as follows
Interest e\pense and loss on settlement of deFt
Other income
e\pense net

Provision for Fenefit from
income ta\es

Amorti^ation depreciation and write-offs
Non-operating foreign e\change gain
loss

StocO-Fased compensation
Transaction-related e\pense

Restructuring costs
Total adjustments
Adjusted EBITDA
$citrsdcDA,SC$lDUfhm
$oo/nuhmBnUonUDshnmPEhmDmFhDOTocDsd