AppLovin Corporation stock research
FY2024 Q3
AppLovin (APP) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit increased compared to the previous quarter, while cost of revenue remained nearly stable. Gross margin improved, driven by a larger gross profit relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit increased compared to the previous quarter, while cost of revenue remained nearly stable. Gross margin improved, driven by a larger gross profit relative to revenue.
- The stronger gross margin compared to the prior quarter was supported by revenue growth with cost of revenue staying essentially flat. Relative to the same quarter last year, gross margin improved as cost of revenue declined while gross profit rose.
- Compared to the previous quarter, revenue and gross profit are higher, cost of revenue is slightly lower, and gross margin improved. Compared to the same quarter a year ago, revenue is lower but gross profit is higher, cost of revenue is substantially lower, and gross margin strengthened notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
85.5%
Gross profit
$714.3M
Revenue
$835.2M
Cost of revenue
$120.9M
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+16.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $835.2M | $714.3M | $120.9M | 85.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+2.6 pts
Year-over-year change
Sep 30, 2023
+16.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The stronger gross margin compared to the prior quarter was supported by revenue growth with cost of revenue staying essentially flat. Relative to the same quarter last year, gross margin improved as cost of revenue declined while gross profit rose.
Compared to the previous quarter, revenue and gross profit are higher, cost of revenue is slightly lower, and gross margin improved. Compared to the same quarter a year ago, revenue is lower but gross profit is higher, cost of revenue is substantially lower, and gross margin strengthened notably.
Monitor the trend in cost of revenue, which declined versus both prior periods and is a visible factor in margin improvement.