AppLovin Corporation announced strong financial results for the first quarter ended March 31, 2025. Total revenue reached $1.48 billion, a 40% increase year-over-year, with Advertising Revenue soaring 71% to $1.16 billion. Net income for the quarter was $576.4 million, a 144% increase from the prior year, with diluted earnings per share of $1.67.
Adjusted EBITDA for the quarter was $1.01 billion, up 83% year-over-year, with the Advertising segment contributing $943.2 million, a 92% increase and an impressive 81% margin. In contrast, Apps Revenue declined 14% to $325.0 million, underscoring the strategic rationale for its divestiture.
On May 7, 2025, AppLovin entered into a definitive agreement to sell its mobile gaming business to Tripledot Studios for $400 million in cash and an approximately 20% ownership stake in Tripledot. This transaction, expected to close in Q2 2025, marks a clear strategic shift to focus entirely on the higher-growth, higher-margin Advertising business. For Q2 2025, the company guided for Advertising revenue between $1.195 billion and $1.215 billion, and Advertising Adjusted EBITDA between $970 million and $990 million, targeting an 81% margin.
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