Q3 2025 Applovin Corp Earnings Call Transcript
Key Points
- AppLovin Corp (APP) is experiencing significant growth in conversion rates due to model enhancements and AI technologies.
- The company is expanding advertiser density, which is expected to improve personalized advertising and conversion rates.
- Generative AI-based creative tools are being developed to automatically create ad creatives, potentially increasing conversion rates.
- The MAX platform ecosystem is growing rapidly, driven by higher quality ads and increased demand density.
- AppLovin Corp (APP) is seeing a 50% week-over-week growth in e-commerce customer spend, indicating strong potential for future growth.
- The onboarding process for new customers is not yet fully optimized, which could hinder growth.
- There is a lag time for new customers to integrate and go live, which can delay revenue realization.
- The company is currently demand-constrained, not supply-constrained, indicating a need for more advertisers.
- Expansion into the EU market is limited due to GDPR restrictions, which could slow international growth.
- The company is still in the early stages of developing AI-based ad creatives, which may delay their impact on conversion rates.
(audio in progress)
Questions & Answers
(audio in progress) growth on our business, given we report on a net revenue basis, is increasing the conversion rate.
That happens from a couple of things. You've got the model enhancements, which we always talk about. Those are super impactful in increasing conversion rate. That's a continuous effort. We are in the very, very beginnings of understanding how to work with neural nets and these AI technologies.
If you think about this industry -- and the core AI industry is only a few years old of engineers really being able to extract this kind of value out of these tools and technologies across a broad range of industries. So as this goes forward, we're going to have consistent incremental improvements: sometimes large, sometimes small, but additive to high impact on driving up conversion rate from technology lifts.
Then, you're also going to get advertiser density expanding, paired with our recommendation system, giving the
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