AppLovin Corporation stock research
FY2023 Q1
AppLovin (APP) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased, while cost of revenue decreased, leading to a significant improvement in gross margin. Compared to the same quarter last year, gross margin also rose, driven by a larger proportion of revenue flowing through to gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased, while cost of revenue decreased, leading to a significant improvement in gross margin. Compared to the same quarter last year, gross margin also rose, driven by a larger proportion of revenue flowing through to gross profit.
- The primary driver of margin expansion was the reduction in cost of revenue relative to revenue, as cost of revenue declined while revenue grew.
- Versus the preceding quarter, gross margin improved markedly. Versus the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.4%
Gross profit
$453.4M
Revenue
$715.4M
Cost of revenue
$262.0M
Quarter-over-quarter change
n/a
Year-over-year change
+8.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $715.4M | $453.4M | $262.0M | 63.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+8.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of margin expansion was the reduction in cost of revenue relative to revenue, as cost of revenue declined while revenue grew.
Versus the preceding quarter, gross margin improved markedly. Versus the same quarter one year earlier, gross margin was also higher.
Monitor the trajectory of cost of revenue relative to revenue to assess whether the current margin level can be sustained.