AppLovin Corporation announced robust financial results for the fourth quarter and full year ended December 31, 2024. For Q4 2024, total revenue reached $1.37 billion, a 44% increase year-over-year, surpassing analyst expectations. Net income more than tripled to $599.2 million, or $1.73 per share, significantly exceeding the consensus estimate of $1.24 per share.
The Advertising segment was a key driver, with revenue climbing 73% in the quarter to nearly $1 billion. For the full year 2024, total revenue was $4.71 billion, up 43% from the previous year, and net income was $1.58 billion, a 343% increase. The company's AI-powered AXON advertising system was credited for this historic growth.
Alongside the strong earnings, AppLovin announced it signed an exclusive term sheet to sell its Apps business, primarily composed of mobile game studios, for an estimated $900 million. This includes $500 million in cash and a minority equity stake in the acquiring private company. This strategic divestiture allows AppLovin to focus exclusively on its higher-growth, higher-margin Advertising business. For Q1 2025, the company expects revenue between $1.36 billion and $1.39 billion, with over $1 billion from its advertising segment.
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