Marketing platform AppLovin saw a 36% year-over-year increase in revenue in 2023, generating $953 million, and achieved a net income of $172 million, resulting in a net margin of 18%. These figures are from the company’s Q4 2023 financial results, which also show that adjusted EBITDA soared to $476 million, reflecting an 83% year-over-year growth with an Adjusted EBITDA margin of 50%.
As of the end of Q4 2023, AppLovin had approximately 340 million shares outstanding, with net cash generated from operating activities amounting to $344 million and free cash flow reaching $340 million. In total, AppLovin’s 2023 revenue amounted to $3.3 billion, marking a 17% year-over-year increase, and achieving a net income of $357 million with an 11% net margin. The company also reported an adjusted EBITDA of $1.5 billion, reflecting a 41% year-over-year growth with an Adjusted EBITDA margin of 46%.
AppLovin’s letter to shareholders highlighted its focus on execution and innovation, resulting in double-digit revenue growth and a record Software Platform revenue of $1.8 billion, marking a 76% year-over-year growth and an adjusted EBITDA of $1.3 billion, representing a 58% year-over-year increase with an adjusted EBITDA margin of 69%. The company underlined its commitment to delivering long-term shareholder value, with plans for share management and free cash flow generation.
For the first quarter of 2024, AppLovin expects further stability and growth, projecting total revenue of $955 to $975 million, adjusted EBITDA of $475 to $495 million, and an adjusted EBITDA margin of 50% to 51%. AppLovin’s strong performance in the mobile app ecosystem has positively impacted its share price, with the company also making headlines during its attempted acquisition of Unity. Following the failed deal, Unity experienced a downward trend in its share price, while AppLovin saw a more favorable outcome.
Unity, however, continues to navigate its own challenges with the departure of six ironSource co-founders as part of the company’s restructuring plans.
