其中，四季度广告业务收入 9.99 亿美元，调整后 EBITDA 7.77 亿美元，利润率 78%，环比收入到调整后 EBITDA 转化率 75%，因数据中心成本阶梯式增长，后续随 GPU 成本杠杆效应会恢复正常。应用业务收入 3.73 亿美元，同比下降 1%，调整后 EBITDA 7100 万美元，利润率 19%。On Thursday, $Applovin (APP.US)$It surged over 36%, reaching an all-time high.
Recently, Applovin held a conference call for the Earnings Reports of the fourth quarter of 2024. Financial data shows that the company's total revenue for the fourth quarter was 1.37 billion US dollars, a year-on-year increase of 44%; adjusted EBITDA was 0.848 billion US dollars, an increase of 78%, with a profit margin of 62%, and a revenue to adjusted EBITDA conversion rate of 89%; free cash flow was 0.695 billion US dollars, a year-on-year increase of 105% and a quarter-on-quarter increase of 28%.
The adjusted EBITDA to free cash flow conversion rate is 82%, with cash and cash equivalents at the end of the quarter at 0.741 billion USD, and 0.34 billion shares of common stock outstanding. Company Executives stated that the fourth quarter is significant, being the first time holiday shopping advertising revenue has been obtained since the 2023 AXON upgrade, with non-gaming categories driving growth. The platform reaches over 1 billion mobile game users daily, with user engagement duration comparable to social networks.
In the fourth quarter, advertising revenue was 0.999 billion USD, adjusted EBITDA was 0.777 billion USD, and the profit margin was 78%. The quarter-on-quarter revenue to adjusted EBITDA conversion rate was 75%, due to the step-up in datacenter costs, which will normalize later with the GPU cost leverage effect. The application business revenue was 0.373 billion USD, a year-on-year decrease of 1%, with adjusted EBITDA of 71 million USD and a profit margin of 19%.
A term sheet has been signed, planning to divest the application business. The total estimated transaction amount is 0.9 billion USD, which includes 0.5 billion USD in cash, with the remainder representing a minority stake in the merged private company. Subject to regulatory approval, the aim is to complete the transaction in the next quarter, looking forward to seeing this business succeed under new leadership.
Company Executives noted that previously advertising was mainly for games, but now more types of advertisers are being attracted. The fourth quarter indicates that the business model is applicable across multiple categories, and the platform's success is not limited to brands directly targeting consumers. Early pilots show that companies across various verticals can achieve conversions using the platform, with over 10 million online advertising businesses globally monetizing through our platform.
The platform is positioned as a growth engine, shifting from a focus on gaming to servicing the global advertising economy, where users discover new products in games and create additional demand. There is a high demand from advertisers who wish to join the platform, and the advertising system is still under comprehensive development; currently, the system lacks complete automation capabilities, and the primary task this year is to develop automation tools.
Seven years ago, an acquisition was made of a game studio to train machine learning models, and now an exclusive term sheet has been signed to sell the App business, with the original App team joining a company focused on game development. Applovin will transition to a pure advertising platform, focusing on productivity, automation, and building high-impact teams. In Q4, the advertising business generated an average adjusted EBITDA profit of about $3 million per employee, and this is expected to rise in the future.
Editor/ping
