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AppLovin provides a suite of tools for mobile app developers to grow and monetize their apps. It offers user acquisition services to help apps reach new users, an ad monetization platform that automates in-app advertising to maximize revenue, and analytics to study user behavior and improve performance. The company earns revenue from running in-app ads for developers and by charging for user acquisition services, while also expanding through acquisitions (e.g., Machine Zone) to integrate new technologies. AppLovin's goal is to be a comprehensive platform that supports app developers through the entire app lifecycle, from attracting users to monetizing and optimizing their apps.
Company Size
501-1,000
Company Stage
IPO
Headquarters
Palo Alto, California
Founded
2012
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Law firm Kirby McInerney LLP has filed a securities class action lawsuit against AppLovin Corporation on behalf of investors who acquired shares between 12 February and 5 August 2026. The lawsuit alleges AppLovin made false statements about its generative AI video creative feature, which faced significant development delays, and overstated improvements to its AI models. On 13 July 2026, AppLovin shares fell $61.13 per share, or approximately 12.65%, following a Bank of America Securities note reporting slower-than-expected e-commerce ad growth. Shares dropped a further $82.13 per share, or approximately 19.66%, on 6 August 2026 after the company reported second-quarter revenue of $1.92 billion, below consensus estimates of $1.94 billion. Investors have until 16 November 2026 to request lead plaintiff appointment.
AppLovin shares have fallen 36% over three months, outpacing the industry's 14% decline. Despite the pullback, the company reported strong fundamentals with adjusted earnings of $3.76 per share, beating estimates and rising 66.4% year-over-year. Second-quarter revenues grew 52.4% annually to $1.92 billion, slightly missing consensus by 0.75%. The company delivered its fourth consecutive quarter of earnings beats, demonstrating consistent execution. AppLovin's third-quarter guidance signals acceleration, with expected revenues of $2.055-$2.085 billion representing roughly 7.8% sequential growth. This doubles the prior quarter's 4% increase. Management attributes second-quarter moderation to timing of gaming-model improvements rather than weakening demand. The company's AI-powered advertising platform continues driving substantial growth despite elevated investor expectations.
AppLovin and Meta Platforms represent contrasting approaches to digital advertising. AppLovin provides AI-powered technology helping mobile apps find and monetise users, whilst Meta connects billions through social networks. In FY 2025, AppLovin's revenue reached nearly $5.5 billion, up 70% year-over-year, with net income of approximately $3.3 billion and a 60.8% net margin. Free cash flow hit $3.9 billion. Meta reported FY 2025 revenue of close to $201 billion, growing roughly 22.2% annually, with net income of approximately $60.5 billion. Its net margin stood at 30.1%, whilst free cash flow reached $46.1 billion. AppLovin faces competition from Apple and Google, plus ongoing federal securities litigation. Meta contends with privacy regulations and heavy AI infrastructure spending. Despite AppLovin's impressive margins, Meta's massive user base of 3.5 billion daily users provides a stronger long-term foundation for investors.
AppLovin and Reddit both operate in digital advertising but serve different markets. AppLovin focuses on mobile gaming marketing tools, whilst Reddit monetises its community-driven platform through ads and AI data licensing. In FY 2025, AppLovin generated nearly $5.5 billion in revenue, up 70% year-on-year, with net income of approximately $3.3 billion and a 60.8% net margin. The company divested its Apps business in June 2025 to focus on higher-margin software. Free cash flow reached nearly $3.9 billion. Reddit posted nearly $2.2 billion in revenue for FY 2025, growing 69.4% annually. The platform achieved its first full-year profit of roughly $529.7 million, yielding a 24.1% net margin, after losing over $484 million the previous year. Daily active users reached 130 million by mid-2026. AppLovin demonstrates stronger profitability metrics, whilst Reddit shows rapid growth from a smaller base.
AppLovin and Reddit show distinct revenue growth patterns despite both relying on digital advertising. AppLovin generates revenue through its digital software suite, including AppDiscovery for mobile app marketing, whilst Reddit operates an internet platform for community discussions. For the quarter ended June 30, 2026, AppLovin reported $1.9 billion in revenue with a 78% operating margin. Reddit posted $804.9 million with a 29% operating margin for the same period. AppLovin's quarterly revenue has grown steadily from $835.2 million in Q3 2024 to $1.9 billion in Q2 2026. Reddit's revenue increased from $348.4 million to $804.9 million over the same period, though with more volatility. Both companies experience seasonal patterns, with advertiser spending typically increasing during fourth-quarter holiday shopping periods. Reddit recently joined the S&P 500 index and launched new automated campaign management tools for advertisers.