AppLovin Corporation stock research
FY2024 Q4
AppLovin (APP) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose; gross margin decreased slightly. Relative to the same quarter last year, revenue and gross profit shifted from negative to positive, resulting in a substantially higher gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose; gross margin decreased slightly. Relative to the same quarter last year, revenue and gross profit shifted from negative to positive, resulting in a substantially higher gross margin.
- The strongest observable margin driver is the dramatic turnaround in gross profit from a negative figure a year ago to a positive figure this quarter, which directly lifted the gross margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
84.7%
Gross profit
$846.1M
Revenue
$999.5M
Cost of revenue
$153.4M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+72.5 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, 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% |
| Dec 31, 2024 | $999.5M | $846.1M | $153.4M | 84.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.9 pts
Year-over-year change
Dec 31, 2023
+72.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the dramatic turnaround in gross profit from a negative figure a year ago to a positive figure this quarter, which directly lifted the gross margin.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved significantly.
Monitor the trend in cost of revenue relative to revenue, as any shift could affect future gross margin levels.