AppLovin Corporation stock research
FY2024 Q1
AppLovin (APP) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. The cost of revenue was lower than the prior quarter but higher than a year ago, while gross profit increased substantially.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. The cost of revenue was lower than the prior quarter but higher than a year ago, while gross profit increased substantially.
- The gross margin strengthened significantly from the prior quarter and also improved from a year ago, driven by a larger increase in gross profit relative to revenue.
- Compared to the prior quarter, revenue turned positive and gross profit shifted from negative to positive, resulting in a much higher gross margin. Versus the same quarter last year, revenue, gross profit, and gross margin all increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.2%
Gross profit
$764.0M
Revenue
$1.1B
Cost of revenue
$294.1M
Quarter-over-quarter change
+60.1 pts
Year-over-year change
+8.8 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $750.2M | $491.6M | $258.6M | 65.5% |
| Sep 30, 2023 | $864.3M | $599.2M | $265.0M | 69.3% |
| Dec 31, 2023 | -$488.1M | -$59.1M | -$429.0M | 12.1% |
| Mar 31, 2024 | $1.1B | $764.0M | $294.1M | 72.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+60.1 pts
Year-over-year change
Mar 31, 2023
+8.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened significantly from the prior quarter and also improved from a year ago, driven by a larger increase in gross profit relative to revenue.
Compared to the prior quarter, revenue turned positive and gross profit shifted from negative to positive, resulting in a much higher gross margin. Versus the same quarter last year, revenue, gross profit, and gross margin all increased.
Monitor the trend in cost of revenue, which increased from a year ago and could pressure gross margin if it grows faster than revenue.