AppLovin Corporation stock research
FY2024 Q2
AppLovin (APP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both declined from the prior quarter but gross profit rose compared to the same quarter last year. The cost of revenue decreased significantly from the previous quarter and also fell relative to the year-ago period, leading to a higher gross margin in the current quarter.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both declined from the prior quarter but gross profit rose compared to the same quarter last year. The cost of revenue decreased significantly from the previous quarter and also fell relative to the year-ago period, leading to a higher gross margin in the current quarter.
- The primary observable driver of gross margin improvement was the lower cost of revenue relative to both the prior quarter and the year-ago period, which outpaced the change in revenue.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue dropped more sharply than revenue. Compared to the same quarter one year earlier, gross margin also improved, driven by a higher gross profit despite lower revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.9%
Gross profit
$589.3M
Revenue
$711.0M
Cost of revenue
$121.8M
Quarter-over-quarter change
+10.7 pts
Year-over-year change
+17.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $711.0M | $589.3M | $121.8M | 82.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+10.7 pts
Year-over-year change
Jun 30, 2023
+17.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin improvement was the lower cost of revenue relative to both the prior quarter and the year-ago period, which outpaced the change in revenue.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue dropped more sharply than revenue. Compared to the same quarter one year earlier, gross margin also improved, driven by a higher gross profit despite lower revenue.
Monitor whether the trend in cost of revenue continues at the current lower level or reverts toward prior levels in upcoming quarters.